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gowin09
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Incorrect calculation of "other taxes" on line 23 of 1040 in 2020 tax forms causing more tax to be paid

I generated the tax forms after completing all the information with no error during "smart check". In form 1040, line 23 have an amount of "$2831" entered. This same amount was reflected in "Additional Taxes - Schedule 2, line 10". However, in schedule 2, only line 8 is filled with "$2831" and indicate taxes from "Form 8959" and "Form 8960" checked. 

 

In form 8959, the total additional medicare tax withholding on line 24 is $1093 which is also entered on line 25c of form 1040. 

In form 8960, part III, line 17 only reflects $388 as "Net investment income tax for individuals". 

 

So, with these only two forms included in Schedule 2 and the amounts doesn't tally up to $2831, I am not able to move forward with filing since it would result me in overpaying $2831 to IRS. 

 

I looked into all other worksheets and forms that Turbotax generated right before I file and I couldn't come up with any answer that explains these numbers at all. 

 

Appreciate if any guidance can be provided on how Turbotax came up with this bizzare $2831 in first place along with right references linked to these in schedule 2 line 8.

 

Thanks

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1 Reply

Incorrect calculation of "other taxes" on line 23 of 1040 in 2020 tax forms causing more tax to be paid

you don't understand form 8959.

 

8959  line 18 is the additional medicare tax you owe  (probably $2443). this flows to schedule 2 line 8 and thus increases the taxes you owe.  *($2443 + $388 from form 8960  = $2831 that's showing up on schedule 2 line 😎

 

8959 line 24 is the actual additional medicare tax withheld.  this flows to 1040 line 25c and thus decreases the taxes you owe

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