I think Maryland Pension exclusion calculation is wrong

[Don-TT]

I got a letter from Maryland that I owe back tax - the reason being the pension exclusion calculation. I think the problem is Line 1a of the Pension Exclusion Computation Worksheet - it pulled annuity information from my Fed return/1099-Rs, and the amount pulled is higher than the social security amount on line 3 so this resulted in a pension exclusion for my social security benefit that Maryland disputes. From what I read, line 1a should be pensions from an employee retirement system only. I have 3, and they are:

1. From 1099-R Line 7 = 7, IRA/SEP/SIMPLE box is checked (so this is an IRA)

2. From 1099-R, Line 7 - F, IRA/SEP/SIMPLE box is not checked (charitable gift annuity)

3. From 1099-R, Line 7 - F, IRA/SEP/SIMPLE box is not checked (charitable gift annuity)

So to me it appears Turbo Tax should not have pulled these amounts over to the Maryland Computation Worksheet line 1a, right? Isn't this a Turbo Tax bug? It's been doing it for years that way too :(

[TomD8]

My suggestion would be to carefully complete MD's own Pension Exclusion Worksheet manually, and see if your results jibe with the TurboTax calculation.

2020 pension exclusion worksheet (marylandtaxes.gov)

If you find that your original MD tax return is incorrect, you can submit an amended return.

A TurboTax bug of this nature would have conceivably affected hundreds, if not thousands, of MD TT users; but judging by the absence of similar questions, that doesn't seem to have happened.

[Don-TT]

I did  that - it's clearly wrong. The problem is what they include in line 1a, that is all. The whole calculation falls apart or not based on 1a. They are taking any kind of pension reported as valid for this calculation, that is incorrect. I didn't learn of the error until now, and the return questioned is 2017. So given it's a state return, some unusual requirements (over 65, non employee pension, 4 years ago before cited by the state), I figure it's just an obscure bug.

[fanfare]

If the state's correction is correct, there's nothing you can do except:

• amend your 2018-2020 tax returns,
• watch out for that error in the future.
• use a different tax prep software provider.

[Don-TT]

Understood, but why isn't this considered a big to be fixed? It's been done the same way sin e 2017, and it's WRONG.

[nancy415]

I got the same letter from MD regarding my 2017 return.

I called Comptroller who said all that's eligible for exclusion are actual pensions - NOT a couple of annuities I also receive. 

Clearly an error on the part of TurboTax.

I am VERY annoyed.

How do I report this to TurboTax???

[nancy415]

This clearly IS affecting a lot of people - letters are just now being sent out.

[sreneem]

My parents just received a letter today for their 2018 taxes. 

[Don-TT]

I have a reminder to manually fix this, next year. I can't believe TurboTax/Intuit has not acknowledged it.

[Critter-3]

• What is the TurboTax 100% Accurate Calculation Guarantee?
• What is the TurboTax Audit Support Guarantee?

[Don-TT]

@Critter-3 bad links - they both go to https://ttlc.intuit.com/community/home/misc/03/en-us 

[Don-TT]

@Critter-3 I found What is the TurboTax 100% Accurate Calculation Guarantee

Fine print says it must be submitted within 30 days of the assessment. What a joke. Good for nothing 

[VolvoGirl]

That link is still bad.  Do you want this  one? 100% Calculation Guarantee

https://ttlc.intuit.com/community/charges-and-fees/help/what-is-the-turbotax-100-accurate-calculatio...

[nancy415]

I got a letter today for 2018 as well - after getting letter for 2017 error in July.

WHEN will Turbo Tax fix this - or at the least, let us know there is a problem???

I am VERY disappointed with Turbo Tax right now. :(

Amending my return on Turbo Tax fixes nothing - as they keep including more than should be included for pension exclusion.

FIX THIS!

[griffipe]

Just got a letter form the Comptroller saying that my 2018 return had an error in the computation of the pension exclusion.  Have used Turbotax for the last 5 years at least so I assume that I will also be dinged for subsequent filings in 2019 and 2020.  Goodbye turbotax---you are fired!