Tax Calculation

[Amanda5712]

Has anyone noticed since the last update that the federal income tax is not calculating correctly?

My client taxable income 103588  tax calculated by proseries 14,008.00

Manual calculation with tax table calculation 13404.00

[GodFather]

What made you calculate by hand?  

[Amanda5712]

We always check them by hand.

[TaxGuyBill]

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@Amanda5712 wrote:

Has anyone noticed since the last update that the federal income tax is not calculating correctly?

My client taxable income 103588  tax calculated by proseries 14,008.00

Manual calculation with tax table calculation 13404.00

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Are there anything things that you may have mis-entered in the software, such as entering something as a short-term capital gain rather than a long-term gain?

Is there anything that you may have missed on your manual calculation, such as factoring in the Foreign Earned Income Exclusion?

If there are any Schedule D capital gain worksheets, I think you can print them out.  Have you tried that and compared that to your manual calculations?

[rbynaker · Accepted solution]

I get $14,023.  But that assumes all sorts of highly relevant facts not in evidence such as tax year, filing status, $0 QD/LTCG . . .

[Just-Lisa-Now-]

So yesterday the program calculated it as 13404 but today, after the update,  its 14008?

[PATAX]

Pro Series does an excellent job on calculation of that. If it did not, then we would all be getting notices from the IRS. I cannot recall, in my little pea brain, of ever getting a notice for erroneous tax calculation.

[GodFather]

How often have you changed a return based on the manual calculation?  That is a completely sincere question.  In 30 (I'm 39 years old) years of preparing taxes, I've never once received a notice that the calculated tax was incorrect.  

[IRonMaN]

We double check the tax calculation for the first couple of returns coming off the assembly line each year.  If those returns are good, we hit the gas and don't look back. 

[Amanda5712]

Well have been in business for over 45 years.  I figured out what happened.  Someone changed my tax table sheet to 2023.  Mean joke!  Using the 2022 tables everything is correct, but yes always good to double check the program with the correct tax tables and not just be data entry and trust the program.  

[STILGOIN]

I have received 3 notices this year about taxes being calculated wrong from the IRS and I use Pro Series- this is a real issue this time. 

[TaxGuyBill]

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@STILGOIN wrote:

I have received 3 notices this year about taxes being calculated wrong from the IRS and I use Pro Series- this is a real issue this time. 

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IRS Notices don't mean anything. 

Did you manually calculate it, and was it actually calculated incorrectly?  Was it income tax on line 16, or some other thing?  Did you verify you entered long/short capital gains and qualified/nonqualified dividends correctly? 

Because most returns are correct, what circumstances triggered the incorrect calculation (date it was filed, certain types of income, etc.)?

[Tax1007]

I have a client with a total income of $80,710. After taking the HOH standard deduction, the taxable income of the client is $59,910. The first $15,700 is taxed at a rate of 10%, resulting in a tax amount of $1,570. The remaining balance of $44,210 is taxed at a rate of 12%. 12% of $44,210 is $5,305. Adding the two tax amounts together, $1,570 + $5,305, gives a total tax liability of $6,875 according to the hand calculation. However, the system shows a slightly different total of $6,885. Any one experiencing this issue with the 2023?

[abctax55]

Tables v. specific calculations can show rounding differences

[bostoneac]

I have had the same problem with a recent return. We always check our returns by hand and this is the first one that isn’t calculating correctly.