How do I report TurboTax Software Errors?

[susieqqq]

My paper 1099-INT shows $27.62 on L1. Interest Income, $1425 on L.8 Tax-Exempt Interest and $52.96 on L.13 Bond Premium on Tax-Exempt Bonds.  After Importing this into Turbo Tax, Deluxe, I created 2 separate 1099-INT's.  I entered L.1 on one form and L.8 and L.13 on the 2nd form.  The amount carried by Turbo Tax to L.2a on Form, 1040 was $1402.  I thought that Turbo Tax should have shown $1425-$53= $1372.  I also tried putting $0 on L. 13 and entering the $53 as an Adjustment, Item B. Bond Premium.  This had no impact on the amount on L.2a of Form 1040.

There were also 5 imported 1099-OID's.  3 of them showed L.11 Tax-Exempt OID as $23.34,$9.82, $4.19 and L.6 Acquisition Premium as $23.34,$9.82,$4.19.  The L.6 entries were Not Reported to the IRS.  These total to $37.35.  After importing this into Turbo Tax Deluxe, I put 0's on L.6 and entered the 3 L. 6 amounts as Adjustments as Item P. Acquisition Premium since these were NOT Reported to the IRS.  Regardless of whether I entered these on L.6 or as an Adjustment, nothing changed on Form 1040, L.2a.  There were no other entries on the 1099-OID's.  The other 2 1099-Oid's only had Tax-Exempt OID of $7.28 and $22.68 that was NOT Reported to the IRS.  These were entered into L. 11 Tax-Exempt OID.  I was under the impression that neither of these would have any effect on the amount of Tax-Exempt Interest that is reported on Form 1040, L.2a as OID for Tax-Exempt Bonds merely affects the Cost Basis of the bond but has no effect on current year Tax-Exempt Interest that is reported on Form 1040, L.2a.

What is the correct # that should be on Form 1040, L.2a?  How do I enter the raw information into Turbo Tax so that the amount on Form 1040, L.2a will be correct?  Please explain this.  Does the software need to be corrected?

[marciswann]

As I have done for the past 10 years, I used TurboTax to file my taxes for 2020. At the end of January 2021, TurboTax had calculated a refund of $3146 from the IRS.  I happily filed my taxes and was notified that the IRS had accepted them on Feb 12, 2021.  On March 17, 2021, I received my Federal refund - of only $!946!  Today, March 19, 2021, I received a letter from the IRS explaining the reduction of my refund. I pulled up the tax file I had created in TurboTax to see where I had made a mistake. I found that by going through the Recovery Rebate section, the software RECALCULATED  my refund to $1946. I am not happy with TurboTax, and I won't be using it next year.

[VolvoGirl]

Apparently you didn't fill out the Recovery rebate credit section right.  Did you see the screen with 2 boxes to enter the amounts you already got?  Then Turbo Tax calculates if you qualify for any more.  You should have noticed you had a large amount on line 30 claiming more stimulus.   

[VolvoGirl]

@marciswann  I missed you said you got 1946.  I though you only got 946.  So you were 1200 short?  That could be for the first Stimulus if you are Single or the second one if you are married.  Did you get the second 1200 after you filed?  The IRS has been adjusting returns that claimed it but the IRS already sent it.  

[Mick999]

Appears to be an error when entering a Roth IRA contribution.  Turbotax is increasing the federal tax refund. It should no do that.  See quote below:

"Roth IRA Versus Traditional IRA Because Roth IRA contributions are not tax-deductible, it means that contributing to a Roth IRA will not increase your tax refund. "

[Fred Schmitt]

I just did the 2020 taxes for my daughter & it allowed the Box 8 on the W-2 to be treated like deferred income.  Looking back, I find that in 2017 & 2018 that Box flowed to additional tax owed, so I will go back & amend those returns.

Bottom line ... looks as if TT has fixed this bug for this year.

UNFORTUNATELY, it did not tell us the bug existed for the previous years.. 

[Fred Schmitt]

I just did the 2020 taxes for my daughter & it allowed the Box 8 on the W-2 to be treated like deferred income.  Looking back, I find that in 2017 & 2018 that Box flowed to additional tax owed, so I will go back & amend those returns.

Bottom line ... looks as if TT has fixed this bug for this year.   

UNFORTUNATELY, it did not tell us the bug existed for the previous years.. 

[Dave843]

Illinois Schedule M -- Line 22 -- I need to exclude federal agency interest from total interest as reported on 1099's.  This entry has worked in prior years, but this year line 22 is non-functional so far -- can only do an override which still leaves an error notice and doesn't incorporate the value into calculated tax.  Other lines on Schedule M appear to be available (tan shaded).

Also, the step-by-step didn't get me to this input this year.

Looks like an omission.

[croegner]

How do I correct an error in the TurboTax calculation that assessed an estimated tax penalty of $6 on this years  1040-SR, line 38?   $2,000 of my 2019 tax overpayment was applied to my 2020 tax liability and excess estimated tax payments were made during the year (once when I converted an IRA amount to a ROTH and again in the 4th quarter when I received a fairly large one time capital gain). 

This years Withholding and Estimated Payments have resulted in a 2020 overpayment exceeding $4,000 and I am again applying $2,000 of the overpayment to our 2021 tax liability.

What is the basis of the TurboTax estimated penalty calculation for 2020? 

[mesquitebean]

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@ croegner wrote:

How do I correct an error in the TurboTax calculation that assessed an estimated tax penalty of $6 on this years  1040-SR, line 38?   $2,000 of my 2019 tax overpayment was applied to my 2020 tax liability and excess estimated tax payments were made during the year (once when I converted an IRA amount to a ROTH and again in the 4th quarter when I received a fairly large one time capital gain). 

This years Withholding and Estimated Payments have resulted in a 2020 overpayment exceeding $4,000 and I am again applying $2,000 of the overpayment to our 2021 tax liability.

What is the basis of the TurboTax estimated penalty calculation for 2020? 

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No one can know anything specific about "your" return in a user community forum, since obviously no one can see your return (and do not post it here! this is a public Internet forum).   But this can indeed happen.   In general, one can have an estimated tax penalty if any one quarter is short of the required installment, even if there is a large overpayment for the whole year when all the payments are added together.

The best way to see what is happening is to look at the Form 2210 to see how the penalty was calculated.   We can tell you how to view it.

Are you using Online TurboTax or desktop software (CD/download)?  

If desktop software, then you have the benefit of Forms Mode where you can view the Form 2210.

If you're using Online TurboTax, have you already paid for it?   If so, you have full printing privileges, and we can tell you how to do it.    If you haven't yet paid, we can tell you how to pay in advance to have printing privilege.

NOTE:  I also left you an ADDENDUM in my next comment following this one.

[mesquitebean]

@ croegner 

ADDENDUM

You said you had a couple of quarters with unexpected income and that you increased your estimated tax payments for that, but that still could have left a quarter short.   In addition to the info I left you above, if your 2020 income varied widely throughout the year, one can use the annualized income installment method to figure the penalty if it reduces or eliminates your tax penalty.   That involves adding Schedule AI to the Form 2210.    That's a lot of work for a $6 penalty, however, but it can be done in TurboTax, if desired.

I'm a fellow user, not a tax person, so any more info on that annualized installment method would have to come from someone else.

[mesquitebean]

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@ Dave843 wrote:

Illinois Schedule M -- Line 22 -- I need to exclude federal agency interest from total interest as reported on 1099's.  This entry has worked in prior years, but this year line 22 is non-functional so far -- can only do an override which still leaves an error notice and doesn't incorporate the value into calculated tax.  Other lines on Schedule M appear to be available (tan shaded).

Also, the step-by-step didn't get me to this input this year.

Looks like an omission.

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If it won't let you make an entry, it possibly means it is supposed to come from a worksheet or some other form.  If you're using the Windows version, you can right-click the stubborn data field and see if a popup menu lets you look at "data source" to see where it flows from.   I don't know if that feature is available in the Mac version.

Otherwise, for the specific issue on an Illinois return, you'd have to see if anyone is familiar with it and responds here, but this is a long cluttered thread on multiple issues, so the chances are less of it being addressed here in this mixed thread, and it could get lost among the multitude.  If you don't get a response here in this thread, you can start your own new thread with that issue in the title, and someone may be more likely to see it and respond.  Most of the tax experts are active in the forum during the day.   If not, we can tell you how to phone TurboTax Support.

[mesquitebean]

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@Mick999 wrote:

Appears to be an error when entering a Roth IRA contribution.  Turbotax is increasing the federal tax refund. It should no do that.  See quote below:

"Roth IRA Versus Traditional IRA Because Roth IRA contributions are not tax-deductible, it means that contributing to a Roth IRA will not increase your tax refund. "

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You're less likely to get a response in this long cluttered thread with many users with multiple issues, but I see you did start your own new thread on that topic, which is good, since with a new thread it is more visible and more likely to attract a person familiar with it.   I see your other thread has attracted a tax expert and has an answer.    See if that resolves your issue.   If you need to continue the discussion, you may wish to continue it in that thread.  It's at this link:

https://ttlc.intuit.com/community/retirement/discussion/why-does-fed-tax-refund-increase-when-i-make...

[LD92]

Iowa 2020 Schedule A...  Using TurboTax Premier for Mac... Iowa instructions for Schedule A Line 4 indicate cannot take a "General Sales Tax" deduction on your Iowa Return unless on your Federal Return you used Schedule A and itemized this deduction there also.  On my Federal Return I used the "standard deduction", however on my Iowa Return Schedule A TurboTax included the "General Sales Tax" deduction.  Is this an error ??

[ClaudeB60]

When I input data from T4A I received for CRB financial assistance in Turbotax i filled in box 200 for the amount of $1530 and in box 22 I entered $153, the amount of tax deducted.  when i completed my taxes, an error message kept coming up saying that you must "'fix error in T4A. Reporting income tax deducted without any income.'"  I go to the fix but nowhere does the amount from box 200 come up.  So it states that I cannot netfile and must mail my return.  I have been netfiling for years.  It seems in the review page, it only shows the amounts from box 14 and 22 for the T4A but doesnt show box 200 where the income is.  Yet in the forms method it does.  Is this a glitch and if so when can i get a message saying that its been corrected so that I can continue to netfile?  CRA does not have a drop box due to covid and I dont want to pay to mail th return.