I am doing my 2019 federal tax return with turbotax and noticing calculational mistakes. For example, after entering an item of income that should result in x% federal tax, I see my taxes increase by a larger amount. How can such mistakes be handled?
Thanks
When you enter one taxable transaction, you can't just watch the monitor. You increased your overall adjusted gross income and with that come many other changes in your return, not just the incremental tax on the one transaction.
Like for example it increased your AGI and that would decrease some deductions if you itemized on Schedule A. And by increasing your AGI it might reduce some credits you were getting like EIC. And can make more of any Social Security taxable.
I once added $6 in interest and the tax went up $12! It pushed me into the next tax bracket. I was right at the line.
Thank you, VolvoGirl, but it's not that. I am well familiar with such possibilities but they apply here. I haven't been pushed to a higher tax bracket with that income item added.
You would have to take that item out and print or preview your return. Then add the item and see what all changed. What did you add? Maybe you missed a question or box on the entry screen or for a 1099R got a penalty added. Or missed the withholding on the entry. Lots of possibilities.