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Thread: Warning Turbo tax is way way off.

  1. #1
    Join Date
    Sep 2016
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    Modesto, CA, USA
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    Warning Turbo tax is way way off.

    I still need to get one statement from my broker but I was able to get most of my taxes done this afternoon. I used the free version of turbo tax online. I think the math looks right all except for how they calculated the tax rate.
    Turbo tax says I owe 57% taxes on my income. The IRS says the maximum tax rate is 37%. For my income it is more like 12%. There is no way then tax can possibly be over 37% So I know it is wrong.
    I talked to my sister the math teacher and she got me calmed down. If it is not corrected in a few days I will cross out their tax liability and hand write the info from tax tables and do the math from that.

  2. #2
    Join Date
    May 2007
    Location
    Fort Smith, Arkansas
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    1,760
    I’ve used turbo tax for years. Always a paid version though. I like that it can import all my interest/dividends/brokerage info and enter automatically. Pretty simple return though so it’s a great mystery why it generates a 40 page return to be e-filed. I sure hope they know what they’re doing. Lol Does the free version do the import from financial institutions?
    My three favorite things are the Oxford comma, irony, and missed opportunities

    The problem with humanity is: we have paleolithic emotions; medieval institutions; and God-like technology. Edward O. Wilson

  3. #3
    Join Date
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    I have completed income taxes for my two grandchildren using a paid version (Premier) of Turbo tax and it seemed accurate to me.
    I will be starting my own soon
    Dennis

  4. #4
    Join Date
    Sep 2013
    Location
    Wayland, MA
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    It doesn't seem to be general problem; have you posted in their support forum? I doubt you can get official support for the free version, but there are some pretty knowledgeable users on on the support group.

  5. #5
    Join Date
    Mar 2003
    Location
    SE PA - Central Bucks County
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    56,584
    The "free" version of the various tax applications is only recommended for very simple tax returns. "Free" is not always the most cost effective way do do things. I use the paid version of TT and have for decades. It's always been accurate. If you itemize, have investments, etc., the "free' version isn't necessarily the best choice. If you have simple W2/1099 income, then it's a good, simple way to file.

    I also agree with the advice to report the issue to the technical support folks.
    --

    The most expensive tool is the one you buy "cheaply" and often...

  6. #6
    Join Date
    Feb 2010
    Location
    Mt Pleasant SC
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    708
    I had to use the most expensive HandR block one when I had my business. It was good but the program refused to let me retire! It kept requiring me to buy the most expensive version when I didn’t need it. The phone help is BS, no way to get anyone on the line. Luckily you don’t have to pay until finished. I switched to TT and like it.

  7. #7
    Join Date
    Aug 2007
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    Dickinson, Texas
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    Our taxes are prepared by a CPA.

  8. #8
    Join Date
    Sep 2016
    Location
    Modesto, CA, USA
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    5,717
    Thanks for the tips. I checked the forums and this is a known problem since May! It shows a higher rate but it calculates at the lower correct rate.
    Problem is mine does the calculations at the higher ,incorrect rate. This multiplies my taxes owed by about 4 or 5. So much for their guarantee of customers paying the lowest taxes possible. Turbo tax wants me to pay an unneeded extra $20,000 or so.
    I think the state return looks correct.
    I have used the free version for the last 4-5 years. I paid one time to handle the taxes from when My Mom died.There is one payment this year from my mother's estate that the free version can not handle but the upgrade will cost me $70. Since the payment is only $6.00 I will just ignore it and let the IRS figure it out and reduce my refund by a few cents.

    There is no obvious way to collect but they do say they will refund the purchase price if you can pay less taxes then they calculate, $30 if you use the free version.
    Bill D.
    Last edited by Bill Dufour; 02-15-2021 at 11:30 AM.

  9. #9
    I love TurboTax. I've used it since, about its 2nd year of existence.

    I file my taxes on the absolute last day possible.

    3 reasons for this:
    1)- I always have-
    2)- Only once since 1974 have I gotten a refund-
    3)- Many TurboTax updates come WAY late. I always download updates on the 14th and run an error check before printing out my taxes and mailing them on the 15th (or whatever the last day is). Since it's only mid February, there's still LOTS of updates to come...

    And fwiw, no, I never have, and never will file electronically.
    ========================================
    ELEVEN - rotary cutter tool machines
    FOUR - CO2 lasers
    THREE - fiber lasers
    ONE - vinyl cutter
    CASmate, Corel, Gravostyle


  10. #10
    Join Date
    Jun 2012
    Location
    New Westminster BC
    Posts
    1,681
    I've used Turbotax or its predecessor Quicktax for decades with no problems. Originally printed out my return and mailed it in but for the last decade or so submitted online. Never had a problem and it gets easier to use every year or so, especially the online submittal part and also inputting much of the info by carrying it over from last year's return or downloading it direct from Canada Revenue Agency into my return. Can't imagine going back to doing it manually, well worth the price, never tried the free version, pretty sure it wouldn't handle investment income.

  11. #11
    Join Date
    Jan 2009
    Location
    N.E, Ohio
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    2,925
    I have used H&R Block software or about 10 yrs. The version for 2020 will not run on Windows 7. If I upgrade both computers to Win 10 I have to upgrade MS Office on both and that is costly, $250 per computer. When I was in rehab after some surgery in 2019 wife went to H&R Block and they charged $365 to do the returns which is really high considering they were not complex but required several schedules. They charge a fee for each schedule even if they only have to fill in the taxpayer info and one line the fee for the schedule is the same as if there were numerous stock transactions to record. Price per schedule not time involved.

    Fifty yrs ago I did taxes and we charged for time required not per piece of paper filled out.
    George

    Making sawdust regularly, occasionally a project is completed.

  12. #12
    Join Date
    Sep 2007
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    Longview WA
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    I file my taxes on the absolute last day possible.
    This used to be my way of doing taxes. Just because this was always the it was done wasn't a good enough reason for me. Now as soon as all the paperwork has arrived it is off to the tax accountant.

    jtk
    "A pessimist sees the difficulty in every opportunity; an optimist sees the opportunity in every difficulty."
    - Sir Winston Churchill (1874-1965)

  13. #13
    Join Date
    Apr 2013
    Location
    Okotoks AB
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    2,699
    Quote Originally Posted by Kev Williams View Post
    And fwiw, no, I never have, and never will file electronically.
    Curious, why not, and why make such a point of not?

    I've been e-filing since they started it, maybe 20 years ago. It's fast, uber secure, and all but failure proof. I certainly wouldn't trust my return to the post office.

  14. #14
    Join Date
    Mar 2019
    Location
    West central Il.
    Posts
    10
    I used to use TT but now use a tax preparer service. She charges about $150 ,there are about 6 different forms we have to file. I always file electronic and wait till the last day to file, i haven't had a refund in 15 years normally owe about 5 grand + in taxes. Have enough in mutual funds that distribute income the last week of the year that I can't file a quarterly return and be accurate.

  15. #15
    Quote Originally Posted by Frank Pratt View Post
    Curious, why not, and why make such a point of not?

    I've been e-filing since they started it, maybe 20 years ago. It's fast, uber secure, and all but failure proof. I certainly wouldn't trust my return to the post office.
    For one thing, a real person has to open and examine my returns, which I prefer to a computer doing it.
    For another, if your tax return gets lost in the mail, the IRS will actually believe you (and TurboTax makes it easy to replace 'em)

    And JMO based on many a bad experience: 'Online Security' is an illusion. If it's online, hackers can find and exploit it...
    ========================================
    ELEVEN - rotary cutter tool machines
    FOUR - CO2 lasers
    THREE - fiber lasers
    ONE - vinyl cutter
    CASmate, Corel, Gravostyle


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