Re: Form 8960 Error caught by IRS - line 13 modified adjusted income incorrect.

rmilling3165 · Apr 29, 2023 10:08:51 AM

<P>I filed my dads 2022 1040SR last month and he just received a letter from the IRS. He had $208000 of adjusted gross income (2400 interest income, 80 dividends, 12000 taxable social security and 194,000 capital gain on the sale of investment real estate). On the original return turbo tax simply took his adjusted gross income of $208,000, deducted the 200K limit for his filing status (head of household) and computed the net investment tax of $316. Now it appears the IRS is saying his social security should not have been included in his modified adjusted gross income (and per my research on the IRS website this appears correct. He is getting a refund for his net investment tax of $316. I looked at the return on turbo tax and line 13 (modified gross income) has his total adjusted gross income from line 11 1040 SR. It was not forced by me but put in by the program. I just wanted to point out this error because I see other issues with Form 8960 that people are having. I thought turbo tax was guaranteed to be correct.</P>