Standard deduction error on 2020 tax.

[obrienma]

On my 2020 tax return, I selected the Married, filing jointly with my wife. Turbo tax entered 27,400 from the chart on page.  First, the IRS lost my tax that was mailed about 1 April 2021. On 1 January, the IRS sent a letter saying the did not find my 2020 return and requested a copy sent to them.  I sent a copy registered to the IRS.  On 21 February I received a letter from the IRS stating I entered the standard deduction wrong.  I did not enter the standard deduction.  It was entered by turbo Tax when I checked the block 'Married filing Jointly'.  The IRS said the correct Standard deduction was $24,800.  The IRS re-computed my 2020 return and fined me $1,731.39 which included a $39.39 penalty.  Where and how do I file my claim for my refund from TurboTax under their guarantee mistakes caused byTurboTax software?

[DoninGA]

The reason your 2020 Standard Deduction was $27,400 is that both of you were age 65 or older.  Based on the dates of birth you entered in the Personal Information section of the TurboTax program.

Standard deductions for 2020

Single - $12,400 add $1,650 if age 65 or older
Married Filing Separately - $12,400 add $1,300 if age 65 or older
Married Filing Jointly - $24,800 add $1,300 for each spouse age 65 or older
Head of Household - $18,650 add $1,650 if age 65 or older

[xmasbaby0]

Did you enter your dates of birth correctly in My Info for your 2020 return?   It goes by your age at the end of the tax year.   Were both of you 65 or older at the end of 2021?

For 2020 the standard deduction:

2020 Standard Deduction Amounts

Single $12,400   (+ $1650 65 or older)

Married Filing Separate  $12,400   (+ $1300 if 65 or older)

Married Filing Jointly $24,800   (+ $1300 for each spouse 65 or older)

Head of Household $18,650  (+ $1650 for 65 or older)

If you entered the correct dates of birth and you were each 65 or older at the end of 2020 then it is the IRS that is wrong and you need to dispute the amount they want to make you pay.   

[obrienma]

We are 75 and 76 for 2020. Married filing jointly. The program put in $27,400.  IRS said it was supposed to be $24,800 so they find me $1,731.35 including penalty.

[DoninGA]

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@obrienma wrote:

We are 75 and 76 for 2020. Married filing jointly. The program put in $27,400.  IRS said it was supposed to be $24,800 so they find me $1,731.35 including penalty.

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Did you not read the two posts on this thread from three hours ago?  You need to challenge the IRS by disagreeing with their penalty.

[obrienma]

I called back to IRS today and found that my standard deduction was correct on my 1040SR (27,400).  The problem today was that Turbo Tax checked line 30 (Recovery rebate credit) and had $1800 listed.  IRS told me that I was not authorized that credit.

[Cynthiad66]

@obrienma -TurboTax is a self prepare system with expert assistance as necessary.  If there was an amount and IRS has your return, there is nothing for you to do.  At this point IRS will make all adjustments and advise you accordingly.  TurboTax does not have access to your return once You file.  IRS does not advise TurboTax of any adjustments or changes.  You will have to work with the IRS on the resolutions.