Turbotax error line 12B

[bizlady]

Might depend on version, but I found this morning that that if you take the standard deduction, and made charitable contributions, the $300 ($600 MFJ) deduction amount allowed this year does not calculate onto line 12B.

I had to enter it on the SR version form to get it on the full 1040 form. I have the TT Home and Business version.

 

[rk911]

thanks! did you report that to TT?

 

[Retiired]

Thanks for sharing! We will need to see if this is fixed on the final updates.
It looks like their is a bogleheads forum discussion confirming an issue.

https://www.bogleheads.org/forum/viewtopic.php?p=6470865

 

[cathy63]

Mine's working correctly. I have the latest updates.

 

[harllee]

There is also a bug in Turbo Tax for those of us in the 70.5 to 72 age group who do charitable contributions from our IRAs. Turbotax does not recognize the charitable contribution. This is a know problem and was a problem last year too. There is a work around but it is messy and complicated. I don't think TT is keeping up with the tax law changes. I wonder if another tax software company would be better.

 

[badatmath]

Am I the only one feeling that TT imported less info than last year? I mean sure it got my name and all but it usually says something like "last year you reported income from xyz do you have some this time" and not seeing any of that.

 

[Perryinva]

My online version does import all that, but has a different bug. Federal has itemized deductions. State (Virginia) MUST be the same, standard on state if standard on Federal, etc. But TT refuses to calculate state with itemized to match Federal. It is stuck on standard, no matter what I do. I will have to talk to someone there.

 

[Perryinva]

Well, nevermind, I figured a work around for the bug. I made a large temporary change in the deductible amounts so that the Standard deduction was clearly the best choice & that causes a recalculation within TT. Then I made a large temporary change in the other direction, so Itemized was clearly the better choice and TT made the swap from Standard to Itemized. Then when I corrected the amount, it properly corrected the Stare taxes. In this case, I went from a $87 refund in FIT & $128 refund in State with Standard deduction to paying $67 to FIT, Itemized, but getting a $1021 refund from State, obviously well worth the trade off!!

 

[harllee]

I had to do several work arounds this year on Turbo Tax to get the numbers to show correct. If someone was using Turbotax who does not know the tax rules and work arounds they would pay much more in taxes than required. I still don't think TT is ready for the average person to use. There is much discussion on their help section about these issues.

 

[Winemaker]

While working on my return, the 12b error showed up as an error on review, and I had to correct it as a error there.

 

[latexman]

Ditto. Smart Check reported a 12b cash charitable contribution error. I went to form view. DW and I had $488 of cash charitable contributions to a local Food Bank, but TT step-by-step only allowed $300 to go into 12b. The worksheet said $488 plain as day! I overwrote the 300 in 12b with 488, and my tax due decreased $45, which is an incremental 24% tax rate, so . . . good to go!

 

[JoeWras]

I know there is always a drive to file early, if not for the refund, for the identity protection.

But man, you play with fire with Turbotax if you file before March 1. I like to wait until April 1 no matter what. There are too many issues like this that [-]their test department[/-] the customer base (acting as beta testers) find.

 

[audreyh1]

Same here. I’m usually delayed by a 1099 anyway, or maybe foreign tax credit details. I fight the identity fraud possibility by working hard to avoid overpaying estimated taxes. Sure, I might have to deal with a hassle after filing, but at least I’m not stuck waiting on a refund.

We usually file in March if we can.

 

[harllee]

Ditto. Smart Check reported a 12b cash charitable contribution error. I went to form view. DW and I had $488 of cash charitable contributions to a local Food Bank, but TT step-by-step only allowed $300 to go into 12b. The worksheet said $488 plain as day! I overwrote the 300 in 12b with 488, and my tax due decreased $45, which is an incremental 24% tax rate, so . . . good to go!

I figured this out. Do not list the charitable contributions where it asks about itemized deductions. Once TT figures out you are better off doing standard deductions, then TT will ask about the $600 charitable deduction for non itemizers and then you put it in. Very confusing.

 

[Sunset]

I figured this out. Do not list the charitable contributions where it asks about itemized deductions. Once TT figures out you are better off doing standard deductions, then TT will ask about the $600 charitable deduction for non itemizers and then you put it in. Very confusing.

Thanks...

I think you move to the head of the testing group

 

[Perryinva]

Well, I made more work for myself, filing too early, but net result is the same. I totally forgot about a few eBay sales totaling $2100, and didn’t get a mailed copy until a week after I filed, so now I have to amend the return to include them as “garage sale” items with original cost greater than sale amount, so no changes to income. At least Amended forms can be done online now.

 

[audreyh1]

Thanks. We’ve got substantial charitable deductions for 2021, and will be itemizing, so I suppose we avoid this issue.

 

[lucky penny]

Might depend on version, but I found this morning that that if you take the standard deduction, and made charitable contributions, the $300 ($600 MFJ) deduction amount allowed this year does not calculate onto line 12B.

I had to enter it on the SR version form to get it on the full 1040 form. I have the TT Home and Business version.

What is the "SR version form"?

 

[Sunset]

Well, I made more work for myself, filing too early, but net result is the same. I totally forgot about a few eBay sales totaling $2100, and didn’t get a mailed copy until a week after I filed, so now I have to amend the return to include them as “garage sale” items with original cost greater than sale amount, so no changes to income. At least Amended forms can be done online now.

So do you get to claim a loss on them ?

 

[SecondCor521]

So do you get to claim a loss on them ?

No. Capital losses on personal items are not deductible. They probably know this.

I think they're just filing to let the IRS know how to reconcile the 1099-K (i.e., that it wasn't income), rather than get an IRS notice.

 

[SecondCor521]

What is the "SR version form"?

Probably this:

https://www.irs.gov/forms-pubs/about-form-1040-sr

 

[harllee]

No. Capital losses on personal items are not deductible. They probably know this.

I think they're just filing to let the IRS know how to reconcile the 1099-K (i.e., that it wasn't income), rather than get an IRS notice.

I am going to have to do this next year since I am selling some basketball tickets on Stubhub (did not want to go into crowded arena due to Covid). I will probably have a loss or a very small gain once I subtract ticket costs and Stubhub fees. I was wondering how to report. What schedule should these ticket sales be reported on?

 

[cathy63]

I am going to have to do this next year since I am selling some basketball tickets on Stubhub (did not want to go into crowded arena due to Covid). I will probably have a loss or a very small gain once I subtract ticket costs and Stubhub fees. I was wondering how to report. What schedule should these ticket sales be reported on?

I'd put it on form 8949 and treat it as a capital gain, either short or long term. If you end up with a loss, it is not deductible because the tickets are personal property, so you have to put an L in column f and put the appropriate amount in column g to zero it out.

 

[SecondCor521]

I'd put it on form 8949 and treat it as a capital gain, either short or long term. If you end up with a loss, it is not deductible because the tickets are personal property, so you have to put an L in column f and put the appropriate amount in column g to zero it out.

Exactly what I would have said, only more clearly. (As usual.)