Iowa Form 1040 Line 27
It appears that ProSeries is incorrectly calculating Line 27 of the Iowa Form 1040. The detailed instructions say to not include any stimulus money in the refund amount (https://tax.iowa.gov/expanded-instructions/federal-income-tax-refund-overpayment-received-2021). ProSeries is using the current year stimulus money in the calculation as opposed to the prior year.
For example, If I got a $5,000 refund on my 2020 tax return, but $1,800 of that was because I didn't get the first two stimulus checks, my taxable federal refund on Line 27 should be $3,200. Let's say I didn't get the third stimulus check either. If everything else stayed the same, ProSeries would incorrectly calculate my taxable refund as $3,600 ($5,000 - $1,400 (3rd stimulus check)).
I know it is early in the season, but can you please have the software engineers look into this?
Thank you!
