Hello, Experts:
I am using TurboTax 2021 business windows desktop version.
I just updated my turbotax business before I plan to file tax return for my corporate tax. The version I am using now (after today's update on 09/04/2022) was WinBiz [phone number removed].
It just showed that my business balance sheet is not balanced. What I found is that the calculation for Federal Taxes-->Deductions-->Business Expenses--> Common business expenses item was wrong. Let us say the sum of all my common business expenses is X dollars. What being shown here is the X-Y (when Y is the dollar number of the Payments to independent contractors item). While the common business expense item and the Payments to independent contractors should really be separate/independent items.
This calculation mistake was not there before my today's version update.
Could you please help look into this? As the corporate business file return deadline 09/15/2022 is just around the corner. Thank you.
Are you filing Form 1120-S for an S corporation?
There are a few others who have reported a similar anomaly.
I will report this issue and hope that it will get escalated.
In the meantime, can you enter the expense for contractors directly on Line 19?
Hello, Champ tagteam:
Thank you for your reply.
I found another thread in this forum, which was reporting exactly the same problem. The workaround in the other thread was to go to the "Forms" and add the payment to the third parties to the sub items of line 19.
This is in line with your suggestion of " enter the expense for contractors directly on line 19". The catch is that I need to switch to the Form mode from the step by step flow mode. It is kind of confusing is that in step by step flow mode, there is a specific item of payment to 3rd party contractors. I already made input there. Yet I will need to go to the Form mode, and one more time add both the item and the amount corresponding to the item for the line 19 sub item.
Thanks you for your attention and help. This one seemed to be a bug. I know for sure it was introduced between 07/03/2022 and 09/04/2022 as those were the dates for my previous software update and my latest software update.
Yes, tagteam, I am filing business tax for S corp. 1120-S.
I agree, @yangguoguo , and I realize that the procedure is annoying.
This behavior has been reported so hopefully the issue will be addressed in an update.