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There is a bug regarding how SE tax is calculated. It may also affect the excess housing calculation, although this is less common and I have only seen two reports, compared to many more for the SE tax issue.
What seems to be happening is that the choice to pay SE tax on "both" housing and wages does not "Stick" and reverts to one of the other choices.
Some customers have reported fixing the problem by deleting the W-2 and entering it again. Also, make sure you enter the housing allowance on the screen that asks for housing allowance and housing expenses (in the W-2 interview after checking the box for "special circumstances.") Even if the housing allowance is in box 14 of the W-2, it needs to be entered again on the later screen.
The only other solution for now is to change to using turbotax installed on your own computer from a CD or download, since the problem seems to only happen in Turbotax online. You can transfer your partially completed tax file from your online account to your computer so you don't have to start over from scratch.
There is a bug regarding how SE tax is calculated. It may also affect the excess housing calculation, although this is less common and I have only seen two reports, compared to many more for the SE tax issue.
What seems to be happening is that the choice to pay SE tax on "both" housing and wages does not "Stick" and reverts to one of the other choices.
Some customers have reported fixing the problem by deleting the W-2 and entering it again. Also, make sure you enter the housing allowance on the screen that asks for housing allowance and housing expenses (in the W-2 interview after checking the box for "special circumstances.") Even if the housing allowance is in box 14 of the W-2, it needs to be entered again on the later screen.
The only other solution for now is to change to using turbotax installed on your own computer from a CD or download, since the problem seems to only happen in Turbotax online. You can transfer your partially completed tax file from your online account to your computer so you don't have to start over from scratch.
I think you may need to enter a Line 21 adjustment for the excess housing allowance. But the problem could also lie in Step 5, below. The housing allowance has always been complicated, and mistakes are easy to make anywhere along the way. Please review all of these steps. They should lead you to the correct result.
If you're not already on the W-2 entry screen, open your return. (To do this, sign in to TurboTax and click the orange Take me to my return button.) Then search for "W-2" or "W2" (lower-case also works) and click the "Jump to" link in the search results. Follow the instructions to import or manually enter your W-2.
You will now be on the Here's your W-2 info screen. Click Edit to view your W-2 information. If the Box 1 amount hasn't been adjusted for your housing allowance, enter a Line 21 adjustment to income. Here's how:
Related Information:
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