How do I report a TurboTax error with calculating MAGI?

[dkleber]

TurboTax Premier has an error in calculating Modified AGI ( MAGI ) MAGI is calculated using Worksheet 1-1 in the Instructions for Form 8962. Line 1 of this Worksheet starts with the AGI, reported in Form 1040 Line 11. Line 2 of this Worksheet adds tax-exempt interest income, reported in Form 1040 Line 2a. In my case, I have no tax-exempt interest income, so Form 1040 Line 2a is $0 I have taxable interest income of $69, so Form 1040 Line 2b is $69 When I calculate my MAGI using this worksheet, I get $69 less than what TurboTax shows, which matches my taxable interest reported in Form 1040 Line 2b and is already included in my AGI reported in Form 1040 Line 11 and in Line 1 of the Worksheet. TurboTax is incorrectly adding the taxable interest income to the MAGI – taxable income already included in the AGI.

[rjs · Accepted solution]

I tested the calculation of MAGI on Form 8962 line 2a in TurboTax Premier and it did not add taxable interest.

First, make sure your TurboTax software is updated. If you are using it in Windows, on the Online menu select "Check for Updates." If it installs an update, see if you still have the problem.

Did you go through all 5 lines of Worksheet 1-1? Line 2 should be zero. Do you have an amount on line 3 or line 4?

Go to forms mode and open Form 8962. Right-click the amount on line 2a and click Data Source. In the Data Source window that opens, is the AGI on the first line, from Form 1040 line 11, correct? Is there a $69 amount anywhere in the Data Source window? Do you see anything that looks wrong?

Look at your Form 1040 in forms mode. What are the exact amounts on lines 2a, 2b, 6a, 6b, and 11? Do you have any foreign earned income? Is there a Form 2555 in your tax return? If so, what are the exact amounts on lines 45 and 50? What are the exact amounts on Schedule 1 lines 8d and 24j?

[dkleber]

Yes, you're right - TurboTax is correctly calculating MAGI and is -not- adding taxable interest.

I just double-checked my numbers, and TurboTax is showing the exact same MAGI that I calculate using the worksheet.

I apologize for the error and thank you for your time in testing and replying.