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Albert02
Returning Member

Federal Tax Calculation Error

I just started doing my taxes.  I've entered income data from my W2 forms.  I like to track what I'm doing by checking the TurboTax status display at the top of the screen.  It currently shows a Total Tax value of 30,930 and a Taxes Paid value of 27,167.  These numbers are correct and should equal a difference of 3,763.  However, TurboTax calculates a Tax Due value of 3,777.  I know it's only a $14 difference, but why does it look like the program is not subtracting correctly?  It makes me worry about future calculations as I continue.  Thanks for any help/advice on this.

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2 Replies
rjs
Level 15
Level 15

Federal Tax Calculation Error

Are you using TurboTax Online or the CD/Download TurboTax Software?


Are you talking about the "total tax" and "total payments" in the Tax Summary?


Look at your Form 1040. Do you have a $14 penalty on Form 1040 line 38? What looks like a discrepancy is caused by the way the Form 1040 is designed. Total tax is on line 24 and total payments is on line 33. But the actual difference between lines 24 and 33 doesn't appear anywhere on the Form 1040. The penalty on line 38 is not tax, so it's not included in the total tax on line 24. But it's added to the amount that you have to pay, which is on line 37.

 

Albert02
Returning Member

Federal Tax Calculation Error

Thank you rjs.  You are correct.  When I checked the Forms view, it is showing a $14 penalty on Line 38.  I've used TurboTax for years, but I've never really checked "the math" this early in the process.  I'm pretty sure the penalty will go away once I get finished with my taxes.  I just noticed the numbers didn't add up based on the "progress box" at the top of the screen.  I feel much better proceeding now that I understand the reason for the "discrepancy".  Thank you for taking the time to read my question and for answering it.  I appreciate it.

 

By the way, I am using the Downloaded Software Premier version.

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