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ProSeries Professional appears to have computational error in taxable SS when unemployment exclusion under ARPA 2021

danatsmith
Level 2

This has been resolved. Thank you to those who directed me to  IRC S 86(b)(2)(A) and 85(c)(2).

ProSeries appears to have computational error in taxable SS when unemployment exclusion under ARPA 2021. Social Security Benefits Worksheet, line 3 should be pulling $s from the lines described, one of which is Schedule 1, line 9. Sch. 1, line 9 is the amount after the $10,200 unemployment exclusion. As of 3.20.2021 11am it is not. The total on Social Security Benefits Worksheet, line 3 is the same amount as before the unemployment exclusion program update.  I became aware only because I had done a Tax Planner projection to let the client know the potential savings from amending the return for.  The Planner and the tax return compute different amounts of what is taxable social security benefits.  I spoke with ProSeries this am to see which computation is correct and report their software issue. While the support person was kind, she had no idea.  Anyone else seeing this?  

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7 Replies 7
TaxGuyBill
Level 15
Sandy19
Level 2

I filed a return on 4/11/21 and the calculation was still incorrect.  Received notice from IRS - while my stepmom was happy to receive additional refund - it did not make me feel confident about the software I am paying good money to utilize.

 

0 Cheers
qbteachmt
Level 15

"and the calculation was still incorrect."

Other than the IRS releasing that they would address early UI filings from before it was being exempted from being taxable, up to the first $10,200, which calculation is "the calculation" that still is incorrect in ProSeries, and is that true once you confirm you updated your program, and also confirmed you are not looking at something you filed back in April?

Because it being "still incorrect" implies all updates were put in place before making this comment. All you can do now is confirm the Program Updates for ProSeries finally caught up with the late changes in the Fed (and State) provisions, or not, as Specifics. Not generically, that something in April was wrong based on the regulations that are now in place, based on late law changes.

This topic is from March. This is July. Everything has changed.

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"Level Up" is a gaming function, not a real life function.
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Sandy19
Level 2

I'm not sure who you are - but I really don't appreciate your response.

1.  The posting said that ProSeries made the correction to the software in March.  IF the correction had been made in MARCH, when I filed a tax return in APRIL, the computation for the taxable portion of Social Security should have been adjusted.  

2.  I cannot efile a return unless the latest software has been downloaded - so I should have had the "corrected" software.

3.  The notice from the IRS was received in JULY - that was my reason for reviewing the return again and looking online for the possible reasons.

So it is pretty obvious that the software was NOT corrected in MARCH.

0 Cheers
qbteachmt
Level 15

I'm not sure who you are, either; but that should not matter.

Of course the topic from March discusses a March update. But this is July. There have been Tons of updates since March. This topic really is too old to apply now. That's one of my points.

"the computation for the taxable portion of Social Security should have been adjusted."

Did you read this topic in full? First, the original poster provided an edited update and stated "been resolved." And that's because TaxGuyBill explained the understanding was incorrect and the Program was fine. That's why it isn't clear how something that never was incorrect can "still be" incorrect.

And what I explained is that the UI was a known issue the IRS stated they would address. Meanwhile, you never stated what it was about your Program that made your Stepmom's return wrong and what it is the IRS corrected, nor if you overrode something or otherwise bypassed something that The IRS reference provided by TaxGuyBill shows the program hadn't been wrong back in March/April, anyway.

Don't you see how confusing you have made this? What we need is Details, not "my stepmom loved getting money back, but now I am worried about paying for software" that was not doing it wrong in March, anyway.

If you are not here as a peer user to have a discussion, you are not understanding this peer community forum. If you think you are complaining to Intuit tech support or customer support, that isn't the audience. Complaining to peer users isn't effective. Explaining to peer users would be helpful.

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"Level Up" is a gaming function, not a real life function.
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Keet
Level 2

Yes, I posted yesterday that it was not taken it into the calculation and today reread the instruction and the calculation is incorrect.  It affects it seems every other calculation so unless they are intentional hurting the people with fixed income and disabilities, it is an error.  Would not put past hurting the retirees as the stimulus payments only go to those that file tax returns now and if they have not filed for a while, would not know to file now.

0 Cheers
qbteachmt
Level 15

@Keet 

"Yes, I posted yesterday that it was not taken it into the calculation and today reread the instruction and the calculation is incorrect."

Then you should start a topic of your own and put that info in the topic for discussion and review. All you did so far is blame the government that old people are being hurt and that the computation is incorrect. However, twice you are given the info that it is right.

So, please share something meaningful.

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"Level Up" is a gaming function, not a real life function.