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@janetleen wrote:
I am working on my 2020 taxes and have discovered the Qualified Dividends and Capital Gains Tax worksheet does not compute the proper tax for either line 22 nor line 24. We are married filing jointly.
Line 22 calculates a tax on $301,272 as $60,464 where the proper computation is $68,885. The formula to be used should be 37,631+.24*(income-$171,050) which for $301,272 computes as $68,885. The base amount TurboTax used to get the wrong number would be an income of $266,187.50 rather than the actual $301,272.
The same problem is on line 24. The amount Turbo Tax computed should be on the income amount of $398,702 giving tax of $101,457 instead of the incorrect computation of $89,616 which would be for a income level of $361,702. What do I do to have this corrected, either my calculations or TurboTax
What is on line 5?
How are figuring the tax? Did you use the tax computation worksheet or form 8615 whichever applies?
See the 1040 instructions page 77 for the proper multiplier and subtraction amounts.
https://www.irs.gov/pub/irs-pdf/i1040gi.pdf
I did the calculation manually and came up with a tax of $60,464.28 for an income of $301,272. TurboTax seems to be correct.
301272 x .24 = 72305.28
72305.28 - 11841 = 60464.28
Trying complete Form 2210, Underpayment of Estimated Tax. Intuit says the form has not been finalized by the IRS, so I will wait until it is released and try again.
TurboTax Business. 2020 (same problem in 2019)
For a Grantor Trust. The software is incorrectly mapping and linking the "Grantor" information with the "fiduciary" information. They are different things. but, if you enter "joe smith" as grantor with social [social security number removed] it puts that information in other places in the return (including the state return) in the fields for the "Fiduciary." And when you enter fiduciary as "suzy Smith" with social [social security number removed] it puts that information in as the grantor in some places. You cannot manually fix it in the form. If you do, it automatically changes the information incorrectly in other parts of the return. This error, which you cannot work around, renders the software UNUSABLE and USELESS. I have to prepare the return manually.
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2020 Form 2210
Keeps returning an error in my entries for FIT paid 1/1-7/15, 7/16-9/15, and 9/16-12/31.
I put one set of entries in "walk-through" by Turbotax, but when I view the actual Form 2210, the values do not match data entry. I zeroed out all data and started over on this section but same error occurs.
When I review my federal return for errors one error keeps recurring for the deferral of self employment tax. In the questionnaire I selected NO for requesting a deferral but TurboTax creates a worksheet in spite of that.
The error msg is "1040/1040SR Wks: line 11 is too large." On my return line 11 is zero because line 10 is a negative number. I've tried numerous time to delete and reenter 0 but an error is reported during error review. Not sure how to get around this and my concern is will my electronic return be accepted by the IRS.
Iowa charges a School and EMS surtax on Iowa state income tax, and this surtax is a deduction on the following year's Iowa Schedule A (Line 4 on 2020 return). I have verified this worked correctly in Turbo Tax at least from 2015 onward. For example, Line 4 of the 2019 Iowa Schedule A contains my 2018 School and EMS Surtax, Line 4 of the 2018 Iowa Schedule A contains the 2017 surtax, and so forth. However, the 2020 Iowa Schedule A Line 4 is zero, rather than the surtax from the 2019 return. Notably, tax year 2020 is the first time I have not itemized deductions for the Federal return, and I wonder if this is related to this problem. The Iowa Schedule A form specifically directs taxpayers to "Include School District Surtax and EMS Surtax from prior years paid in 2020" on Line 4 of Iowa Schedule A.
NJ State Return Capital Gains transfers from Federal correctly as seen on initial summary screen.
This is an addition of the Cap Gains from 1099-DIV and Long Term Capital Gains
NJ Capital Gains Specific Screen lists only the Capital Gains reported on 1099-DIV - if you leave this number, then Turbo Tax replaces the original correct number with only the 1099-DIV.
I had to make note of the summarized number from the initial screen and overwrite.
I had so many issues this year with my taxes by TURBO Tax, where to begin???
There was a W-2 from a prior year which was no longer needed. I deleted it, let me count the times. Several times in the Federal Review, it would come up as something to be fixed because all the fields were blank.
Then there was the 1099-R which was for me not my husband. I corrected it many times, several ways:
Just change the radial button to select me not my husband. Enter a new row for me and delete one for my husband.
NJ State sometimes it was listed as me and sometimes my husband. I don't care anymore that it is currently
incorrect because it shouldn't affect taxes owed.
I started exiting to log changes as soon as I made this changes hoping they would finally take.
I had to delete and start my NJ State Return several times because the incorrect numbers would transfer from Federal for credits for taxes paid from: Prior Year Tax Return, Estimated Payments and amounts paid on W-2, 1099-Rs
The credits would multiply which would make my taxes owed a whopping amount overpaid. I couldn't correct it, I had to delete NJ and start again and again and again.
If Turbo Tax does not fix these problems, I don't see myself as a returning customer.
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Found an obvious error in TurboTax Home and Business 2020
Under Schedule C, Car and Truck Wks
Computes business use % wrong
5c. Total miles vehicle was driven in 2020 = 2055
6. Number of miles driven for business = 2055
9. Percentage of business use 66.67%
I believe the business logic is confused. I sold the car on 8/21/20 so
10b. Months for special allocation = 8
which I think is incorrectly being used to compute #9.
I was able to reproduce this situation by entering the following:
1. On the question "Did you track the miles you drove for personal stuff?"
2. When I answered "Yes, I tracked my personal miles", then the ratio was 100%
3. When I answered "No, I didn't", then the ratio was some percentage (I am not sure at the moment where it came from).
I imagine that you entered that you didn't track your personal miles because you didn't have any (makes sense).
But if you tracked all the miles on the vehicle, then it must be assuming that if you didn't track the personal miles, that it needed to apply some ratio.
Try checking that you tracked your personal miles and see if the ratio goes back to 100%. Let us know.
Turbo tax error:
when calculate tax owe line 37: line 24 minus line 33
($146,110)-($112,691) = $33,419
but on turbo, line 37 is $33,747
This is simple calculation, why this bug happens?
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