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New Member
posted Jan 23, 2024 3:45:04 PM

Incorrect interest income tax calculation in Turbotax Premier 2023?

I just noticed what seems to be an error  for interest and dividend income taxes  in Turbotax Premier 2023 Version 023.000.0375. After entering a 1099-INT I noticed the federal refund value changed by an amount of 33% of the entered interest income  instead of 22% which is the the tax due for the correspondent bracket. It is something I always checked in the previous versions as I entered the forms and never had an issue before (2021,2022). I entered a new 1099-INT and observed the same situation, similar errors for 1099-Div (33% for ordinary, 25% for qualified instead of 22% and 15%). Is there a place to report this kind of issues? has someone seen the same issue?

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1 Replies
Level 15
Jan 23, 2024 3:52:54 PM

When you enter one taxable transaction, you can't just watch the monitor.  You increased your overall adjusted gross income and with that come many other changes in your return, not just the incremental tax on the one transaction.

 

Like for example it increased your AGI and that would decrease some deductions if you itemized on Schedule A.  And by increasing your AGI it might reduce some credits you were getting like EIC.  And can make more of any Social Security taxable.

 

I once added $6 in interest and the tax went up $12! It pushed me into the next tax bracket. I was right at the line.