How do I report TurboTax Software Errors?

[BillBee1935]

I am doing a preliminary run for turbotax 2021 to get an estimate for amount of 4th estimated federal tax payment.  On the page that showed me a summary of my 2020 income.  It showed 10.9% of my social security income as taxable and 89.1% as nontaxable.  I know that is not correct.  Are you aware of any other complaints of this error?

[xmasbaby0]

@BillBee1935 

We cannot see your screen so we have no idea what other income you have entered into the software so far.  The results and calculations cannot be relied upon until the software has had all of the updates it will need in the next couple of months.  

TAX ON SOCIAL SECURITY

Up to 85% of your Social Security benefits can be taxable on your federal tax return.  There is no age limit for having to pay taxes on Social Security benefits if you have other sources of income along with the SS benefits.  When you have other income such as earnings from continuing to work, investment income, pensions, etc. up to 85% of your SS can be taxable.

 What confuses people about this is that before you reach full retirement age, if you continue working while drawing SS, your benefits can be reduced if you earn over a certain limit. (For 2017 that limit was $16,920 —for 2018 it will be $17,040—for 2019 it will be $17,640— for 2020 it will be $18,240)  After full retirement age, no matter how much you continue to earn, your benefits are not reduced by your earnings; your employer will still have to withhold for Social Security and Medicare.

https://ttlc.intuit.com/questions/1899144-is-my-social-security-income-taxable

https://www.irs.gov/help/ita/are-my-social-security-or-railroad-retirement-tier-i-benefits-taxable

You need to file a federal return if half your Social Security plus your other income is $25,000 when filing single or head of household, or $32,000 when filing married filing jointly, $0 if you are filing married filing separately.

Some additional information:  There are 13 states that tax Social Security—Colorado, Connecticut, Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, North Dakota, Rhode Island, Utah, Vermont, and West Virginia.  These states offer varying degrees of income exemptions, but four mirror the federal tax schedule: MN, ND,VT, and WV

[VolvoGirl]

@BillBee1935   Why do you think it is wrong?   And it is too early in the year for the program to be fully functionable.  I think the 1099R section isn't up to date.  

Your SS taxable income will change based on your other income.  

Up to 85% of Social Security becomes taxable when all your other income plus 1/2 your social security, reaches:
Married Filing Jointly: $32,000
Single or head of household: $25,000
Married Filing Separately: 0

Are you using the Online version or the Desktop program?  If you are just doing estimates you can enter any amounts you want to make it come out close.  If you are using the Desktop program you can enter amounts directly on the Forms.  

[Denny007]

CARES allows a charitable deduction in addition to standard deduction.  I am taking the standard deduction but when I input my charitable deductions, they to not carry to form 1040 item 10b.  I believe I have done everything correctly.  Would you please check this and correct if necessary.  Thanks.

[macuser_22]

@Denny007 until you are totally done with the deductions & credits section and TurboTax gives you the screen saying that it has selected the standard deduction,   it will not change.   Until you have entered all possible deductions, it can not be determined if that will apply or not.

[Denny007]

Your are absolutely right.  Thanks.

[bermanbi]

When using the current (2020) version of TurboTax, I entered the amount of stimulus payment I received in 2019.   It was not the full amount.  Although it should have been.  I believe I am entitled to claim the balance as a credit on my 2020 return.  Turbo Tax looks at the amount I received and calculates the amount I was entitled to based upon my 2020 AMI.   This is incorrect.  The amount should be calculated using my 2019 AMI.

[VolvoGirl]

No.  The first Stimulus Check is really based on 2020 tax return. Any amount you already got will be reconciled on your 2020 return line 30. If you didn't get a Stimulus Check (and qualify) or you qualify for more it will be added to your 2020 return. But the good news is if they paid you too much they won't take it back.

[bermanbi]

I believe you are incorrect.  The first round of stimulus checks was to be based upon either your 2018 or 2019 AMI.   It had nothing to do with 2020.

[VolvoGirl]

You will get any extra Recovery Rebate Credit based on your 2020 return, see
https://www.irs.gov/newsroom/recovery-rebate-credit

It says………The Recovery Rebate Credit is figured like the 2020 Economic Impact Payment, except that the credit eligibility and the credit amount are based on the tax year 2020 information shown on the 2020 tax returns filed in 2021.

[xmasbaby0]

It is AGI.    And it has everything to do with your 2020 income.  They used 2018 or 2019 to issue those checks because there was a huge rush to get them out.  But the stimulus is an advance on a credit based on your 2020 tax return.  If they gave you too much for the 1st check you do not have to pay it back.  But when it is reconciled, they will use your 2020 income.

The stimulus check is an advance on a credit you can receive on your 2020 tax return.  If something went wrong or you did not get the stimulus check this year, you can get it when you file your 2020 return in early 2021—if you are eligible.It will end up on line 30 of your 2020 Form 1040.

https://www.irs.gov/newsroom/economic-impact-payment-information-center-topic-j-reconciling-on-your-...

https://www.irs.gov/coronavirus/coronavirus-tax-relief-and-economic-impact-payments-for-individuals-...

https://ttlc.intuit.com/community/tax-topics/help/how-will-the-stimulus-package-impact-me/00/1393859

We know that the IRS is already revising the 2020 Form 1040 to include the 2nd stimulus, but that change will entail a lot of re-programing at the IRS and for the tax software programs.  It may be at least a month — or longer— before the forms are changed.  Do NOT be in a hurry to file your 2020 tax return until more is known. Give some extra time to the IRS and the software programmers so that the software can handle the new 2nd stimulus, so that you can get it all by filing ONE time.  It is never a good idea to file too early; filing your 2020 return too soon may result in a lot of extra confusion that can be avoided if you wait and file a little later.

[VolvoGirl]

@bermanbi   What are you referring to as AMI?  It is AGI for Adjusted Gross Income.  

[cmranne0]

I see simple errors in 2019 and 2020 business comparisons. Last year net profit $-142. This year Net Profit $695. The error is that it reports in the online chart the "difference is $837." WRONG!

Lost confidence in this program to do my taxes. :'(

[cmranne0]

Also clicking trash can on right when something doesn't apply takes you to the area to complete it and makes you put in a $0 instead of just deleting it!! >.<

[VolvoGirl]

A negative 142 plus a positive 695 IS $837.