TurboTax Mistake -

[user17777308086]

We used TurboTax 2025 online to do our tax, ending up with paying $3585 fed tax due.     However IRS corrected our return to refund over $800 after paying the due.

This is what the IRS letter says:
We changed the amount claimed as the Enhanced Deduction for Seniors on your tax return because it was
calculated incorrectly.

So it is obvious that turbotax makes a mistake that probably affects a lot of seniors.     Should turbotax learn the lesson to be penalized by at least refunding the software cost?

[VolvoGirl]

Yours is  the first report I've seen saying the Senior Deduction was too small or was it completely missing?  Maybe they reduced some income and your AGI?  These are the only things I know that can affect it.  Probably the second item.  

Check your date of birth under My Info
Check that your ssn under My Info wasn't marked NOT VALID for employment. 
If you are married you have to file a Joint return not Separate

For Single the deduction starts to phase out at 75,000 and maxes out at 175,000
For Joint the deductions starts to phase out at 150,000 and maxes out at 250,000

[user17777308086]

Nothing is wrong on our side.    Every entry had been checked many times and we paid the due.    I don't recall Turbotax ever checked us with senior discount.

What turbotax does in this case?    Apologies for omitting the important discount and pay back the software cost?

[user17777308086]

Where should we file a complain to human being in TurboTax?    All it does is to make it difficult even talk to a human.

[xmasbaby0]

 You should look at line 13b of your Form 1040 to see if you got the "senior deduction"    

The “senior deduction” is added automatically by the software based on the date of birth and filing status you entered into MY INFO.  You do not need to take any extra steps to enter it. (And…the new senior deduction has nothing to do with whether you are getting Social Security)

The deduction is not on the same line as your standard deduction.  It is shown separately on line 13b.

2025 STANDARD DEDUCTION AMOUNTS

SINGLE $15,750  (65 or older/legally blind + $2000)

MARRIED FILING SEPARATELY $15,750  (65 or older/legally blind +1600)

MARRIED FILING JOINTLY $31,500  (65 or older/legally blind + $1600)

HEAD OF HOUSEHOLD $23,625 (65 or older/legally blind + $2000)

For 2025 through 2028 there is an extra  deduction amount of up to $6000 per individual 65 or older filing Single, MFJ, or HOH which is phased out for taxpayers with modified adjusted gross income over $75,000 for single filers and $150,000 for joint filers.

(The deduction phases out completely at $175.000 Single or HOH, or $250,000 joint)

The $6,000 senior deduction will be calculated on 1040 Schedule 1-A page 2 Part V Enhanced Deduction for Seniors which goes to 1040 line 13b. It is separate and in addition to the Standard Deduction or your Itemized Deductions on 1040 line 12e.  Turbo Tax automatically includes it.

IRS Schedule 1-A
https://www.irs.gov/pub/irs-dft/f1040s1a--dft.pdf

Need to see it?

https://ttlc.intuit.com/turbotax-support/en-us/help-article/tax-return/preview-turbotax-online-retur...

If you are not getting the senior deduction it is because

Your date of birth in MY INFO shows that you were not 65 by the end of 2025

Your income is too high

You are filing married filing separately

@user17777308086

[baldietax]

@user17777308086 if for some reason as yet unexplained Turbotax didn't apply your senior deduction I suppose you can file under accuracy guarantee here tho they usually compensate for errors the other way where it understated your tax owed and you ended up with additional penalty due to underpayment.

https://ttlc.intuit.com/turbotax-support/en-us/help-article/intuit-account-billing/submit-claim-turb...

Not to discount Turbotax screwing up but it's unlikely Turbotax just "missed it" as it's automatically applied based on your data - probably something else is going on with your return, some discrepancy in the data between what Turbotax and IRS knows.  For example, was your date of birth correct.  You could share more details here what is actually happening on your Schedule 1-A and maybe experts here can provide further insight.