Maryland Local Earned Income Problem

[DavidCD]

Hi All -

   I'm having a problem with my daughter's Maryland return.  She got an unexpected W2, so I'm (trying to) amend her original return.  The Maryland State Earned Income Credit correctly notes that with her higher income, she has a smaller credit.  Lines 10b get filled with the correct original amount, the new amount, and the difference.  In lines 11a, however, the new amount is filled in correctly, but the original amount is left blank and the "Check for Errors" flags this - correctly.

   Here's the problem - when I type the original amount in the place for it, TurboTax doesn't calculate the difference for column B - it puts in the negative of the original amount.  It also doesn't calculate the new amount for column C - it leaves this blank.

   And, of course, "Check for Errors" flags this as an error.  An uncorrectable error.  Help!

   Thanks,David

[KeshaH]

If you'd like, we can look at your return and see exactly what you see to  help come to a resolution. The return will be scrubbed and won't include any of your personal details.

If you're using TurboTax Online:

Once you're logged in to your account,

- on the left hand panel, click on Tax Tools and then choose Tools

- on the pop up window, select Share my file with Agent

- you'll see a message saying you'll give us a copy of your tax return. Your personal information will be changed so we can't see any private information.

- click okay and you'll get another message with a token

If you're using TurboTax Desktop:

• Click on Online in the top menu of TurboTax Desktop for Windows
• Select 'Send Tax File to Agent'
• Write down or send an image of your token number and state then place in this issue.
• We can then review your exact scenario for a solution

Please reply to this message with your token so that we can further assist you. Let us know all the states, if any, that are included on the return.

[DavidCD]

Hi -

   Here's the token from uploading the tax file : 123145703736432-88606876

   The problem is the discrepancy between the correct handling of the Maryland State Earned Income Credit and the incorrect Local EIC.  For the local, TT doesn't compute the the difference between the original and amended EIC and doesn't fill in the rightmost column with the amended value

[KeshaH]

Thank you for sending your token. I was able to recreate the issue. As a workaround, you can override the amount in column C to the correct amount. This line doesn't seem to be included in the final refund amount, so it doesn't impact the amount to be paid back to MD.

When I opened the return, I noticed that the MD balance due was $0. This usually happens because the state amendment was set up after the changes were made. Your daughter should have a balance back to the state. You may need to remove the new W-2 and delete the amended returns. Then set up the amendments again for both the federal and the state before adding the new W-2. That should calculate the balance that would be due back to the state.

[DavidCD]

I'm sorry to have taken so long to get back to you - I've been sick.

I backed up my daughter's previous TurboTax files and started over with a fresh return.  I filled it out with her most recent W2 and told TurboTax that I filed it by mail (as with the original).  I then amended the new return by adding the older W2 ...

The same problem occurs - the State Earned Income Credit is calculated correctly.  TurboTax calculates the original and amended Local EIC correctly, but leaves the Net Change and Corrected Amount boxes blank.  If I manually change the original box, the value is copied to Net Change with a minus sign and there is still nothing in the Corrected Amount.  TT correctly flags this as an error, but it is impossible to correct.

I suppose I could print the return, whiteout the errors and write the corrections in, but should be unnecessary.

David

[DavidCD]

PS  It is not possible to type a value in the Corrected Amount column.

[KeshaH]

Hi David, can you create a diagnostic copy of your return and send over the token so that I can compare the two copies?

@DavidCD 

[DavidCD]

Hi -

   Here's the token : 123145703736432

Would it be OK to send the amended Federal return while we try to fix the state?  Or wait until both are correct?

Thanks!

    David

[DavidCD]

That wasn't very helpful!  The first part of the token was the same as last time (see above if it gets munged up again) : 123145703736432-78377765.  The second part is different : 78377765.

Hope it comes through this time!

[KeshaH]

Thank you!

I'm still unable to resolve this error within the Step-by-Step screens, so the best workaround currently is to update the corrected column manually. You'll need to right click on the field and select override from the menu to manually add that amount. 

Please note that overriding values directly on the form voids the TurboTax accuracy guarantee.

@DavidCD 

[Edited 3/18 @ 1:57pm]

[DavidCD]

Perfect!  Thanks so much!  This capability must have been added sometime in the past two decades or so, well after I explored TT as a new user.  D'oh!

Thanks again!