I was helping my sister with her taxes and there seems to be a system glitch where it’s saying she owes $30k on $24k of AGI. Essentially a 139.6% tax rate. Is there a known issue as I’ve reviewed several times and the entries are correct but the results are nonsensical.
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Yes, that doesn't make sense for the AGI you mention, but there are no known issues regarding this that I could find. Since you can't find an entry error, if you're using TurboTax Online, I would suggest that she start over. Here's How to Clear and Start Over.
If she's using TurboTax Desktop, go FORMS and Open Form 1040. Scrolling through the form might point to an incorrect amount. Use the magnifying glass to drill down to the source of the amount. Or, she could 'start a new return'.
Did she transfer a 2023 return into 2024? If so, she may want to take a look at the 2023 tax file in TurboTax 2023 to be sure it looks correct. Did she report self-employment income? That may be a place to check, if that applies.
Let us know if you're not able to resolve this, and we'll try to help further. You can also Contact TurboTax Support.
Thank you, Marilyn. I went in the following day and removed just the two W-2s and re-entered each manually and it corrected the issue.
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