IRS agreed with the following:AGI, Form 1040 line 11Taxable income, Form 1040 line 15Turbo tax comes up with: Total tax,1040 line 24IRS doesn't agree with Total tax.

Forum|Forum|3 years ago
October 31, 2022
2 replies
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rjs

Level 15

What year is the IRS notice about?

What are the exact amounts on Form 1040 lines 15 through 24?

Does the IRS notice change or disagree with anything else anywhere on the tax return? Does it say that anything is missing? Does it say why they think the total tax on line 24 is wrong?

Critter-3

Level 15

Did you mail in the return ?? Did you have qualifying dividends or long term capital gains ?

chewkongAuthor

Level 2

>Did you mail in the return ??

I mailed in the return. The letter came very late, notice date is Oct 24, 2022. I have to pay interest on the difference.

>Did you have qualifying dividends or long term capital gains ?

I have qualifying dividends and capital lose. Don't think these numbers matter. IRS agreed with line 15 which is Taxable Income.

Turbo Tax should calculate line 16 (Tax) from tax table. And IRS doesn't agree with the number that Turbo Tax came up with?

VolvoGirl

Level 15

There are like 7 different ways to calculate the tax. If you have capital gains or qualified dividends the tax is not taken from the tax table but is calculated separately from schedule D. The tax will be calculated on the Qualified Dividends and Capital Gain Tax Worksheet. It does not get filed with your return.

In the online version you need to save your return as a pdf file and include all worksheets to see it.

For the Desktop version you can switch to Forms Mode and open the worksheet to see it. Click Forms in the upper right (upper left for Mac) and look through the list and open the Qualified Dividends and Capital Gain Tax Worksheet.

dmertz

Level 15

If you have capital gains only from Forms 1099-DIV, no Schedule D will be included in your tax return. Instead, the "not required" box on Form 1040 line 7 is marked. With a mailed tax return, it's not uncommon for the data transcriber to overlook the marking of this box, particularly in this time of the IRS having less experienced and overworked data transcribers. You can determine if this has happened by obtaining your tax return transcript for the year in question and comparing the transcript to what you filed.

Usually when there is an amount on Form 1040 line 7 and the transcribed tax return has no Schedule D or marking of the "not required" box the IRS will ask you to supply what it thinks is a missing Schedule D. It's usually easier to just comply with that request instead of trying to explain that no Schedule D was required and that the IRS erred in not transcribing the "not required" box marking properly.

chewkongAuthor

Level 2

>If you have capital gains only from Forms 1099-DIV, no Schedule D will be included in your tax return. Instead, >the "not required" box on Form 1040 line 7 is marked. With a mailed tax return, it's not uncommon for the >data transcriber to overlook the marking of this box, particularly in this time of the IRS having less experienced >and overworked data transcribers. You can determine if this has happened by obtaining your tax return >transcript for the year in question and comparing the transcript to what you filed.

My return included Schedule D. Form 1040 line 7 "not required" is not checked.

>Usually when there is an amount on Form 1040 line 7 and the transcribed tax return has no Schedule D or >marking of the "not required" box the IRS will ask you to supply what it thinks is a missing Schedule D. It's >usually easier to just comply with that request instead of trying to explain that no Schedule D was required >and that the IRS erred in not transcribing the "not required" box marking properly.

I have qualified dividends. And it's stated clearly on Form 1040 line 3a.

I generate the worksheets in PDF. Looked at the steps of how Turbo Tax came up with the number for line 16. If IRS had mistakenly ignored qualified dividend, the difference would have been: $1452. But IRS's letter claimed that the line 16 is off by $2700.

Should I find out the $2700 difference before I call IRS? Or should I call IRS and work out with the agent to find out?

Thanks always for the reply.