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robndipayne
New Member

How can I edit incorrect standard deduction?

Taxes were rejected because standard deduction of $12000 is INCORRECT in this case where filer is also claimed as dependent on another tax return which has already been filed; the correct standard deduction needs to be $1050; how can I correct this and then resubmit?

7 Replies
JulieCo
New Member

How can I edit incorrect standard deduction?

You need to check that you marked you can be claimed as a dependent on someone else's return in the Personal Information section of TurboTax.  This would set the dependent standard deduction to be calculated.

Select the Personal Info tab at the top of the screen and then select to Edit your information.  On the screen titled Do Any of These Apply to You?  Mark that someone else can claim you on their return. 

ch543b
New Member

How can I edit incorrect standard deduction?

Turbo Tax is still calculating the standard deduction for dependents incorrectly.  They have not fixed problem.

If you go to the IRS webpage, there is a worksheet to calculate it. It says to add 350 to the dependent's income. If the sum is less than 12400 (for 2020), the sum is the standard deduction.  Turbo Tax is almost $459.96 off on my standard deduction. As a result, it states I am getting less refund than what I should be. No one answers phone at 7 pm. I may choose a different option to file online. I have wasted more than an hour on their mistake and I still don't have taxes filed!

Critter-3
Level 15

How can I edit incorrect standard deduction?

Indicating you are a dependent in the MY INFO section is the only way the program can know you are a dependent ... did you mark that box ?  

 

Then depending on the nature of the income  will determine if  the standard deduction be limited ...  read the rules here  :

 

Dependents – If you can be claimed as a dependent by another taxpayer, your standard deduction for 2020 is limited to the greater of: (1) $1,100, or (2) your earned income plus $350 (but the total can't be more than the basic standard deduction for your filing status).Mar 12, 2021

Topic No. 551 Standard Deduction | Internal Revenue Service

Hal_Al
Level 15

How can I edit incorrect standard deduction?

@ch543b said "If you go to the IRS webpage, there is a worksheet to calculate it. It says to add $350 to the dependent's income".

 

That's not correct.  A dependent's standard deduction is the greater of $1100 or his EARNED income + $350, but not more than $12,400.  For purposes of the standard deduction calculation, taxable scholarship is treated as earned income, if entered correctly in TurboTax. 

VolvoGirl
Level 15

How can I edit incorrect standard deduction?

What kind of income do you have?  If you get a 1099NEC or have self employment income there is another calculation you have to make.  

ch543b
New Member

How can I edit incorrect standard deduction?

Yes, that's exactly what I am referring to and Turbo tax said my standard deduction was $460 less than what it should be.  I went to EzTaxReturn and they calculated it correctly. I entered in the same info on that website and it gave the correct numbers. Turbo Tax doesn't have it right. I was not going to get as much of a refund using Turbo Tax v EzTax.  I had calculated my taxes using the directions and worksheets at the IRS website. I just wanted to efile so I thought Turbo Tax a good option. I knew what the numbers should be. I will not recommend Turbo Tax or use it myself after that major mistake.

Hal_Al
Level 15

How can I edit incorrect standard deduction?

Are you just venting or looking for an answer? For an answer, you need to identify the amount and source(s) of the income.  With 1099-NEC income, your net earned income,  is reduced by the self employment tax (SET) deduction (1/2 your SET) in calculating  your standard deduction.  Earned income is net self employment, not necessarily the amount on the 1099-NEC.

 

Bottom line: TurboTax is not doing it wrong.  You are entering it wrong or, more likely, not understanding how the standard deduction is calculated. 

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