TurboTax miscalculated my taxable income as adjusted gross income and resulting in higher Federal and State payment

[laura90025]

TurboTax calculated my Federal and State taxes due with the adjusted gross income amount and not the taxable income amount.  I was on the phone talking to a TurboTax for and on hold for almost 2 hours and still no one was able to assist me.  I was told me hold on longer but I am not able to stay on the phone.  I asked the rep. to have someone contact me and fix the mistake TurboTax caused and/or to please make a note in my file to have someone fix this.  as of right now, no one has gotten back to me yet.  In the meantime, I had to come up with the funds and ended up overpaying on the Federal and State taxes due to the IRS.   I tried to contact TT and it is almost impossible to get help.  This is ridiculous!!  

[VolvoGirl]

What did the IRS change on your return?  Do you get Social Security?   That’s a common thing they are changing this year.

There is a new question this year asking if you lived in a foreign place.  People have been answering it wrong or skipping it.  Go back through the Social Security entries.  

You can go back into your tax return but be very careful not to change anything.  Click on Add a State to let you back into your return.  You should see this screen after you enter your Social Security and hit Continue.  What is checked Yes or No?  

[DoninGA]

How do you know that the taxes owed was calculated on Line 11 for the AGI instead of Line 15 for the Taxable Income on the Federal tax return, Form 1040?

[laura90025]

I calculated the percentage (effective tax rate) for my tax bracket that was showing on the first page  and the amount came out exactly to the AGI and not the taxable income amount.  

[laura90025]

I need not see any change from IRS yet.  No, I don't get social security.  I skipped the foreign place question because it does not apply to me.  Was I supposed to answer that?  Thanks.

[Vanessa A]

No, if you do not have foreign income, then you would not need to answer that question.

I would like to take a deeper look at this. However, I need a diagnostic file which is a copy of your tax return that has all of your personal information removed. You can send one to us by following the directions below:

TurboTax Online:

1. Sign into your online account.
2. Locate the Tax Tools on the left-hand side of the screen.
3. A drop-down will appear. Select Tools
4. On the pop-up screen, click on “Share my file with agent.”
5. This will generate a message that a diagnostic file gets sanitized and transmitted to us.
6. Please provide the Token Number that was generated in the response.

TurboTax Desktop/Download Versions:

1. Open your return.
2. Click the Online tab in the black bar across the top of TurboTax and select “Send Tax File to Agent” *
3. This will generate a message that a diagnostic copy will be created.  Click on OK and the tax file will be sanitized and transmitted to us.
4. Please provide the Token Number (including the dash) that was generated in the response.

*(If using a MAC, go to the menu at the top of the screen, select Help, then, “Send Tax File to Agent”)

[VolvoGirl]

The effective tax rate on the first page isn't used to calculate your actual tax.

Blog on Tax Bracket
https://turbotax.intuit.com/tax-tips/irs-tax-return/what-is-my-tax-bracket/L3Dtkab8G

See these posts for how the effective rate is calculated
https://ttlc.intuit.com/community/taxes/discussion/my-effective-tax-rate-on-the-cover-page-does-not-...

https://ttlc.intuit.com/community/taxes/discussion/effective-tax-rate/00/3539800

[VolvoGirl]

Are you using the Online version or the Desktop program?  Do you have any  dividends or capital gains?

There are like 7 different ways to calculate the tax.
Even though the full amount shows up in the total income on the 1040 line 7, if you have capital gains or qualified dividends the tax is not taken from the tax table but is calculated separately from Schedule D.   The tax will be calculated on the Qualified Dividends and Capital Gain Tax Worksheet. It does not get filed with your return. In the online version you need to save your return as a pdf file and include all the worksheets to see it.