topic TT seems to be incorrectly calculating my MAGI and now I'm not eligible for any AOTC. How can I correct or override TT's calculation? in Get your taxes done using TurboTax

TT seems to be incorrectly calculating my MAGI and now I'm not eligible for any AOTC. How can I correct or override TT's calculation?

philcalhoun — Sat, 08 Feb 2020 21:07:13 GMT

Re: TT seems to be incorrectly calculating my MAGI and now I'm not eligible for any AOTC. How can I correct or override TT's calculation?

macuser_22 — Sat, 08 Feb 2020 21:21:03 GMT

Your AGI is on the 1040 form line 8b. That is simply the addition of lines 1, 2b,3b,4b,4d,5b,6,and 7a minus any adjustments from schedule 1 line 22.

What makes you thing that it is wrong?

Review the 1040 form to see if you made any data entry error for one (or more) of those lines.

Re: TT seems to be incorrectly calculating my MAGI and now I'm not eligible for any AOTC. How can I correct or override TT's calculation?

philcalhoun — Sat, 08 Feb 2020 21:50:12 GMT

TT gave me a screen saying MAGI (Modified Adjusted Gross Income) of $187,090 exceeds the maximum of $180,000 so we are not eligible for American Opportunity Tax Credit but our AGI is $177,797. When I add in the items shown on the worksheet on Form 970 referred to on this webpage https://www.irs.gov/credits-deductions/individuals/aotc, our MAGI is still $177,797 (no increase from AGI) not the $187,090 stated by the TT online program.

Re: TT seems to be incorrectly calculating my MAGI and now I'm not eligible for any AOTC. How can I correct or override TT's calculation?

macuser_22 — Sun, 09 Feb 2020 00:25:30 GMT

The calculation is done on the 8863 form on part I. The AGI from the 1040 line 8b is entered on the 8863 line 4. If $180,000 or more you don't qualify for the refundable credit.

You can print all forms an worksheets to see that.

Re: TT seems to be incorrectly calculating my MAGI and now I'm not eligible for any AOTC. How can I correct or override TT's calculation?

philcalhoun — Sun, 09 Feb 2020 16:31:19 GMT

@macuser_22 thanks I don’t know why but unfortunately that form doesn’t show when I printed out my TT return (with all forms and worksheets). Yet somehow TT determined that our MAGI is $187xxx. I went to IRS.gov and manually completed that form and worksheet and get an AGI and MAGI that are the same $177xxx. TT support says I need to pay for the next level, Live Tax Advice, in order for them to make sure I entered my info correctly. Not wanting to sound arrogant but if I could do the IRS form manually and follow all the convoluted instructions, it’s hard for me to imagine how I could have incorrectly answered TT more straightforward interview questions about foreign tax credit and other issues affecting MAGI. I appreciate your help with this as TT support appears to have wiped its hands clean of this.

Re: TT seems to be incorrectly calculating my MAGI and now I'm not eligible for any AOTC. How can I correct or override TT's calculation?

macuser_22 — Sun, 09 Feb 2020 16:51:47 GMT

I can only suggest that you call customer support who can see your tax return (with your permission of course) to see what the problem might be. Nobody in this discussion forum can see your return or what you are entering.

There is no single published number because it changes contently depending on the nature of the call and agent availability. Following the link below will either give a current number for you to call or take your number for a callback.

(Note that phone support is for paying customers only. There is no phone support for Free Customers.)

Here is a TurboTax FAQ for contacting customer support.

https://ttlc.intuit.com/questions/1899263-what-is-the-turbotax-phone-number

Re: TT seems to be incorrectly calculating my MAGI and now I'm not eligible for a ROTH IRA contribution. How can I correct or override TT's calculation?

raymondalessio — Sun, 07 Feb 2021 03:07:04 GMT

TT seems to be incorrectly calculating my MAGI and now I'm not eligible for a ROTH IRA contribution. How can I correct or override TT's calculation? The calculated MAGI is incorrect by the exact amount of my RMD actually withdrawn after taking into account a QCD. It seems to be adding the amount I withdrew in 2020 as an RMD less the QCD from my Traditional to my AGI. This additional MAGI puts me over the limit allowed to make a ROTH contribution. This is incorrect. How do I get around it?

Re: TT seems to be incorrectly calculating my MAGI and now I'm not eligible for a ROTH IRA contri...

SamS1 — Mon, 08 Feb 2021 01:37:02 GMT

The MAGI is a calculation based on the lines from our 1040. It is basically your AGI with some add backs. Click Here to review the MAGI calculation in TurboTax.

Here is a link to IRS Pub 590A with the Roth IRA MAGI worksheet for review

Re: TT seems to be incorrectly calculating my MAGI and now I'm not eligible for a ROTH IRA contribution. How can I correct or override TT's calculation?

macuser_22 — Mon, 08 Feb 2021 02:25:23 GMT

@raymondalessio wrote:

TT seems to be incorrectly calculating my MAGI and now I'm not eligible for a ROTH IRA contribution. How can I correct or override TT's calculation? The calculated MAGI is incorrect by the exact amount of my RMD actually withdrawn after taking into account a QCD. It seems to be adding the amount I withdrew in 2020 as an RMD less the QCD from my Traditional to my AGI. This additional MAGI puts me over the limit allowed to make a ROTH contribution. This is incorrect. How do I get around it?

A taxable Traditional IRA distribution should add to your MAGI. The QCD amount will not.

Did you take a RMD and roll back? If you did you must say that it was NOT a RMD because it was not - there were no RMD's in 2020.