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The deduction for unemployment compensation is the lesser of $10,200 or the amount of unemployment compensation received. In other words, this deduction cannot exceed the amount on Schedule 1 line 7.
The amount of unemployment compensation was greater than $10200 and the taxable earnings were $1000 higher than they should have been based on the information supplied by TurboTax.
My wife works for local university and does not pay social security taxes. I have some w2 and 1099 self employment income. When I add her w2 to my return it looks like it is trying to take out the 12.4% social security tax as the amount owed increases greatly.
hlynnjr, do you have $1,000 of other Other Income that when added to -$10,200 brings the total of Other Income to -$9,200?
you do owe 12.4% on the 1099 and TT will adjust for that.... are you saying that TT is also adding 12.4% for your wife's W-2? it's not clear what you are stating.
does it "look like" or is it? what was the change in the federal tax refund / amount owed divided by her Box 1 on her W-2 before and after you entered the W-2. The result should be your marginal tax bracket.
17.2% is the difference of amount owed divided by box one.
The other income should have been offset by losses so that could be the issue, TurboTax is not including losses in the calculation or I did not enter them. Thanks
The other income was offset by losses that were enter and listed on the income screen as a net $.00 of other income. If that is being deducted from the $10200 on the worksheet then that is an error. You cant have a net zero of other income and then take $1000 from the $10200, None of this makes sense.
It would be nice if TurboTax would allow you to review the forms before you pay and file.
Frustrating
You can view everything after paying but before filing.
The desktop and online versions of Premier are calculating the sales tax deduction differently. I used the Easy option which reviews your income and estimates sales tax. The estimation is coming up a little differently reducing my refund using the desktop version. I'd like a refund for the purchase of the desktop version or a fix to this issue.
@foxinsox wrote:The desktop and online versions of Premier are calculating the sales tax deduction differently. I used the Easy option which reviews your income and estimates sales tax. The estimation is coming up a little differently reducing my refund using the desktop version. I'd like a refund for the purchase of the desktop version or a fix to this issue.
Someone might make a suggestion in this thread, or it might be easier for someone to help you troubleshoot in a realtime conversation with Support. In any case, you've posted in a 10-page cluttered thread with multiple users with various issues. So your question may be less likely to be seen here. You could start a new question thread of your own, if you like, with that issue in the question title, and it might catch the eye of someone who can comment on it.
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@hlynnjr - on the desktop version you can review the forms becayse you have already paid for the software.
Think about it, if online users could review the forms before paying, why would they pay at all? just copy all the information to a paper copy and file.
Actually, I know it appears convoluted, but the way the IRS designed the form to adjust the $10,200 is convoluted, but the negative number is possible!
this is the form; you might walk through it manually.
if you can't see the forms, then this will be difficult.
On the other hand, TT does guarantee the computations are accurate. if they are not, you will not be liable for any penalties or interest. I haven't seen any other threads with folks complaining that the numbers are inaccurate, if that is any comfort.
Thanks for the feedback and yes it can be convoluted.
I understand the IRS decided to use the -10,200 as an offset to unemployment earnings, however I had $1000 in gambling winnings offset by gambling losses of $1000 - NET $0. Even on the WAGES & INCOME SCREEN they list Gambling Winnings as ZERO.
Then on the FINAL REVIEW SCREEN it shows a -9,200 Other Income which I am assuming is the unemployment exemption less another $1,000. It appears to me that I had to have $1000 in gambling losses and forfeit $1000 of the unemployment exemption to offset the $1000 gambling win. This can't be right.
I will just pay the extra taxes on the extra $1000 in income calculated by TurboTax and ask the IRS later why it is being handled this way. Thanks again!
@hlynnjr wrote:
Thanks for the feedback and yes it can be convoluted.
I understand the IRS decided to use the -10,200 as an offset to unemployment earnings, however I had $1000 in gambling winnings offset by gambling losses of $1000 - NET $0. Even on the WAGES & INCOME SCREEN they list Gambling Winnings as ZERO.
Then on the FINAL REVIEW SCREEN it shows a -9,200 Other Income which I am assuming is the unemployment exemption less another $1,000. It appears to me that I had to have $1000 in gambling losses and forfeit $1000 of the unemployment exemption to offset the $1000 gambling win. This can't be right.
I will just pay the extra taxes on the extra $1000 in income calculated by TurboTax and ask the IRS later why it is being handled this way. Thanks again!
Gambling losses are not a one-to-one offset of gambling winnings. Losses are entered as a Miscellaneous itemized deduction on Schedule A. If the total of all your itemized deductions are not greater than the Standard Deduction for your filing status then only the Standard Deduction is used. Your $1,000 of gambling winnings is entered on your tax return as ordinary income.
So the result appears to be that you are getting the entire $10,200 excluded, resulting in a net Other income of -$9,200 when combined with your gambling winnings, all correctly reflected on Schedule 1.
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