TT has made an error in calculating my tax owed. Simple math. I owe about $200 more than TT says. What do I do?

[VolvoGirl]

So can you find where the $3731 Capital Gains Distribution comes from?  Check all your 1099Div, 1099B, and K-1.  Might also be on a 1099R.  

[NCperson]

@BAJJERFAN - go back to the original brokerage house documents and look at the long term section,

the short term losses are netted against the long term gain and the way your taxes were calculated - rightly or wrongly - is that the capital gains is long term. 

What dates did you provide to TT when you entered the data?  it should be very obvious from the brokerage account statement what is long term and what is short term. 

You also mentioned a Trust and a that means a K-1.  what was on that document that could have mapped over to the Long term and Short term section.  what is on Lines 8 and 9a of the K-1, if anything?

did you follow exactly what TT instructed you to do as you entered each document? 

if the gains should have been short term and your tax return reported then as long term, that HAS TO be amended as you have underpaid your taxes, but before jumping to that conclusion, let's go back to the original source documents and determine where the short term and long term information comes from

lastly, it may be as simple as the long term capital distributions that are on 13.  you didn't sell funds, but they distributed and reported that as long term distributions.  

[BAJJERFAN]

Thanks, but I know where it came from. There was a STCG of $3731 on one 1099- B and a STCL  of -1082 on another 1099-B giving a net STCG of $2649.

[VolvoGirl]

Did you import the 1099B or manually enter them?   If you imported it may have imported wrong.  So you need to check it close.  Or you are not understanding why the 3731 got put on line 13. Are you using the Desktop program or the Online version?  Maybe delete the imported ones and enter them manually from the actual statements.  Also it common for them to put out Amended 1099 forms.

[BAJJERFAN]

The trades were all stocks so I would have likely used the first buy and last sale dates of the year.

Nothing on lines 8 and 9a of the K-1  just on line 7 which the trust attorney who did the trust tax return classified as rental income.

I believe I followed the instructions, but can't guarantee that now.

I will try later to get more info from the 1099s.

[NCperson]

what does that mean you used the first buy dates and the last sell dates of the year?  the requirement is is to use the actual purchase and and the actual sale date. for anything purchased in the last 10 years, it would be right on the statement as a "covered transaction".  

But I really believe the long term capital gain distribution on line 13 (first screen shot) and line 4 (2nd screen shot) is the issue - you can't just be moving things around..... What do your source documents state? 

[BAJJERFAN]

I believe that I imported the 1099-B by inputting the brokerage EIN or whatever it asked for, but apparently only one 1099-B was imported into the form 8949. No I do not understand why the 3731 ended up on line 13 since I had no long term cap gains. I was using the online version. There were no amended 1099s.

Here is the summation of the  two 1099s. As can be seen neither shows any LTCG.

How would a taxable income of 38,900 and a LTCG of 3731 lead to a tax due reduction of $324? 

[BAJJERFAN]

This is how my tax advisor summarized all of my completed trades last year on form 8949 rather than list a slew of trades. I had planned to do the same this year, but your software wouldn't let me because it doesn't use individual IRS forms, so it's a dead issue. But you are correct in that the problem lies in the misplacement of the $3731 in short term capital gains.

[BAJJERFAN]

There is no tax due on long term capital gains for married filing jointly with an income of $80,000 or less. So your software should have ended up ignoring any long term capital gains, correct?

https://www.bankrate.com/investing/long-term-capital-gains-tax/ 

The net short term capital gain of $2649 was properly included as ordinary income on line 7.  All other entries on the 1040-SR are I believe correct except for the tax due which the TT software undercalculated by $324.

Also can you post here if it's not too much trouble how the TT software calculates how much of one's social security is taxable?

My tax advisor said that filing an amended return this early would confuse the IRS because they don't have all of the necessary 1099s, etc. available for matchup.

Can you post a link to your online amended 1040 form?

[VolvoGirl]

To see the Social Security Benefits Calculation Worksheet  in Turbo Tax Online version you would have to save your return with all the worksheets to your computer.   Or if you are using the Desktop CD/Download Software you can switch to Forms Mode (click Forms in the upper right) and click on SS in the list on the left side.

Is your Social Security taxable?

https://ttlc.intuit.com/community/income/help/is-my-social-security-income-taxable/00/25600

IRS Pub. 915 on Social Security

https://www.irs.gov/pub/irs-prior/p915--2020.pdf

[BAJJERFAN]

The IRS offers a worksheet to use in calculating the taxable amount. Is that what TT uses?

[VolvoGirl]

Yes.  But if you try filling it out yourself it is tricky and easy to do wrong.   Get the Turbo Tax worksheet to check it.

[BAJJERFAN]

It would be helpful if TT included the worksheet in with the rest of the return documents. Also it would be nice if they included copies of any worksheets used during the process.

I took the liberty of using the qualified dividends and capital gains worksheet using the numbers from the TT version of 1040-SR  and it looks like that's where the $3952 tax due amount came from. It looks like I have to stand corrected and I will assume that no further action is needed unless I hear from the IRS. I do wonder tho how or why the 1099-B numbers from the M-L brokerage weren't itemized and ended up on the LTCG section of  schedule D. The itemized trades for M-L also did not appear on the 8949 form. The correct amount of capital gains was imported so something went right.

[VolvoGirl]

Both the SS worksheet and Capital Gains Tax Worksheets are there.  Are you using the Online version?  If you haven't filed you have to pay the fees first to see all the forms and worksheets.

Here's an alternate way to print by opening the filed return back up to print at the Print Center, where you can also get the worksheets.

Log in and at the Tax Home or in the section Your Tax Returns & Documents for 2020, look for a link Add a State. Click on Add a State. (you don't really add one. That's just to open your return back up.)

After the return is open, click in the left menu column on TAX TOOLS, then PRINT CENTER.

Then choose Print, save, view this year's return.

The next screen should offer some options: Just my tax returns or include government worksheets (optional), or include government and TurboTax worksheets (optional.)

[BAJJERFAN]

Thanks

I've already filed online and paid and got my refunds, but the finished copy that I could print or download did not contain any worksheets. I will go back and look tho.