New York State Taxes Incorrectly Calculated

[LastMinuteFiler1]

TurboTax is not calculating my tax liability properly according to the NYS tax rate schedule.

My IT-201 line 38 (taxable income) is 1,335,968.

According to NYS tax rate schedule, line item 39 calculates to 96,350, yet TurboTax inputs 128,921 into that field.  It is incorrect and nobody is able to correct this issue for me.  I have tried to call support and they couldn't help.  I paid the $60 for live support and they couldn't do anything either.  There is a bug in the way that TurboTax is calculating figures out of the tax rate schedule table and we need it resolved.  If it's happening to me, it's happening to others as well

[SusanY1]

There are a number of taxes that don't necessarily reflect in the tax tables - sometimes (many times) the tax calculation isn't quite that simple. 

 We're happy to take a closer look at it for you if you'd like.

For us to do that, we do need a "Diagnostic file" from your tax return.  This preserves the numbers and calculations but scrubs all of your personal data out of the return.  

You can send one to us by following the directions below:

TurboTax Online:

1. Sign into your online account.
2. Locate the Tax Tools on the left-hand side of the screen.
3. A drop-down will appear. Select Tools
4. On the pop-up screen, click on “Share my file with agent.”
5. This will generate a message that a diagnostic file gets sanitized and transmitted to us.
6. Please provide the Token Number that was generated in the response.  A screenshot works best.

TurboTax Desktop/Download Versions:

1. Open your return.
2. Click the Online tab in the black bar across the top of TurboTax and select “Send Tax File to Agent” *
3. This will generate a message that a diagnostic copy will be created.  Click on OK and the tax file will be sanitized and transmitted to us.
4. Please provide the Token Number (including the dash) that was generated in the response.  A screenshot works best.

*(If using a MAC, go to the menu at the top of the screen, select Help, then, “Send Tax File to Agent”)

[LastMinuteFiler1]

New York State gives very clear direction on how to calculate the tax due.  

Here is the tax rate schedule directly from tax.ny.gov     

https://www.tax.ny.gov/forms/html-instructions/2024/it/it201i-2024.htm#nys-tax-rate-schedule 

Here is the correct calculation and what should be reported back from TurboTax into Line 39 (the 100,237 number)

As you can see, TurboTax is somehow calculating 128,921 for Line 39, rather than 100,237!  Over 28,000 difference!!  This needs to be fixed for all of your clients using your software!!

[LastMinuteFiler1]

Here is a calculation off of Forbes website:

Here is from the Smart Asset calculation tool.  The same exact figure:

There is something definitely wrong with TurboTax's calculation!!

[BillM223 · Accepted solution]

You really need to give us a sanitized copy of your return, as Susan asked for above. Without it, we have insufficient detail to reproduce this situation.

Your first screenshot is for Single/Married Filing Separate. However, your next screenshot shows Tax Computation worksheet 3, which is for "Married filing jointly and qualifying surviving spouse". So which are you?

For example, when I entered as if MFS and this income amount, TurboTax uses Tax Computation Worksheet 9, and comes up with the $128,xxx number.

If you have the CD/download version of TurboTax, please go to Forms mode and look for "Tax Comp Wks". This worksheet will show you exactly how the NYS tax was calculated.

[LastMinuteFiler1]

Hi Bill,

I humbly apologize, thank you for bringing that to my attention.  I did not notice the heading that the first 6 worksheets were only for married and surviving spouse 😔.  Sorry for ringing the alarms bells, just was a bit panicked because I waited until the last minute this year to file these taxes.  Consider this closed.  Still a bit weird though that the other calculation tools came out to around the figure I had calculated.  Oh well