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Taxcut and TurboTax give me different taxes due .....

I am using both TaxCut and TurboTax to do my taxes this year. (Do not ask why .....) Last year I did not need to and therefore did not make any Fed. estimated payments. But, it turns out I owe some tax for which the penalty both TC and TT calculated is minimal. So it is OK. But the total tax due is different in TC and TT with the same data.

I grew suspicious when I saw that TaxCut enters my "Total Payments" for

2007 (I made no payments) as $1,202. I understand the $1,200 coming from the government incentive, but cannot figure out where the extra $2 comes from. It is not a big amount, but it makes suspect TaxCut's calculations, especially as the total Fed tax due at the end is different between TaxCut and TurboTax using the same data!

Any ideas?

Jeff

Reply to
Jeff
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"Jeff" wrote

Well, there's a fatal flaw somewhere. The $1200 economic stimulus payment isn't part of the 2007 return program, forms, instructions, etc.

So back track to see what you did wrong in both programs.

Download the current updates for both programs and double check all entries. If you don't know how to prepare a return on paper, the software can't do it better.

I suspect you have a very large data entry error someplace.

Reply to
Paul Thomas, CPA

I found the $2 discrepancy. There was $2 withheld on an investment. So that is settled.

As for the $1200, I just assumed it came from the incentive because in both TurboTax and TaxCut, a "refund" of $1200 appeared in both programs soon after I entered the info to let it know I was married and filing jointly. I had not yet entered any financial info so I assumed that is what it was.

Both programs are up-to-date.

Jeff

Reply to
Jeff

"Jeff" wrote

Huh. Makes me glad I'm not using that software.

Reply to
Paul Thomas, CPA

Ah, now that I think about it of course you are correct. I think it must have been the standard deduction for me and my wife totaling $1,200 and it must have appeared a little later in my entries.

Reply to
Jeff

The standard deduction for MFJ is $10,700.

As to the $1200 - do you have dependents (children)? Are you mistaking the $1200 child tax credit for a refund, perhaps?

As someone said, tax software is very useful to enter data neatly, fill out the forms, and do the math, but is no substitute for knowing what you are doing.

Reply to
Ernie Klein

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