Why am I seeing changes to tax amount after return is e-filed?

[PatP3005]

It looks like the program is calculating taxes incorrectly. I just got a notification that there was a change in the return after it was e-filed. The only change is the tax. Calculating it manually, the program calculated the tax incorrectly originally. I can't tell what the program is doing. I called support and the agent I spoke to didn't know and wasn't interested in figuring it out. I'm not comfortable with whatever the program is doing. 

Has anyone else seen this?

[Marsha2020]

I've had a problem with the unemployment income after the update.  Numbers changed but at least I had not filed it.  VA still a problem.

[Just-Lisa-Now-]

I saw  a post somewhere about Sch D tax calculation changing after this latest update...let me see if I can find the post, I think it was in another group.

[Just-Lisa-Now-]

OK, this is what was posted in the ProSeries Facebook group this morning.  Sounds like it was wrong before and now its correct?

"The latest ProSeries update pushed out changes impacting tax calculations for returns with Form 4952. The software had been incorrectly using the Qualified Dividends and Capital Gain Tax Worksheet for returns with Form 4952. They corrected this to use the Schedule D Tax Worksheet - any returns that were waiting to be efiled have likely been changed."

[PatP3005]

Thank you for taking the time to find that article. My return didn't have a 4952. It was a very simple, W2 only, tax return. 

[qbteachmt]

"I just got a notification that there was a change in the return after it was e-filed. The only change is the tax"

Are you sure it isn't this situation, described last month:

https://proconnect.intuit.com/community/proseries-tax-news-updates/discussion/proseries-2020-produce...

[PatP3005]

No, I'm not sure. While that could be the situation, the program calculated the tax amount incorrectly on the original return. I didn't check it before I filed it because I trust the software to calculate the tax correctly. After I received the message that the amounts had changed I manually checked the tax calculation and it was wrong on the original return. After it was efiled it showed the correct tax. Fortunately the change was in the client's favor. But it's embarrassing and unsettling that the software didn't do it right initially.

[qbteachmt]

"After it was efiled it showed the correct tax."

Instead of us playing twenty questions, why not confirm Tax and Credits to see what changed?

"I can't tell what the program is doing."

If you've identified it was wrong, you also must be able to see where it went wrong. Otherwise, how do you know it was wrong?

[acuny]

"Original Return" data for a return filed Feb 12: Line 16 $2,758, Line 17 [empty], Line 18 $12,603. (sum of 16 & 17), further down, you see total tax of $2,838 ($2,758 plus $80 other tax). Total payments $8,871, so refund of $6,033 right? Nope. Amount you owe: $3812 (a $9845 error - out of nowhere). Please explain this. (And this was BEFORE the legislation in March.)

Thanks,

CTS

[Just-Lisa-Now-]

nobody can decipher whats happened on the return without seeing it....cant you compare the originally filed print out with what you see today and see whats changed?

[qbteachmt]

Assuming this is Fed, and assuming this is 1040, and not knowing if this is single, MFJ, with dependents, children with earnings or unearned income, students, IRA distributions, deferrals, (on and on)...

Filing Feb 12 was before a bazjillion tax regulation changes, which also is before a bazjillion updates to the ProSeries program including things you should confirm such as:

Unemployment

Tax credits that depend on MAGI

APTC

Deductible expenses for schedule C person

AGI

RRC

etc, etc, etc

Obviously, we cannot look over the return for what has changed, no longer allowed, limited, or whatever happened that changed the bottom line.

[Ssorrell]

Yes - I have had the same issue !!  and correct Proseries can not answer.  My client received an IRS letter with the increased tax.  It was regarding ordinary tax -

[Just-Lisa-Now-]

The letter has more info than just "increased tax"...what did they change?

[Ssorrell]

There is no way you can calculate a wrong answer

.  I can manually calculate the correct ordinary income tax   and Proseries software did not.  I manually check all NIIT MC Tax etc... but not ordinary income tax

[Just-Lisa-Now-]

Ohhh, there was a tax computation error back in tMarch, Im not sure it was ever officially recognized by Intuit...people only noticed when an update made changes.  I cant remember the details, I think it may have had something to do with investment interest or Sch D...damn, seems like so long ago!   I didnt have any clients that it applied to so I stuffed it in a different part of my brain....it may come to me at 2am some morning.

I first saw it reported over in the ProSeries Facebook group, I went digging but its a fairly active group, Im sure its buried pretty deep....I cant seem to find a keyword to search the group for that yields anything.

Ahhh, I just scorlle dup in this thread and I already mentioned this up there!

[taxiowa]

I just got one in today with the EIC amount changed by the IRS.  The letter said EIC was calculated wrong by the program or preparer.  What the IRS did was use last year's earned income to re-figure EIC, which we did not when filed because it lowered refund by $1,500.  So in their infinate wisdom the IRS changed it on their own.  I checked client paper copy, the filed copy on the computer and all 3 backup's and my paper copy and all used this year's income.

The letter was weird in that it said if you do not agree then just call this number and we will change it back.  Or you can write a letter and we will change it back.  Never heard the IRS speak that way and it was not a normal CP2000 or even a response form with it. 

[Just-Lisa-Now-]

Goodness, this year is just going to be a mess.
Im seeing people over in the FB Tax groups with clients getting refunds adjusting for the UI exclusion, when it had already been adjusted for on the original return...SMH.

[qbteachmt]

"getting refunds adjusting for the UI exclusion, when it had already been adjusted for on the original return"

Ah...our tax dollars at work.

[Anonymous]

I also had already adjusted the unemployment for the $10,200 exemption.  Proseries changed the amount to $13,949, the entire amount of the unemployment the client received.  Then they added that $13,949 as a "other income" amount to the IDAHO tax return, so Idaho is after the client for more tax.   The Proseries telephone people were actually yelling at me that it's my fault because I didn't "lock the tax return" (??).  Are we really on our own here?

[qbteachmt]

If you didn't lock the return, it would be subject to updates. A major update would include State conformity, which is still rolling out, based on State legislatures. It ain't over until it's over, apparently.

[Anonymous]

How does one "lock a tax return" from a ProSeries update?   

[qbteachmt]

See these topics:

https://proconnect.intuit.com/community/banking/help/new-for-tax-year-2017-proseries-return-locking/...

https://proconnect.intuit.com/community/proseries-tax-discussions/discussion/return-changing-after-e...

[Just-Lisa-Now-]

---

@Anonymous wrote:

I also had already adjusted the unemployment for the $10,200 exemption.  Proseries changed the amount to $13,949, the entire amount of the unemployment the client received.  Then they added that $13,949 as a "other income" amount to the IDAHO tax return, so Idaho is after the client for more tax.   The Proseries telephone people were actually yelling at me that it's my fault because I didn't "lock the tax return" (??).  Are we really on our own here?

---

ID is a community property state, right?  IRS made some clarifications to UI exclusion in CP states, you may want to read up on

  https://www.irs.gov/forms-pubs/unemployment-exclusion-update-for-married-taxpayers-living-in-a-community-property-state

If this was a MFJ return, that exclusion of the entire amount is correct.  But depending on how ID deals with UI, you may have needed to make a manual adjustment for this on the state return, it took Intuit quite some time to roll out updated state programming for all the individual states and how they dealt with the UI exclusion. 

[Anonymous]

Only one spouse got unemployment, $13,949 of it.    $10,200 should have been exempted from tax, as I understood it, at the IRS level.    Are you saying that Idaho did not conform with the $10,200 deduction, so ProSeries first took out the entire unemployment proceeds and then added them back in in Idaho?   I'm from Arizona and am very familiar with State legislatures not conforming, but that's amazing, if true. 

[Anonymous]

And apparently it IS true.  Idaho did not conform, according to an internet search just now.   

I still don't understand how ProSeries exempted the entire unemployment amount for the IRS when only one spouse earned it and it was more than $10,200.  

[Just-Lisa-Now-]

read the link I gave you above. In a CP state, each person can deduct up to 10,200, even if only one person collected unemployment.

[Anonymous]

I read it.  I disagree (politely) with your understanding of what I read.  

[Just-Lisa-Now-]

OK, if I explain it like this, maybe you'll agree.

The total unemployment gets split in half between both people and they each get a 10,200 exclusion.

So one spouse got 14,000 in UI. That gets split as 7,000 for each person and then each of them can exclude up to 10,200.

[Just-Lisa-Now-]

If you look at the 1099g worksheet, that's what ProSeries is doing automatically now if you check the Community Property box at the top.

[Skylane]

@taxiowa ….. Uber and Lyft killed the taxi/limo trade… they all went to work for the IRS.

Irs figured since they were adept at navigating our nation’s cities, they’d have no problem getting around the tax code

[Anonymous]

hahahahaha... working around is what I'm doing this afternoon.   But I look like a fool to my Idaho client.  Humility is a hard virtue.  

[MatthewTrivett3]

I need to access my 2020 return

[Just-Lisa-Now-]

I think you may be in the wrong place...this forum is for tax professionals using Intuit's professional tax software, it appears you may be looking for DIY help.

Please visit the TurboTax Help site for DIY support, they may be able to help you.

[Anonymous]

I don't know why that question from a year ago is getting attention now.  I'm a CPA, I've used ProSeries Professional for 20 years, and I was challenging ProSeries' changing filed 2020 tax returns.   

[qbteachmt]

"I don't know why that question from a year ago is getting attention now."

Because some search result landed @MatthewTrivett3 in your topic, not understanding that Intuit maintains lots of Peer user Communities for their various Software products and this is the wrong place for Matthew.

You seem to be lost on the internet.

You’ve come to a Peer User community for Intuit Income Tax Preparation products supporting tax preparation professionals using ProSeries, Proconnect and Lacerte Tax Preparation programs, and you may be looking for support as an individual taxpayer using TurboTax. Please visit the TurboTax Help site for support.

And try this screen, for the various topics (subforums): https://ttlc.intuit.com/community/discussions/discussion/03/302

Your sign in user info here is the same one you can use over at the TurboTax forum.

Thanks.