Errors in TurboTax 2025?

[MikeMcCII]

I am running TurboTax 2025 on my desktop.  I have problems with both my Federal and State returns.  I am married and filing jointly.

On my federal return, my "taxable income" on line 15 is $86,031.  On line 16 the tax on that income is given as $8,094 by Turbotax.  I checked the tax on $86,031 for a return being files as married, fiing jointly using the IRA 2025 tax tables.  On page 78 of IRS 1040 instructions.pdf page 78 (2025 Tax Table - dated 1/30/2026), it shows that the tax on incomes between $86,000 and $86,050 for married filing jointly is 9,846.  How can I resolve this discrepancy?

On my Pennsylvania state return  my GE pension (converted by GE to an annuity owned by The Northern Trust Company) the amount of my pension ($3,175) is shown as Gross Compansation on line 1 of the return.  This is incorrect since pensions are not taxed in Pennsylvania.  In past years when I filed my Pennsylvania state tax returns using TurboTax, my GE pension did not appear as Gross Compensation.  This error is costing me $97.47 in taxes

[baldietax]

Can't help on PA but for Fed - line 16 is not necessarily a straight tax taxable calc on line 15, esp if you have any qualified dividends or long term cap gains those are included in line 15 but taxed differently - see Qualified Dividends and Capital Gain Tax Worksheet which is what determines line 16.

[rjs]

The tax table is only one of seven different methods that can be used to calculate your federal tax, depending on what is in your tax return. Your tax return must require one of the other methods. The most common reason that you cannot use the tax table is that your income includes qualified dividends or long-term capital gains, which are taxed at lower rates.

In the 2025 IRS Instructions for Form 1040, look at the instructions for line 16. Starting on page 36 it explains the conditions for determining which of the 7 methods to use to calculate the tax.

If you are using the CD/Download TurboTax software you can see which method TurboTax used by looking at the 7 checkboxes in the Tax Smart Worksheet. You can see the Tax Smart Worksheet in forms mode. It's between lines 15 and 16 in the first section of the Form 1040 or Form 1040-SR Worksheet.

[SteamTrain]

@MikeMcCII 

For PA, the income ends up being removed when you answer the retirement income question at the very start of the PA Q&A... Up until you actually start the PA Q&A, it will be included in PA income.

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The question used to look like the following...(has probably changed somewhat) but you'd normally select "I'm eligible, Plan's eligible (No PA tax)":