Why does TurboTax Deluxe 2020 still show maximum MAGI for Roth IRA contributions to still be 193,000. It should be $196,000 for 2020...

[Anonymous_ · Accepted solution]

I will flag a Moderator for this issue, but the software was just released and undergoes a series of updates prior to the opening of the tax filing season.

[Critter-3]

MUCH of the 2020 program has not been updated yet ... and it will not be fully functional until sometime in January or February when it comes to the states.   

[dmertz]

Despite various cost-of-living thresholds being published by the IRS more than a year prior to the release of the corresponding year's TurboTax, the initial release always still shows most of the the previous year's thresholds.  This is a problem every year.  It's inexcusable.

Since you are using the CD/download version of 2020 TurboTax, you can use overrides to make the correction until the developers make the correction.  Corrections of these cost-of-living adjusted values are typically accomplished by early January, most of them by sometime in December.

[Critter-3]

Good Grief people ... the only reasons they put out the program this early is 1) because impatient fools demand it and most important  2) they get to capture market share ( if you buy TT then you won't buy another program). 

So to all the impatient users out there deal with the imperfect beta version you could not wait to download and don't be so surprised when it is not fully functional right out of the gate.  Even my professional program will not be released until December with the caveat that it will not be fully functional until all the forms are IRS approved and we professionals understand this.   If anyone needs to do some tax planning they need to use the fully functional 2019 program  ... 

This is my mini version of  a tutorial  that should be in the downloaded program: 

Always remember to shut off the auto update function once you have filed your returns and do not do any updates unless you have safeguarded the PDF & .taxfiles to a removable storage unit for safekeeping.

 

 

What is Forms Mode?

Forms Mode lets you view and make changes to your tax forms "behind the scenes."

If you're adventurous, you can even prepare your return in Forms Mode, but we don't recommend it. You may miss obscure credits and deductions you qualify for, and you may forget to report things that will come back and haunt you later.

Forms Mode is exclusively available in the TurboTax CD/Download software. It is not available in TurboTax Online.

Related Information:

• Why would I use Forms Mode?
• How do I switch to Forms Mode in the TurboTax for Windows software?
• How do I switch to Forms Mode in the TurboTax for Mac software?

If you want to play around with different figures and tax scenarios without affecting your original return you can ….

• >>>In the TurboTax CD/Download software by creating a test copy: 
• 1.  Open your return in TurboTax. 
• 2.  From the File menu, choose Save As. 
• 3.  Give the copy a new name to distinguish it from the original (for example, by adding "Test" or "Example" to the file name). 
• 4. Click  Save. You are now safely working in the test copy and anything you do here will not affect the original. 
•  https://ttlc.intuit.com/questions/1900642-how-to-make-a-test-copy-of-your-return

• >>  use the WHAT IF tool: 
• - Click Forms Icon (upper right of screen) or Ctrl 2 (forms view) 
• - Click on the Open Form Icon 
• - In the “Type a form name.” area type What-If (with the dash), click on the name of the worksheet - click on Open Form 
• - You will see the worksheet on the right side of the screen; enter the information right into the form 
• - To get back to interview mode - click on the Step-by-Step Icon (upper right of screen) or Ctrl 1

It's always a good idea to make a backup copy of your tax data file, in case your original gets lost or corrupted. Here's how:

1. From the File menu in the upper-left corner of TurboTax, choose Save As (Windows) or Save (Mac).
2. Browse to where you want to save your backup.
   • Tip: If you're saving to a portable device, save it to your computer first to prevent data corruption. Then, after completing Step 4, copy or move the backup file to your device.
3. In the File name field, enter a name that will distinguish it from the original tax file (for example, add "Backup" or "Copy" to the file name)
4. Click Save and then close TurboTax.
5. Restart TurboTax and open the backup copy to make sure it's not corrupted. If you get an error, delete the backup and repeat these steps.

If you make changes to your original tax return file, repeat these steps to ensure your original and backup copies are in-synch.

Related Information:                             

• Retrieve a Tax File from a Portable Device
• What's the difference between the tax data file and the PDF file?

AND save it as a PDF so you have access to a copy even if you don’t have the program still installed and operational :

• How do I save my return as a PDF in the TurboTax software for Windows?
• How do I save my return as a PDF in the TurboTax software for Mac?

AND protect the files :

• How can I protect the tax files on my computer?

[macuser_22]

Their (and the competitors) "evil marketing geniuses"  all want to get their products out ASAP to lock customers in even with incomplete software..  Since the IRS does not accept tax returns until late January, I don't know why anyone would purchase tax software prior to February when it should be mostly complete.

[Critter-3]

It is a capitalist game all the DIY companies do and the end user allows it ... like sheep to the slaughter. 

[Opus 17]

ANY tax software released by any company prior to about January 15 is only released for marketing and market share.  No program is complete and ready to file until the IRS approves their final forms and then individually reviews each program's implementation of the form.  And some tax situations aren't able to be filed until February or March, again mostly due to IRS delays.

Now, it would be better if the updates that were easy to do were done in advance.  But that may not fit the program workflow.  For example, if the MAGI calculation is part of the module or subroutine for form 8606, the programmers may decide not to update any part of the 8606 subroutine until the actual form and instructions for 2020 are released by the IRS and then reprogram the entire module all at once.