Issue

Things To Check

Reason / Instructions

The tax on Form 1040 line 44 isn’t the same as the tax tables.

Do you have capital gains (line 13) or qualified dividends (line 9b)? If so, look at your PDF and see if there is a Qualified Dividends and Capital Gains Worksheet at the end of their federal return forms. Most likely there is.

When you have qualified dividends or capital gains, you don’t use the tax tables. You use a worksheet to figure your tax. You can view this worksheet by viewing the PDF. Go to Summary> Create a PDF > click the printer icon and open the return.

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

1) Have you entered expenses in both sections: Dependents and Credits > Form 2441?

2) 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.

3) Do you have a tax liability on line 46? If not, the credit won’t calculate. It’s nonrefundable.

• If you do have a tax liability, is the Child Tax Credit (line 53) eliminating the liability and giving you the Additional Child Tax Credit on line 65?

4) Do both spouses have earned income (W2s)? If only the Taxpayer or only the spouse has earned income, you cannot receive the credit unless the nonworking spouse was a full-time student during any 5 months or was permanently disabled.

1) If not, go to Federal Section > Deduction (Enter Myself) > Credits > Child Care Credit and enter info for Child Care Provider and then the Qualifying Person listed or not listed on 1040.

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

3) You don’t have a tax liability. This credit is only used to reduce the amount of tax that is listed on line 46. If there is no amount, you can’t get the credit.

• You are getting the Child Tax Credit instead of the Credit for Child Care Expenses because you receive an additional credit on line 68. If you took the Credit for Child Care Expenses, you would miss out on that additional credit on line 68. It’s to your benefit to take the Child Tax Credit.

4) Both spouses have to have income. However, only one is listed as having income. If your spouse has a W2, you’ll need to enter that to be able to take the credit. If not and your spouse did not work, you are not eligible.

• If the nonworking spouse was a full-time student during any 5 months or disabled, you can still take the credit. You just have to enter income for the calculation on Form 2441. To do this go to in Credits Menu > Child Care Credit > Additional Income. It’s $250 per month that they were a full-time student if you’re claiming expenses for one qualifying child, $500 per month if claiming expenses for 2 or more qualifying children.

It’s calculating Excess Social Security on line 69. What is that?

1) Check the W-2s. Are both for one person or are they for different people? Most likely they are both listed them for one person.

2) Check the amounts in box 4 for all W-2s. If one amount seems rather large, verify this on your form.

3) Do the amounts on the W-2s for one person add up to more than $4,485.60 for 2011 and $4,624.20 for 2012.

1) Are all the W-2s yours? If not, just change the person in the Employee section of the correct W-2 and this should fix the calculation.

2) Is the amount in box 4 of the W-2 for (employer name) correct? This seems rather high.

3) Based on what you entered, you had more social security withheld than you should have. Each year, the IRS sets a limit as to how much an employer should withhold. That amount for 2011 is $4,485.60 and for 2012 is $4,624.20. Based on what you entered, your employer(s) withheld more and this amount is what goes on line 67.

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

1) Go to Federal Section > Income (Enter Myself)>Income Menu > Business Income/Loss > Edit > Questions

Is the box for “materially participated” checked? Most likely it’s not.

2) If the box is checked and you are still having problems please contact our Support team for additional assistance.

1) You need to check the box indicating you materially participated. If you didn’t materially participate, the loss cannot be taken on your return.

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

1) Look at how you entered your state W-2 information. Go to Federal section > Income (Enter Myself) > Wages and Salaries > Edit (view each W-2 entered) > make sure there’s an entry in box 17 for each W-2 you have entered.

1) Generally when you owe an amount to the state you have forgotten to enter the amount you’ve already paid in state taxes.