Community Property Tax withholding Subtraction Adjustment Software Bug (online version)

[desertlife]

Whenever I enter a negative number in the federal tax withholding subtraction adjustment box my refund increases instead of decreases. It also increases my tax withholding at the end of the worksheet instead of decreasing it.

do it yourself deluxe edition

I have spoken to two product experts and one notified the tech team. Will this be fixed on the online version? This is the only hold up for submitting taxes.

[KrisD15]

No, the program seems to be handling the withholding properly.

If you want to subtract an amount from the tax withholding reported, enter that as a number in the "Tax Withholding - Subtraction Adjustment" box, not as a negative number. 

In other words, if 6,000 was reported and you want to subtract 1,000, enter 1,000 not -1,000. 

Entering it as a negative number is acting as a double negative and ADDING the amount of withholding you are claiming. 

Adding withholding (or entering a negative subtraction) would normally increase a refund. 

Please enter the subtraction as a positive number, but under "Subtraction Adjustment". 

[desertlife]

This is incorrect. The maximum number value allowed is 0 which means you have to put a negative number in. If you put a positive number in it gives you an error message: “Maximum value is 0”.

the state box works just fine with a negative number and appropriately subtracts with a negative number. The federal box is doing the opposite.  Please fix.

I went over this directly with the product expert and they saw first hand the inability for the program to subtract the federal number entered. 

other instructions in the community state that you must enter a negative number for subtraction as well.

[VolvoGirl]

Here is another complaint about community property withholding

https://ttlc.intuit.com/community/taxes/discussion/bug-federal-tax-withheld-not-adding-a-negative/01... 

[Timwelter]

That is not working the application says you have to enter a negative value. 

[bugs2]

Same issue on desktop. Can someone please fix this bug? It's impossible to get the right numbers when doing MFS in a community property state when the program insists on adding negative federal withholding adjustments instead of subtracting them. Works fine for the CA state adjustment, as noted here and in other complaints.

[Cellis0809]

Again. The system won't allow you to add a positive number in the subtraction section. It MANDATES that you put in a negative number. 

[bugs2]

@Cellis0809 is absolutely right that it mandates a negative number. But I am not sure that's even the problem here, contrary to @KrisD15's double-negative theory. Turbo tax adjusts withholdings in the correct direction for state taxes using a negative number in the subtraction box. It's only a problem on the federal side. And on the federal 1040 form in turbo tax, the adjustment correctly shows up as a negative number in Line 25c (even correctly offsetting positive amounts that go on that same line, like excess medicare tax or something). But the 1040 bizarrely adds it to get the total withholding in Line 25d. 

@desertlife is right on the money, this is a clear bug that just needs to be fixed

[desertlife]

I have attempted to delete the form and this does not clear the bug. i have also restarted my taxes and it does not clear the bug. It continues to add on the federal subtraction box but not on the state. There has to be another fix, if the state box is working, then the algorithm or code for the federal box is not correct. Please help

[desertlife]

@KrisD15 

This does not work as it requires a negative number. Max value is 0

there has been no solution given that has worked. I am still having the same issues 

[jkucholtz]

Has tbis issue been fixed? What is the work around so I can Submit my taxes?

[desertlife]

I am still having issues as well. I’m ready to file with the exception of this issue.

There has been no change.

i have also double checked my calculations and inputs many times, and its not “user error” but remains a software glitch.

this is the automated message from they’re ai messenger.

“If the tax withholding subtraction adjustment

is not calculating correctly on Form 8958 in

Turbo Tax Online, it may be due to a software calculation issue or incorrect input data related to the withholding allocation between spouses. Ensure all withholding amounts and income allocations entered under the community property section are accurate and complete.

Currently, TurboTax may be aware of such calculation glitches and may release updates or patches to fix these issues. Checking for updates or slightly adjusting the entered withholding data can sometimes trigger the correct recalculation.

If the problem persists, reviewing entries carefully or waiting for a software update might be necessary as this can be a known software limitation at times.”

[anflores]

I'm experiencing the same issue on desktop. The negative community property withholding adjustment is requiring an amount < 0 but when a negative number is entered, the total payment 25d (subsequently line 33) in form 1040 is not calculating properly and is adding instead of subtracting the amount. I have tax file number to share if needed. This is preventing me from submitting my taxes.

[PatriciaV]

It would be helpful to have a TurboTax ".tax2025" file that is experiencing this issue for further investigation.

You can send us a “diagnostic” file that has your “numbers” but not your personal information.  If you would like to do this, please follow these instructions: 

In TurboTax Online, open your return, go to the black panel on the left side of your program and select Tax Tools. 

1. Then select Tools below Tax Tools.
2. A window will pop up which says Tools Center.
3. On this screen, select Share my file with Agent.
4. You will see a message explaining what the diagnostic copy is.  Click okay through this screen and then you will get a Token number.
5. You may wish to snap a screenshot to post instead of the actual number.
6. Reply to this thread with your Token number (including the dash) and tag (@) the Expert requesting the token from you.
7. Please include any States that are part of your return - this is VERY important.

If you are using TurboTax for Desktop, go to Online in the top menu, then choose "Send Tax File to Agent."

We will then be able to see the same experience you are having and forward to our tech team for evaluation.

@desertlife 

@jkucholtz

@anflores 

[desertlife]

The online software was updated and the bug was fixed. I can’t speak for the desktop version.