MN Revenue department stated that my 2019 standard deduction computed was incorrect. Since standard deduction is computed by TT, was there a bug in the software?

[anadbama]

When computing standard deduction that exceeded max, TT appears to have made a mistake. When I compute based on instructions, I got the $ indicated by MN

[Mike9241]

could be a bug we can't see your return nor know if you did something that caused the error.  file a claim. if Turbotax made a calculation error it is only responsible for penalties and interest. you still have to pay the taxes.

[xmasbaby0]

I RECEIVED A LETTER FROM THE IRS/STATE

TurboTax does not receive any information from the IRS or your state after your return was filed, so no one at TurboTax knows about a letter you received from the IRS or the state.

(what the letters from the IRS mean)

I GOT A LETTER FROM THE IRS   

https://ttlc.intuit.com/questions/3605673-i-got-a-letter-or-notice-from-the-irs

I AM BEING AUDITED

If you purchased Audit Defense:

https://ttlc.intuit.com/questions/2924451-i-bought-max-or-audit-defense-and-now-i-m-being-audited

AUDIT SUPPORT

TurboTax has a special phone number for help with IRS/state tax letters, which will be easier than going through regular Customer Support.   At the page below, click on the blue button that says "Get Help from TurboTax Support".  Then it will ask you what tax year is your letter.  Then it will ask you what the letter concerns. Then it will show you the phone number during posted business hours.

https://support.turbotax.intuit.com/irs-notice/audit-support/

[SweetieJean]

The MN standard deduction is based on your filing status and date of birth.  Did the state change either of those, or did you enter them incorrectly?  There really isn't anything to compute, as it is a flat amount.

[mn2019]

Above an income threshold the standard deduction is reduced by a percentage of FAGI.

I also received a letter so it does seem like there was an issue with TT. Pretty straight-forward calculation. Disappointing if TT won't stand behind their calculations - that's why I pay for the service. 

[mn2019]

lol - not sure why the forum converted the acronym for Federal Adjusted Gross Income to "**bleep**". It could have at least warned me so I could spell out so it wouldn't look like I was saying something wrong... 

[NCperson]

@mn2019 - TT will stand behind their calculations - that is what the guarentee is....but the extent of their coverage is the penalties and interest you are changed due to their error.  any increase in the tax owed is not covered by the guarentee; that was clear in the disclosures before you began preparing the tax return.

if you went to a local tax accountant would you expect them to pay the tax if they made a mistake? or offer to pay the penalties and interest due to their error? 

[MNTT]

I got a similar notice. I compared how the TurboTax form determined the MN limitation on standard deduction to the official MN 2019 forms. TurboTax did it wrong. MN limits the standard deduction based on income levels as mentioned above. They multiplied the federal standard deduction by 80% to get value 1. Then they took 3% of the difference of adjusted gross minus $194560 for value 2. They subtracted the smaller of these two values from the standard deduction. They should’ve used the LARGER of the two values.  (I don’t know why they didn’t just copy the MN worksheet as it was written. But they multiplied the standard deduction by 80%, MN multiplied it by 20%)

I haven’t checked to see if they did this in 2020 and 2021. MN Dept of Revenue is probably checking those next.

[AmeliesUncle]

It is actually the State that was wrong with with they put in their Instructions.

https://www.otcpas.com/advisor-blog/minnesota-standard-deduction-correction-tax-no[product key remov...

[mn2019]

Thanks for the update. The link didn't work (gave error) but I was able to find this:

https://www.keyc.com/2022/05/14/ag[product key removed]-richest-minnesotans-owe-more-taxes/

[MNTT]

I agree with @AmeliesUncle and @mn2019 this was a MN Dept of Revenue error in both 2019 and 2020. I assume either the 2019 instructions/forms I reviewed online were modified at some point or MN provided calculations info to tax software companies that were different from what MN put in the instructions/forms for people to read. That could help explain why MN didn’t apply an interest penalty on the amount due. I think another letter regarding 2020 taxes is likely. 

I couldn’t get the links to work because the forum inserts a product key parameter. Delete that from url or googling works. Otcpas.com for Olsen Thielen CPA’s has the scoop.

[Roger252525]

I just got a bill for 2019 also.