State Taxes on Federal Form Schedule A is wrong?

[StarGirl18]

Does anyone know what Turbo includes in Wisconsin State Taxes.  I enter the withholdings on all 1099's, W-2s, the estimates sent in for 2024 in 2024, the 2023 carryover, as well as the 2023 estimate that was paid in Jan 2024, and I went over it many times thruout the software, and my Schedule A shows a higher amount.  I am using the desktop version.  Since Schedule A (state taxes) in the Fed form is wrong, I assume my state return will be all wrong as well.

[rjs]

Are there any mandatory state taxes in W-2 box 14? That would be included. If you had a refund on your 2023 state tax return there's also a complicated calculation on the State and Local Income Tax Refund Worksheet that can result in part of that refund being included in Schedule A line 5a.

Schedule A line 5a comes from line 1h on the Tax and Interest Deduction Worksheet. Open the Tax and Interest Deduction Worksheet in forms mode. Right click the amount on line 1h and select Data Source from the pop-up menu. It will give you a list of everything that's included, with links to where the amounts come from.

[StarGirl18]

rjs, Thank you for responding.  I am looking for that refund worksheet in Turbo.  I know I did it but finding it in the software again is difficult.  Is it in the state section? I did receive a refund last year, but I carried it over to 2024.  Any clue on that? So I wasn't sure to fill it or not, and then it continues with these complicated questions you mentioned above, total all your withholdings, now are they saying 2023 or 2024 holdings because they are talking about the 2023 refund, it is not clear.  It continues totaling this and that and I am suppose to do this calculation totaling, which is why I bought Turbo so I could just fill in the blanks and let the software do the totaling. That whole section is not clear and not written well.

[StarGirl18]

rjs, Wow, thanks, but I checked the Tax and Interest Deductions worksheet and everything is correct on that sheet. So why is there $200. more on Schedule A? Now I did make a estimate for the 2023 taxes in Jan. 2024, but it was bigger than $200 and according to Turbo it won't be counted in 2024.  This is so weird.  Could there be a glitch in Turbo? I am thinking of changing Schedule A to the right amount that is on the worksheet, and hope I don't mess something else up somewhere else, but my curiosity how that $200 got there won't let me until I solve it.

[KeshaH]

If you'd like, we can look at your return and see exactly what you see to  help come to a resolution. The return will be scrubbed and won't include any of your personal details.

If you're using TurboTax Online:

Once you're logged in to your account,

- on the left hand panel, click on Tax Tools and then choose Tools

- on the pop up window, select Share my file with Agent

- you'll see a message saying you'll give us a copy of your tax return. Your personal information will be changed so we can't see any private information.

- click okay and you'll get another message with a token

If you're using TurboTax Desktop:

• Click on Online in the top menu of TurboTax Desktop for Windows
• Select 'Send Tax File to Agent'
• Write down or send an image of your token number and state then place in this issue.
• We can then review your exact scenario for a solution

Please reply to this message with your token so that we can further assist you. Let us know all other states, if any, that are included on the return.

@StarGirl18 

[VolvoGirl]

@StarGirl18   I assume you are asking about Schedule A on your federal return.  Yes the Jan 2024 estimated payment you made for 2023 IS INCLUDED on the Federal schedule A since it was a state tax payment made in 2024.  Also if you made a 2024 state estimated payment in Jan 2025 it won't be included on Schedule A. 

So for schedule A you need to add the Jan 2024 state estimated payment and  subtract the Jan 2025 payment.  So just payments actually made in 2024 no matter what year they are for.  And did you pay a state tax due in 2024 for your 2023 return?  That goes to schedule A too.  

[StarGirl18]

VolvoGirl, Thanks for responding.  If Turbo Tax asked me for the Jan 2025 I entered it, if they didn't, well I didn't. And the software does the rest.  But I will check that out.  Even so, my 2025 state estimates is higher than the amount that I am off. I am off only $200 for state taxes paid.

I checked all my 1099's, etc.  I am wondering about this refund in 2023. I entered 0 because I carried it over to the state return in 2024, was I suppose to fill that refund amount in?  The weird thing looking at the Tax information worksheet, it shows the correct amount. So why is that higher in Schedule A?

[StarGirl18]

Figured it out; and I am thinking it was the state refund complicated, terrible Turbo Tax calculation.  But here's another problem if I could have your input I double checked the taxable income line 15 on IRS 1040: it was ok, and then double checked the tax I owe using the IRS tax table from the book and Turbo comes out with a lesser amount. So I had my brother, a bookkeeper, double check my math, and he says I am right.  Do you have any clue where they hide the tax computation worksheet in the software? I am would like to see how they come out with that tax using the same amount I used on line 15.

[VolvoGirl]

It depends on what kind of income you have.  There are like 7 different ways to figure the tax.

See the IRS worksheet on 1040 page 36 for how the tax is figured.  Turbo Tax uses the same worksheet.

https://www.irs.gov/pub/irs-pdf/i1040gi.pdf

Even though it shows up as income on the first page,if you have capital gains or qualified dividends the tax is not taken from the tax table but is calculated separately from schedule D.  The tax will be calculated on the Qualified Dividends and Capital Gain Tax Worksheet.  It does not get filed with your return.

In the online version you need to save your return as a pdf file and include all worksheets to see it.

For the Desktop version you can switch to Forms Mode and open the worksheet to see it.  Click Forms in the upper right (upper left for Mac) and look through the list and open the Qualified Dividends and Capital Gain Tax Worksheet.  And you will need to use this IRS worksheet on page 15.

https://www.irs.gov/pub/irs-pdf/i1040tt.pdf

If you are using the CD/Download software, go to forms mode and open the Form 1040 or Form 1040-SR Worksheet. Between lines 15 and 16 there is a Tax Smart Worksheet with 7 checkboxes. The box that is checked shows you which of the 7 possible methods was used to calculate your tax. Then you can look for the appropriate worksheet for that method. But if the Tax Table or Tax Computation Worksheet was used, there is no worksheet. Those are simple standardized methods that do not require a worksheet.

[StarGirl18]

Thank you so much I will check that out.

[StarGirl18]

Thank you.  You were right. I had qualified dividends.  And I wasn't aware of that worksheet; when I click on the tax amount line 16, there was no datas source.  If it would had went there, I would had realized it.