I have used Turbo Tax for years, and this is the 3rd time I have somehow made a mistake, which is very frustrating.
I received a letter from the Indiana Dept of Revenue saying that they are wrong. Instead of getting back $117.00 I owe $2,283.55 because of schedule 5 which shows credits. I have no idea what this all means. Based on the info and attachment, can anyone tell me where I went wrong?
What I want to know is, where do I find schedule 5 and how did that number get populated in there?
Thanks,
Ok, thank you for the information you supplied.
IN is denying any State income taxes withheld on the return filed.
This credit is generally from the W-2, in box 17. Also make sure box 15 and 16 are correct also.
Look at your W-2 and make sure that you have taxes withheld and that they are for IN and not another State.
This is why they denied the $2,212. If you W-2 looks good, and it have IN taxes of $2,212, contact your employer and get a letter from them that this is correct and send your W-2 to IN with the correspondence you recived from them with the letter from your employer.
It appears you did your return correct in TurboTax (if that W-2 is correct).
Your employer may not have submitted the information correctly to IN,
IN may have input something a digit off,
There are a number of reasons this may have had happened.
Good news is that if the W-2 is correct, you will be getting your money, it will just be a few weeks after you send in the information.
Thank you for the quick response.
Box 17 on my W2 reads $1,689.49 which I verified that is what was recorded in Turbo Tax. Box 15 and 16 appears to be correct.
Ok did you have any IN state taxes withheld from another source?
If not, go back and Edit the W-2 section (in the Federal Part) in TurboTax, and look at box 14, as it appears that was entered incorrectly then.
Make sure you don't have any other credits. Here is the Sch 5 <a rel="nofollow" target="_blank" href="https://www.tax-brackets.org/indianataxforms/schedule-5">https://www.tax-brackets.org/indianataxforms/schedule-5</a>
Did you print a copy of your IN return, that might be easier to see where the credits are from?
Here is what I am seeing. Box 14 on both my W2 and in Turbo Tax are blank. If I add my state and local paid taxes that equals the $2,212.00. Keep in mind that in Turbo Tax, I did enter the state tax in box 17 as $1,689.49 and local income tax, box 19 as $522.81. I do have a copy of my state in PDF form that I can refer back to.
sorry I meant box 17 for state taxes, and then you have the county taxes in box 19.
Looking at the State tax form that I submitted to the state, page 5 (which is the Schedule 5) I am seeing the same numbers entered.
Line 1 Indiana state tax withheld $1689.00
Line 2 Indiana county tax withheld $523.
Line 9 Total credits $2,212.00
So you will need to send that W-2 and a letter from employer it is correct to IN.
Great so get a letter from employer and then send W-2 and that Sch 5, to the State of IN. Many states are doing more cross-checks to prevent fraud and your return may have gotten caught up in this.