I am using TurboTax Deluxe on Mac and have discovered that the calculation of MAGI as used on Form 8839, line 23 is incorrect. TurboTax is populating MAGI as used on Form 8839, line 7 (which, in many cases, is simply AGI from Form 1040). Form 8839, line 23 clearly states that the filer should use the MAGI worksheet in the Form 8839 instructions, which results in a different MAGI than on line 7. This distinction matters because MAGI for Form 8839, line 23 is used solely for the purposes of determining the taxability of employer-provided adoption benefits.
Everything you stated is correct. Form 8839 does have a separate calculation that may or may not represent the AGI on your tax return.
Unfortunately, my 2024 tax return was prepared incorrectly due to TurboTax populating the incorrect MAGI for Form 8839, line 23. TurboTax used the MAGI from Form 8839, line 7. I am reporting this as a bug for your team to investigate. I used TurboTax Deluxe for Mac.
To take a closer look at the situation and report it to the development team for further investigation, it would be very helpful to have a diagnostic copy of your tax file. The diagnostic file will not contain personally identifiable information, only numbers related to your tax forms.
If you would like to provide us with the diagnostic file, follow the instructions below and post the token number in a follow-up thread. If possible, please include a screenshot of the token number so that it will not be redacted.
If using a MAC, go to the menu at the top of the screen, select Help, then, “Send Tax File to Agent”. This will generate the token number.
Thank you for providing your token number. The file you provided did not include Form 8839, so I could not determine whether or not there is a problem with the MAGI calculation.