Running some scenarios through Turbotax 2025 premier as married filing separately and noticed a potential bug on the Tax Withholding Adjustments screen. Is anyone else having this issue and is there a workaround? This is preventing me from filing a correct federal return!
Details:
Page: Tax Withholding Adjustment
Section: Tax Withholding - Subtraction Adjustment
- Enter a negative Federal Amount to reduce the withholding for community property adjustment (tried positive number but got an error that the value should be < 0)
- Expected result: Federal withholding reduced by the negative amount entered
- Actual result: Opposite happens. Federal withholding is actually increased by the negative amount entered
- Example: before the adjustment, if my federal refund is $1000 and I enter -$1000 for Federal Withholding Amount Subtraction Adjustment, the federal refund increases to $2000 instead of decreasing to $0.
- I also tried manually updating the value to positive in the Federal Form 1040 but could not enter a positive value there either (same restriction that it must be < 0)
- Sidenote: This appears to be a bug in the federal Form 1040. When I enter a negative value for the State Amount, it calculates correctly in the CA Form 540 Tax Payment Worksheet
