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NJL44
Returning Member

Update removed QBI but taxes were sent

Last year, my parents had some 1099 MISC income due to an accountant error within our corporation. It matters not how they got the income. What matters is that I went through TurboTax like I always do, and answered every question. At the end I experienced issues with e-filing due to my stepfather being deceased. Eventually someone within TurboTax or the IRS will pull their head out of their a** and admit fault. Anyway, I printed the taxes, had my mom sign them, and sent them on their way. A few days later, I opened TurboTax to see if there would be an update to fix the e-file situation. After the update, the federal amount due increased by just over $400. The reason was that the software removed the QBI deduction. So here is my question. I relied on TurboTax to accurately do the taxes. It failed. We owe more because the software erroneously gave us that deduction. I didn't ask for it. I answered each question honestly. Now what? 

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3 Replies
ThomasM125
Expert Alumni

Update removed QBI but taxes were sent

If you weren't entitled to the QBI deduction but the return you filed had the deduction on it, then you should wait awhile for the IRS to process your tax return. If you had a refund, they will adjust the refund if they catch the error. If you sent a payment, they will process it in full and send you a refund within a couple weeks or so from when they process the return.

 

If the IRS corrects the error, then you don't need to do anything further. Otherwise, you can prepare an amended return in TurboTax for no additional charge to correct the error.

 

The return is not due until July 15, 2020, so you would have until that time to pay the tax due without incurring any penalties or interest.

 

 

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NJL44
Returning Member

Update removed QBI but taxes were sent

There was never a refund involved. It said we owed around $1880. Now it says we owe $2300. The software gave us the QBI on that MISC income and then removed it when the update went through. According to what I've read, we do not qualify for the QBI. My point was that the software is the one that asked me all the questions, as it does, and determined I qualified for it. Then the update made it realize it was wrong and removed it. Can I just go ahead and send that bill to Intuit? TurboTax has been a garbage pile this year. I don't think I'll be using it again and I might just request a full refund for screwing me like this.

AmyC
Expert Alumni

Update removed QBI but taxes were sent

Here is the link for the accuracy guarantee. You will have to submit the original and explain the update and then the amend. I am sorry for your frustration and trouble.

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