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MH1776
New Member

Is Turbotax calculating NY state tax correctly?

I completed and e-filed my taxes using TurboTax Deluxe 2025.  I owed some taxes in NY state.   I just received and audit notice from the NY State Department of Taxation and Finance that I owe additional taxes.   I compared my tax filing with the audit numbers.  My Federal and State adjusted gross income values were correct, I took the standard deduction, and the taxable income on the IT-201 that was filed with NY agrees with the numbers on the audit from NYSDTF.  The only difference is line 37 and line 46 on the IT-201 was determined by TurboTax to be $7839, but NYSDTF identified that the tax amount due is $7911.  The accompanying note is that "The New York State tax you reported on your return reflected a computational error based on the New York State adjusted gross income and taxable income you reported.  We adjusted your return to correct this error."

 

If I pay the difference by April 15 there are no penalties or interest, so I know that TurboTax will not do anything, but it bugs me.  Is there something that I did wrong, or was Turbotax calculating the tax value wrong?  I have been a long time user and was surprised and disappointed with the difference.

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4 Replies
RobertB4444
Employee Tax Expert

Is Turbotax calculating NY state tax correctly?

Unfortunately, without knowing exactly what it is that New York state adjusted it's impossible to tell how the error occurred.  Did they send you a letter explaining what the difference was?

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Is Turbotax calculating NY state tax correctly?

I also filed IT-201, standard deduction.  I received a similar letter saying the tax on my return reflected a computational error and they adjusted my return, which reduced my refund from 363 to 292.  They recited the same taxable income amount as the amount Turbo Tax used.  Is Turbo Tax incorrectly calculating NY tax?

AmyC
Employee Tax Expert

Is Turbotax calculating NY state tax correctly?

Line 37 is the taxable income which would affect the NY tax. If NY shows a difference in line 37, that is one issue. If line 37 matches but line 46 alone is wrong, there could be something.

I created a NY return and compared it to the NY TY25 tax tables and it was correct. The error could be anywhere from the numbers leading to line 37 or from there to line 46.

 

You can submit the paperwork for the accuracy guarantee. Scroll to the bottom and select the most recent year. Enter your information and paperwork received.

@user17743668073 

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Is Turbotax calculating NY state tax correctly?

Thanks...I just went on the NYS website.  It now reflects the notice where they indicated the "calculation error", which resulted in a reduction of my claimed refund by $71. That is what I was complaining about.

BUT

They have issued a second notice, dated 3/19, showing they are refunding the $71.  They say "we adjusted...based on our computations or information we received".  Despite multiple attempts I had not able to get them on the phone.  They made this correction on their own!

So, it appears this was a NYS error, subsequently (and pretty quickly) corrected by NYS.  All that remains is getting the $71 refund, for which they showed a voided specimen check.

That you for your attention and response to what was a NYS error!

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