Unexpected Tax Amount Owed in TurboTax

[shubham-123]

I've just started my 2023 tax return on TurboTax Online and am seeing a non-zero amount owed, even though I haven't entered any wage, deduction, or other income information yet.

Possible Connection to Last Year's Filing:

• Last year, I began my return on TurboTax Online but ultimately switched to TurboTax Desktop for filing. Could this be causing the issue?

Does anyone have insights into why this might be happening? And how can I start it fresh with due as 0.

Thank you for any help!

[VolvoGirl]

That could be related.  When you started this year Online did you transfer from the 2022 file on your computer?  Try transferring from your real 2022 return.  You can clear your return and start over to transfer.

If you used the Desktop program last year here’s How to transfer into the Online version, expand the 3rd blue link if you used the CD/download last year........

https://ttlc.intuit.com/questions/1900883-how-do-i-transfer-last-year-s-return-in-turbotax-online

[shubham-123]

Thanks for your reply. 

On 2023 turbotax, here is the summary showing 104$ tax owe: 

Btw, I tried to clear 2022 tax online but it is not showing me that option: 

I also tied transfer for 2022 from desktop version. It was successful but didn't impact anything:

[VolvoGirl]

Couple ideas

Did you take a 1099R retirement IRA distribution 3 years ago and spread the taxes over 3 years? It may have transferred over like a 4th time. Delete the 1099R and form 8915. See this post for what to delete
https://ttlc.intuit.com/community/retirement/discussion/i-took-a-401k-wd-in-2019-then-spread-it-over...

One thing I can think of is if you took the First Time Homebuyer's credit and you still owe for it. But that is usually $500.  Or if you got a state refund last year. That maybe be taxable.

[shubham-123]

Thanks for your reply. 

I live in WA state, so no state tax issues. Also, never did a IRA distribution. 

Is there any way to start completely fresh while filing tax for year 2023 without it importing any data from anywhere? I don't see any way to do that. It is always importing some details from past filings. 

[VolvoGirl]

Yes.  There is a tricky way to clear out transferred info in the Online version. But doing this will also clear out all your current entries. Go to Tax Tools -> Tools -> Transfer from your computer -> Continue -> then Continue without transferring.

Or you can just start a brand new account with a new username. How to start a new online return
https://ttlc.intuit.com/community/using-turbotax/help/how-do-i-start-another-return-in-turbotax-onli...

[shubham-123]

Thanks. 

The tricky way you mentioned will only clear all entries for 2023, right? Not the previous turbotax filing I did, right?

[VolvoGirl]

Right, only 2023 entries.  

[shubham-123]

After Tax Tools -> Tools -> Transfer from your computer -> Continue , I don't see an option of "Continue without transfer" at all.

[CatinaT1]

Please call TurboTax Customer service.  Here is a link:  Turbo Tax Customer Service 

[shubham-123]

Thanks. 

I called customer care and they are not able to help (spent around 1 hour). I don't understand why there is no option of removing the previous years details in the tax return. 

But finally, I was able to find the issue with the help of 

https://ttlc.intuit.com/community/taxes/discussion/turbotax-says-i-owe-money-before-i-started/00/281... post. In my 2023 return, it was having issues with HSA section where when I marked it as HDHP and remove all amounts, tax due becomes 0. I don't really understand, why it was showing those information in the first place. 

In 2022, we contributed more than the contribution limit in HSA but that the overcontributed part we withdraw before April 15 2023 and paid taxes on it. So, I was thinking that was all over. 

Is that something that should affect while filing 2023 taxes?

[AmyC]

You may have a 1099-SA with a code 2 to report the earnings to enter on this year's return. As long as you removed the earnings plus excess for the 2022 tax year, you will not have a penalty this year. 

The program is reminding you of last year's issue and making sure all of the follow up is complete.

[shubham-123]

Thanks Amy. 

I just noticed the 1099 SA for my spouse from where we remove the over contribution. In code 2, it is showing 0 value. Does that mean no earnings?

But noticed there was still some money left in my spouse HSA account of 0.71$:

I saw this came as divided after we withdraw everything from this HSA account last year. Is it okay to just have this amount sitting in HSA or can we just withdraw this amount from HSA account and close this account? If we withdraw, will there be any tax implications? 

[RobertB4444]

It's a dollar.  If you get a 1099-SA for the dollar you will have to report it as a withdrawal from your HSA.  If you don't have a HDHP then it will be a taxable dollar.

@shubham-123