2022 TurboTax Business Errors

[Suzanne19]

Found a few errors that I hope get fixed with updates:

• Deductions - Summary screen shows $0 for insurance deductions when you enter $$ in the interview. The form is not populated with the $$, but it appears to be in the calculation because the net income is correct in the form.
• Retained Earnings recon does not work, on summary page it shows a zero balance but in the questions it asks to confirm the retained earnings balance - the dollar calculated here is the difference between beginning and ending RE, not the actual balance

[SteamTrain]

On the first one....at least in the Personal editions, the $0 in the interview usually indicates that there is a Supporting Details (SD) sheet attached to that field.

Usually, a double-click on the field will pop that SD sheet up, and you can make entries on that SD worksheet, or delete the SD entirely and leave the field open for direct entry.

A second way if double-click doesn't work is to click on the field once, then go up to <Edit> and select <Add Supporting Details from the dropdown...then either use the SD sheet, or delete it to release the use of the main interview entry.

[Anonymous_]

Re Deductions: Is the expense for casualty insurance (under common business expenses)?

With respect to RE, you are on your own since TurboTax Business provides little automation and guidance for the corporate balance sheet.

[Suzanne19]

For anyone else having this issue with health insurance deductions, I figured out that it adds the value of the health insurance to wages, but still shows the amount as zero in the health insurance summary in the interview process. The resulting K-1 shows wages as actual wages plus health insurance.  TurboTax should have an explanation about this somewhere, but I was not able to find it.

[BillM223 · Accepted solution]

"The resulting K-1 shows wages as actual wages plus health insurance."

This sounds like the K-1 recipient is a more than 2% owner of a SubS corporation. For this individual, the premiums paid for health insurance for the 2% owner by the SubS corporation are added to the 2% owner's income, and the owner deducts this amount on his/her Schedule 1 (1040). 

If this is the case, then TurboTax is working correctly, even if it is not obvious. Remember that TurboTax is DIY, which assumes that you understand taxation. Learn More links are added in many place (which is how TurboTax might refer to such things), but it is not possible for TurboTax to add Learn More links in every place it might be handy.

@Suzanne19

[Anonymous_ · Accepted solution]

---

@Suzanne19 wrote:

The resulting K-1 shows wages as actual wages plus health insurance. 

---

No, the K-1 does not show "actual wages plus health insurance" in this instance. 

Rather, the corporation can deduct the amount paid for salaries of officers/shareholders plus health insurance premiums paid on their behalf and the result appears on Line 1 (Part III) of the K-1 (ordinary business income (loss)) as part of that calculation; salaries and wages appear on W-2s issued by the corporation.

The corporation then needs to include the premium on the officers'/shareholders' W-2s.

To be blunt, someone without the requisite knowledge should probably not be preparing an 1120-S, but should leave that task (as well as other tax-related functions) to a tax/accounting professional.