NY State tax calculation error 2023

Forum|Forum|2 years ago
March 12, 2024
4 replies
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I e-filed my NY State taxes and got a letter from them which stated that:

1. They adjusted amount allowed as total itemized deductions on form IT-196 based on limitations, worksheets and information I reported on the form.

2. I claimed an itemized deduction on return that used the incorrect income limitation required under the Tax Law.

3. The taxable income reported reflected a computational error based on information reported on return

4. NY State tax reported reflected a computational error based on the NYS AGI and taxable income reported

5. Adjusted refund to reflect the computation as indicated above.

Is this a software error? It reviewed and check my forms twice before I submitted it. It was a $41.89 error.

AmyC

Level 15

You will need to make a claim, see How to submit documentation for accuracy guarantee claims.

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Jwl371

Level 2

I had the same error with the exact same language- Line 34- NYS stated my standard deduction would be $500 or so less than turbotax calculated. My error ended up being just over $30

I am trying to research where NYS is finding their maximum deduction from- I can see how turbotax calculated it and that appears correct- but there is some NYS law that overrides it

AmyC

Level 15

NY Itemized deductions (2023) - Tax.NY.gov. I would like to take a deeper look at this. However, I need a diagnostic file which is a copy of your tax return that has all of your personal information removed. Please notify me by adding @AmyC to your response. If I discover a solution, I will reply. Otherwise, it will be moved on to an investigation team.

You can send a token to me by following the directions below:

TurboTax Online:
Sign into your online account.
Locate the Tax Tools on the left-hand side of the screen.
A drop-down will appear. Select Tools
On the pop-up screen, click on “Share my file with agent.”
This will generate a message that a diagnostic file gets sanitized and transmitted to us.
Please provide the Token Number that was generated in the response.

TurboTax Desktop/Download Versions:
Open your return.
Click the Online tab in the black bar across the top of TurboTax and select “Send Tax File to Agent”
This will generate a message that a diagnostic copy will be created. Click on OK and the tax file will be sanitized and transmitted to us.
Please provide the Token Number that was generated in the response.

@ari11210 @Jwl371

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AmyC

Level 15

Hi @AmyC

I am having the same issue, however it resulted in a $1400 difference between the TurboTax calculated tax amount and the NYS amount. Going through the notice, while NY showed a slightly higher AGI, about $300, than TurboTax, the difference on the calculated tax amount on income (line 38) was $1400 higher than TurboTax. I’ve looked through the tax worksheets provided by NYS but I get to a total that is different from both TurboTax and NYS, and am trying to understand the difference before I file a response.

Thanks

For the tax amount, I am sure you need to use the NY tax worksheets rather than the tax table.

@Corpulence

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ari11210

Level 2

I got the same letter from NY State, my difference was also about $41

TaxNovice24

Level 2

I also got the same letter! NY IRS is stating line 33 in IT-203 was computed incorrectly by TurboTax. Line 33 is coming from Line 49 of IT-196, which is where a discrepancy between Turbo Tax and NY IRS is happening. This resulted in adjusting my refund and eventually owing more NY tax than originally computed by Turbo Tax.

I’m also stumped on how/what computational error is being caused by Turbo Tax.

I opned a Turbo Tax accuracy guarantee claim but since I didn’t pay any fines/penlaty, there isn’t any help. @AmyC I can share the case number if you would like to investigate.

Can someone from Turbo Tax community please acknowledge

/investigate what and why calculation error is going on for NY state tax, specifically on how Form IT-196 is being calculated. Thanks!

AmyC

Level 15

Thanks for the extra information. I have gone back through the NY return itemized deductions for line 33, using the IT 196 instructions. I am using an actual return that received a letter. In the program, we have the It-196 and the line 40 (Item Dedns Wks) worksheet. We don't have line 41worksheet 2 or line 47 worksheet 3 so I did them manually and still got answers matching the IT-196 generated by the program.

I can't determine where the issue lies between NY and TurboTax calculations as ours seem to match the instructions.

@TaxNovice24

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TaxNovice24

Level 2

@AmyC in my case, IT-196 has entry for lines 5,6,9,10,15,16,19,40,41,42, 45,46,47 and 49; fairly generic deductions. NY IRS difference is about $100 for line 47. I called the Tax office for more information on how line 47 was computed but they didn’t give any details. Since the discrepancy is not significant, I’m not going to dispute this.

I am at loss as how NY IRS is doing these calculations and seems like quite a few Turbo Tax customers are experiencing this same calculation in issue.

My Accurate Guarantee Claim #36165, if you want to look at details.