I first noticed this problem on my 2022 Montana Individual Income Taxes. In Montana there is a partial interest subtraction for all taxpayers over age 65. If you file Montana taxes with status 'Married filing separately on the same form',as I do, the maximum exemption is $1,600 ($800 / taxpayer).
On my 2022 and 2023 Montana Form 2, Turbo Tax calculations were correct on Column B (spouse) but incorrect on Column A (taxpayer). Turbo Tax underestimated the taxpayer's (Column A) exemption for both years, resulting in a higher tax due. Unfortunately, Turbo Tax program would not allow me to override this error.
This item was discussed on Turbo Tax's Community Forum in 2023. There were several users that reported the same problem. Turbo Tax experts responded on chat but did not solve the problem. The experts sighted possible reasons for this happening: user entry errors, bad CD from Costco, recommendation to use Turbo Tax 2023 Upload instead of the CD with error. I did not find any of these reasons acceptable since all users did multiple checks on entries and I switched from CD to Online to do my 2023 taxes, with same problem.
Since Intuit promotes an accuracy guarantee, I would hope you might consider taking a 2nd look at this issue as Montanans file their 2023 income taxes. I have included below, on this post, all the specific information that I entered into Turbo Tax, that affects this issue. Also, I offered a suggestion of how the math might be incorrect in Turbo Tax.
My 2023 Montana Individual Income Tax Return entries : Column A Column B
Form 2 Page 1 Line 2b Taxable interest..... 5,132 2,385
Form 2 Page 5
Line 2 Interest and Mutual fund dividends from federal bonds,
notes and obligations..... 2,571 2,145
Line 3 Partial interest exemption for taxpayers 65 and older 416 240
Note on Line 3b Turbo Tax Data Source:
It says to take the taxable interest from Line 2b Col B less the spouse
earned portion of interest on U.S. obligations.
TURBO TAX CALCULATES CORRECTLY : 2,385 - 2,145 = $240.
Note on Line 3a Turbo Tax Data Source:
It says to take the taxable interest from Line 2b Col A less the taxpayer
earned portion of interest on U.S. obligations.
CORRECT CALCULATION : 5,132 - 2,571 = $2,56I (USE MAXIMUM ALLOWED @ $800)
TURBO TAX CALCULATES INCORRECTLY @ $416
Did this incorrect calculation have anything to do with mixing up filing statuses of
'Married filing jointly' with the 'Married filing separately on same form' that was used
on this 2023 Montana Tax Form 2 ?
Check out this math - 5,132 - (2,571+2,145) = $416. Is it a coincident that this is the same
incorrect amount Turbo Tax calculated??
