Turbo Tax and Code DD

[DaveinTexas]

Just a heads up, I have had 3 new clients in my office recently with prior (2011) and current (2012) Turbo Tax prepared returns (hold your moans). Every return had the same issue, Code DD in box 12 of the W2 was entered incorrectly (not sure how) in the software causing the amount in box 12 to be subject to tax.

One of the new clients overstated her taxes by $9,000 because of this mishap; Que Ridiculo!!!. If you have clients that have friends/family using Turbo Tax to prepare their returns, this may be an opportunity to offer your service of preparing amended returns. I just prepared one for a client, saving them $1,800 in taxes.

We do this all the time in my office, it's all a part of our "Discount Double Check" service!!! That was a joke. But when you amend a return for a new client and save them a few dollars, many times this transforms them from do it yourselfers to loyal clients.

Anyway, I hope everyone survived the season, now it's time for CPE and sleeping in the back of the seminar room!!!

[JoshinNC]

TT doesn't prepare returns

Just a heads up, I have had 3 new clients in my office recently with prior (2011) and current (2012) Turbo Tax prepared returns (hold your moans).

TP's do prepare them using TT.

[taxmom34]

I used TT this year for family members and three of the five returns had DD on W2 and I had no problem with entering that info. however, on one the employer issued a separate W2 to report the DD and that person couldn't efile because that W2 had no wages. Any program is only as good as the person entering information. can't blame TT for this one.

[FEDUKE404]

NOT a software problem

I used TT this year for family members and three of the five returns had DD on W2 and I had no problem with entering that info. however, on one the employer issued a separate W2 to report the DD and that person couldn't efile because that W2 had no wages. Any program is only as good as the person entering information. can't blame TT for this one.

Agreed.

If code "DD" is entered in the pull-down menu for Box 12 of Form W2, there is no tax impact for 2012. In fact, the on-screen info for the code actually shows "The amount reported with code DD is not taxable."

Like taxmom34, I've had exposure to TurboTax returns over the years, to include the "DD" issues for 2011 and 2012 tax returns.

Absolutely no problems there. You cannot blame TurboTax/Intuit on that one!

Or, more simply stated, it sounds more an issue of GIGO rearing its ugly head once again.

FE

[Black Bart]

They're everywhere! They're everywhere!

Say what you will about 'em -- they've got us beat by a country mile as far as getting their word/wares out to the public (a TT ad inside my next box of cereal won't surprise me).

Starting on a client's return this morning, I opened his brokerage statement envelope. Here's the cover sheet:

"Hilliard Lyons is pleased to present your 2012 year-end tax package newly formatted for convenience and ease of use. Guidance on the contents of your package and Turbo Tax downloads can be found in the Tax Center at www.hilliard.com. Contact your Financial Consultant to request a copy of your 1099 Guide."

[DaveinTexas]

Only you are more sarcastic than me on this board

TP's do prepare them using TT.

I have one other person I interact with that is more sarcastic than you and I, and that is my Step Father who was a former Navy radio man in the 60's, an IRS Revenue Agent in the 70's, a former tax software Programmer in the 80's and owner of his own tax practice for over 30 years. Now he just plays golf and sarcastically chuckles at me during my busy season whilst racing his friends in his golf cart!!! I suppose you are in good company sir.

I know TT doesn't prepare tax returns on its own free will, the point is the American public trusts this tax program to assist them in accurately preparing a tax return (man these people need a hero) and this simple addition to the W2 should not cause this much trouble when it makes no impact on the tax return (no impact this year anyway).

I am unfamiliar with TT so I don't know the mechanics of the data entry but for more than one TP to get this wrong, and I have seen this problem discussed on the TT boards, something is going awry. Just an observation.