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DaMaVa
Returning Member

How to I get help with question on a TurboTax calculated error? They calculated a credit for income tax imposed by another state, and they should not have.

The Michigan instructions state "Include only income tax paid to another government unit(s)
on income earned while you were a Michigan resident and
taxed by Michigan."  I was a part year resident of CA and the income was only taxed by CA.
7 Replies
Critter
Level 15

How to I get help with question on a TurboTax calculated error? They calculated a credit for income tax imposed by another state, and they should not have.

I can almost guarantee this was a user data entry error ... 

 

If you purchased Audit Defense for your tax return, call Tax Resources, Inc. at (877)-829-9695, or report your notice on their web site at http://intuit.taxaudit.com/. Do not contact the IRS. Let Tax Resources contact them for you.

This is the membership email you should have gotten:  https://ttlc.intuit.com/questions/1901569-when-will-i-get-my-audit-defense-membership-kit

Also read the member agreement at this website -https://turbotax.intuit.com/corp/auditdefense.jsp

                                                
If you did not purchase Audit Defense:


TurboTax has a special phone number for help with IRS tax letters, which will be easier than going through regular Customer Support.   At the page below, click on the blue button that says "Get Help from TurboTax Support".  Then it will ask you what tax year is your letter.  Then it will ask you what the letter concerns. Then it will show you the phone number during posted business hours.

https://support.turbotax.intuit.com/irs-notice/audit-support/

DaMaVa
Returning Member

How to I get help with question on a TurboTax calculated error? They calculated a credit for income tax imposed by another state, and they should not have.

I checked.  My W2 is from California.  I entered the correct time periods for CA and MI residency.   The MI 1040 instructions state:  

Line 18: Income Tax Imposed by Government Units Outside
Michigan. Include the amount of income tax paid to:
• A nonreciprocal state (see page 6)
• A local government unit outside Michigan, including tax
paid to local units located in reciprocal states
• The District of Columbia
• A Canadian province.
Include only income tax paid to another government unit(s)
on income earned while you were a Michigan resident and
taxed by Michigan. 

 

I was not a Michigan resident, and Michigan did not tax my income when I earned income in CA.

 

When I try to call the support number, I end up getting hung up on, because they can't find my account.  My online account is showing the correct phone number and email address, which is the info they have asked for.  I do not have any paid support, but need to know how to change the online forms so I can print out an amended return.

DoninGA
Level 15

How to I get help with question on a TurboTax calculated error? They calculated a credit for income tax imposed by another state, and they should not have.

@DaMaVa 

See this TurboTax support FAQ for amending a 2018 tax return originally completed and filed using the TurboTax online editions - https://ttlc.intuit.com/community/tax-topics/help/how-do-i-amend-my-2018-turbotax-online-return/01/9...

 

When contacting support try using the Audit Support Center website to speak with an agent - https://support.turbotax.intuit.com/irs-notice/audit-support/

 

Otherwise use the TurboTax contact website and for your product edit it to show CD/Download and for the edition use Deluxe - https://support.turbotax.intuit.com/contact/

On the following screen enter your information and then click on the button labeled Get Phone Number

 

If all else fails use these web pages -

Support can also be reached by messaging them on these pages https://www.facebook.com/turbotax/ and https://twitter.com/TeamTurboTax

Anonymous
Not applicable

How to I get help with question on a TurboTax calculated error? They calculated a credit for income tax imposed by another state, and they should not have.

it seems you were a part year resident of two states and therefore should have file 2 part year resident returns.  one for each state. in such case neither state would grant any credits for income tax by other state.   it would seem that somehow you indicated you were a full year resident of one state and a part year or non resident of the other state where you earned income and there were granted credit of the "full year" return  

TomD8
Level 15

How to I get help with question on a TurboTax calculated error? They calculated a credit for income tax imposed by another state, and they should not have.

The "other state credit" applies only to income taxed by both states.

If you literally moved from CA to MI (or vice versa), and changed jobs when you did so with no overlap, then you would have no double-taxed income.  In that situation you would file two part-year-resident returns.

If that's what happened, check your entries in the My Info section of TT and make sure they are correct.   Make sure you allotted your income correctly to each state, and make sure you answered No to the question about Other State Income.

But if you did not move from one state to the other, but instead went to one of the states temporarily for school or work while keeping your main home unchanged, then most likely you would be a non-resident of the "temporary" state while still being a resident of your home state.  In that situation you might well have double-taxed income.  And you would file one non-resident return and one resident return.

A part-year resident is someone who has literally moved their domicile (their permanent home) from one state to another.

**Answers are correct to the best of my ability but do not constitute tax or legal advice.
DaMaVa
Returning Member

How to I get help with question on a TurboTax calculated error? They calculated a credit for income tax imposed by another state, and they should not have.

Yes, I was a part year resident of both states, and that was clearly indicated.  I reviewed all my online entries.   The date ranges and income allocation were correctly reported on both states' forms.   The only error was taking the credit in Michigan (line 18 on MI 1040).  The CA income was subtracted in Subtractions on Schedule 1, Line 13, so no tax was paid.  If I had been a Michigan resident with CA income, I would have had to pay MI tax on the income and used the credit because I would have also paid taxes in CA, but then I wouldn't have subtracted the income on Schedule 1.  Get it?

 

I suspect the bug was due to a married filing where one was part year and one wasn't.  

 

I finally got someone on the line (attempt 5) when I said I used the CD/Download.  Thank you for that tip.  The person I spoke with sent me software to download which wouldn't work on my Chromebook.  The online system isn't updated to do 2018 amended returns.  Her final solution was to do nothing since it wasn't an error that the state caught.  (I think the state calls that fraud.)  So I filled out the forms manually.  Luckily, I only owe $47 dollars -- $61 with interest and penalty, because Michigan disallowed the original refund.

 

I'm done with TurboTax.

 

BTW, I am a finance professional, took an HR tax preparer class 30 years ago, did my own taxes and several others for 25 years, and generally use free tax software in order to e-file.  I used paid Turbo Tax this year, because I am not educated on CA taxes having lived there for less than a year.  Luckily, I know Michigan tax forms, have filed partial residence 3 other times, and was able to figure this out pretty quickly.  

 

You can tell yourself this is user error, but it wasn't.  I hope you look into it.

Critter
Level 15

How to I get help with question on a TurboTax calculated error? They calculated a credit for income tax imposed by another state, and they should not have.

What is the TurboTax 100% Accurate Calculation Guarantee?

In plain English, if you pay an IRS or state penalty or interest because of a TurboTax calculation error, we'll pay you the penalty and interest.

 

For complete details, see our Intuit Software End User License Agreement (look about 2/3 of the way down the page, under the heading TurboTax Accurate Calculation Guarantee).

 

You can read the fine print at the Intuit Software End User License Agreement for TurboTax Desktop Software or the End User License Agreement for TurboTax Online. Enter accurate calculation in the Find feature in your browser (usually listed under Edit) to go to it quickly.

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