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TurboTax made a $30,000 error on our taxes. We checked both our numbers and the IRS. Both were correct, TurboTax miscalculated social security taxable amount by that much

The social security work sheet was not used correctly by TurboTax
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TurboTax made a $30,000 error on our taxes. We checked both our numbers and the IRS. Both were correct, TurboTax miscalculated social security taxable amount by that much

Do you have an amount on 1040 line 6b or is it 0? What usually happens is the IRS changed some other income on your return. Like the taxable amount of a 1099R you got or you missed entering some income. Like if a 1099R got entered on the wrong line 1040 line 4 or 5, the IRS would miss it and think you didn’t report it. By increasing your other income it made more of your SS taxable.

 

You get 0 on 6b if you didn't answer the Foreign question right. Or if the amount on 6b is too low and you are married you answered it wrong for one spouse.

 

There was a new question tasking if you lived in a foreign place. People have been answering it wrong or skipping it. Go back through the Social Security entries and check, check for each spouse if married. If the IRS adjusted your return you do not need to amend.

TurboTax made a $30,000 error on our taxes. We checked both our numbers and the IRS. Both were correct, TurboTax miscalculated social security taxable amount by that much

Check the Turbo Tax Social Security Worksheet.  At the top are boxes if you lived in a foreign country.  Are they checked?

 

SS Foreign.jpg

TurboTax made a $30,000 error on our taxes. We checked both our numbers and the IRS. Both were correct, TurboTax miscalculated social security taxable amount by that much

You always owe your own correct tax.  If the program made a mistake, the Turbotax guarantee is supposed to cover any interest or penalties.  You have to apply for the guarantee within 30 days of getting a penalty notice. 

https://ttlc.intuit.com/turbotax-support/en-us/help-article/intuit-account-billing/submit-claim-turb...

 

However, if the problem is that you missed or incorrectly answered the "foreign person" question, Turbotax considers that user error and won't pay the claim.

 

 

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