Why is my return not calculating correctly?

Several situations can cause your return to not calculate the way you thought it would. Here are some areas you may want to review if your return does not seem to be calculating the way you thought it would.

The tax on Form 1040 line 16 is not the same as the tax tables:

Does your return contain Form 2555 or Schedule D? Is your income over $100,000? Did you claim more than $2,100 in unearned income for a dependent on your return?

If so, you are not able to use the tax tables provided by the IRS. Your tax must be calculated using an alternate method. If you use this program, we will calculate the tax for you. For more information about these exceptions, please click here.

Do you have capital gains (line 7) or qualified dividends (line 3a)?

If so, look at your PDF:

• Summary/Print
• Print (If you do not see the Print button, click "Show details" and you will be prompted to pay preparation fees before viewing)
• Federal and a PDF of your return will open on the screen
• Qualified Dividends and Capital Gains Worksheet should be found near the end of the federal forms.

When you have qualified dividends or capital gains, you don’t use the tax tables. You use a worksheet to figure your tax. The program will calculate the tax for you.

Form 2441 – Credit for Child and Dependent Care Expenses is not calculating on my Form 1040:

Have you entered expenses for Child and Dependent Care Expenses?

If you have expenses and have not entered them yet, go to:

1. Federal Section
2. Deductions - Select my Forms
3. Credits
4. Child Care Credit and enter info for Child Care Provider (Step 1) and the Qualifying Person listed (Step 2) or not listed (Step 3) on 1040
5. Do you have a qualifying child who was under age 13 during the year? If they were age 13 or older, they don’t qualify.

If the child is not UNDER age 13 (that is, 12 years old or under) during that tax year you don’t qualify.

1. Do you have a tax liability on line 16?
   • If not, the credit won’t calculate. It is nonrefundable credit and can only lower your tax liability. 
   • If you do have a tax liability, is the Child Tax Credit (line 13) eliminating the liability and giving you the Additional Child Tax Credit on line 28?
   • You may be getting the Child Tax Credit instead of the Credit for Child Care Expenses because you receive an additional credit on line 28.. If you took the Credit for Child Care Expenses, you would miss out on that additional credit on line 28.. It’s to your benefit to take the Child Tax Credit.
2. Do both spouses have earned income (W-2's)?
   • If only the Taxpayer or only the spouse has earned income, you cannot receive the credit.
   • Exception: If the nonworking spouse was a full-time student during any 5 months or was permanently disabled.
   • You just have to enter income for the non-working spouse to calculate the credit on Form 2441.

Check Form 2441, to do this go to:

1. Federal Section
2. Deductions - Select my Forms
3. Credits 
4. Child Care Credit - 3 horizontal dots to edit/delete entry
5. Continue to Page 2
6. Additional Income: For a full-time student, the amount is $250 per month if you’re claiming expenses for one qualifying child, $500 per month if claiming expenses for 2 or more qualifying children.

Spouse looking for work - you can claim the credit if you or your spouse needed child care while looking for work. However, if you did not find a job and have no earned income for the year, you cannot take the credit or the exclusion.

3. Is your filing status Married Filing Separate?

This credit can only be claimed using the Single, Married Filing Joint, Qualifying Widow(er), or Head of Household filing status.

It’s calculating Excess Social Security on line 10 of my Schedule 3. What is that?

Check the W-2 entries , to do this go to:

1. Federal Section
2. Income - Select my forms
3. W-2 - 3 horizontal dots to edit/delete entry
4. Check the W-2s. Are both W-2 forms for one person or are they for different people?
   • Make sure the correct person is listed as the owner of the W-2. 
   • Check the amounts in box 4 for all W-2s.
     • Is the amount in box 4 each W-2 correct?
     • Do the amounts in box 4 of all W-2s, for one person, total more than $9,114 for 2022?
     • If the total social security withheld for one person is more than yearly limit, set by the IRS, the excess amount is refunded. The limits are:
       • 2021: $8,853.60
       • 2020: $8,537.40
       • 2019: $8,239.80
       • 2018: $7,960.80

Schedule C is not showing my loss/income on the calculation

Check the Schedule C entries, to do this go to:

1. Federal Section
2. Income - Select my forms
3. Profit or Loss from Business - 3 horizontal dots to edit/delete entry
4. Questions About the Operation of Your Business
   • Is the box for “materially participated” checked? You need to check the box indicating you materially participated.
   • If you did not materially participate, the loss cannot be taken on your return.
   • If the box is checked and you are still having problems please contact our Customer Support team for additional assistance. 

Why does the Refund Generator say I owe my state when I paid taxes?

Check the W-2 entries - to do this go to:

1. Federal Section
2. Income - Select my forms
3. W-2 - 3 horizontal dots to edit/delete entry

Look specifically at your state W-2 information (scroll down near bottom of screen). Make sure the state information reflects what your original W-2 has listed. If there were state taxes withheld, there should be an entry in box 17 of the W-2.