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Tax Calculation

bdp
Level 3

I electronically filed a client's tax return on 3/17/2021. A notice was received from the IRS claiming additional money was due. I viewed the tax return and noticed the tax calculation was changed.  The AGI and taxable income was the same. The PDF of the tax return that was e-filed was different that the one showing on my screen. The AGI and taxable income is the same as the original filed e-filed tax return. Has anyone else have this happen? I think it has to do with the way the capital gains was calculated on the original tax return.

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4 Replies 4
TaxGuyBill
Level 15

@bdp wrote:

The AGI and taxable income was the same.  The PDF of the tax return that was e-filed was different that the one showing on my screen.


 

So what DID change?  Was it actual income tax on Line 16 of the 1040?  Or did something else change (credits, deductions, AMT, etc., etc.)?

bdp
Level 3

The only thing that changed was the tax liability. The AGI and Taxable income remains the same.

TaxGuyBill
Level 15

If income tax on Line 16 was the only thing that changed, you are probably right, it is likely due to a different calculation of capital gain.

Any chance this is a taxpayer that was subject to Kiddie Tax?  I know there was an error in connection with that.

bdp
Level 3

Definitely not Kiddie Tax