TurboTax alerts users of problems with some residential energy tax credit claims

Inflation adjustments that will apply to Americans living abroad in 2025

Law changes, inflation boost benefits of tax-favored retirement plans, especially for older workers

TurboTax alerts users of problems with some residential energy tax credit claims

Thursday, October 31, 2024

Own-your-error-scrabble-tiles_pexels-brettjordan-6700369

Here’s a subject line you never want to see in your email box: There’s a problem with your tax return.

But that is what’s happening to some taxpayers.

No, it wasn’t from the Internal Revenue Service. Uncle Sam snail mails you a tax notice with questions about your filing.

Rather, it was an email from TurboTax to its users with the subject line —

CRITICAL NOTICE: Regarding your 2023 TurboTax return

And here’s the message —

Hi there,

We’re contacting you because there might be an issue with the accuracy of your 2023 tax return. Due to a TurboTax error, some customers might have overpaid their federal, and if applicable, state taxes.

You’ll need to amend your tax return if you’re claiming the Residential Clean Energy Credit on your second home. Please follow the steps detailed in this article: How do I amend my 2023 tax return to claim the Residential Clean Energy Credit? [Story link removed.]

If you do need to amend your tax return, we’ll refund you $60 to cover the cost of our TurboTax CD/Download product.* No need to call and request the refund. Your refund will automatically be applied to the same payment method you used to pay for TurboTax.

TurboTax experts are available to answer your questions at 844-333-2161 (Monday–Friday, 5 AM to 5 PM PT). When you speak with an expert, just mention 2023 Residential Energy Credit on Second Home so they know exactly what you’re calling about.

We truly apologize for any inconvenience this might have caused and want to thank you for being part of the TurboTax family.

Warm regards,
The TurboTax Team

At least the issues is an overpayment. It’s worth filing Form 1040-X to get back your money.

Refunds delivery options: As for more money, the asterisk in the email leads to more information in following note about a refund if you have to download more software from the company to amend you erroneous return.

TurboTax says the refund will be applied to the same payment method you used to pay for the Intuit tax software, usually within two to three week.

If you paid for TurboTax using the company’s Refund Processing Service, or purchased it through a third party vendor, the company says it will mail you a check within 21 days.

People who used any version of TurboTax should have received this email. Those who signed up for texts from the company also should get a message urging them to look for the email.

So, if you’re a TurboTax customer, double check your inbox or spam folder. Then double check your return.

Recurring residential energy tax credit problems: I’m not focusing on this TurboTax error just to pick on the tax software company. No person or product is perfect. And the company is reaching out to customers so they can correct any filing error.

But it is interesting that the residential energy credit problem that popped up a couple of weeks after the extended filing deadline also was an issue for TurboTax filers earlier this year.

As software users tried to complete and file their 2023 tax returns in January, those who wanted to claim the tax break for making home energy efficient improvements per the Inflation Reduction Act changes ran into a form roadblock.

First, Form 5695, Residential Energy Credits, wasn’t available. Then users found problems with it.

One TurboTax community board poster captured the mood of his fellow software users in the same stalled tax boat:

Is Form 5695 ever going to be corrected in TurboTax? The IRS has had the updated form on their website for weeks. Yet the TurboTax form still has an erroneous "Smart Worksheet" for Line 18 that imposes a lifetime limit, which is NOT the law for this year. And Line 18 on the form is correctly the line for Insulation or air sealing material or system. So TurboTax has the updated form, but has not updated its worksheets and is erroneously denying credits.

The form finally was available to users on Feb. 8. But by then, early TurboTax filers who wanted to get their returns, including the claiming of this tax break, to the IRS early so they could get refunds were not happy.

“I think this year is going to be the year where TurboTax finally convinced me to stop using TurboTax,” said a user discussing Form 5695 issue on a Reddit forum.

Explore your filing options now: Again, I’m really not piling on the popular tax software. If TurboTax or one of the other tax preparation software programs has worked well for you over the years, great. Keep using it.

But its issues this year with a specific tax benefit is a good reminder that you, like the disgruntled Reddit poster, might want to reassess how you do your taxes. And now, with the 2025 filing season just two months away, is a good time to explore all your options.

Here are some other tax filing choices.

Free File will be back in 2025 (and beyond). The 2025 filing season participating companies will be announced in mid-to-early January. You can check out the tax software providers who were part of Free File this year for an idea of what they offered taxpayers eligible to use the no-cost tax preparation and electronic filing option.

Direct File, the IRS’ own tax prep and e-filing program, will be available in 2025 to qualifying taxpayers in 24 states. A dozen — Arizona, California, Florida, Massachusetts, Nevada, New Hampshire, New York, South Dakota, Tennessee, Texas, Washington, and Wyoming — were part of the Direct File pilot for the 2024 filing season. Next year, qualifying taxpayers in Alaska, Connecticut, Idaho, Kansas, Maine, Maryland, New Jersey, New Mexico, North Carolina, Oregon, Pennsylvania, and Wisconsin also will be able to use Direct File.

In addition to expanding geographically, the IRS also has enhanced Direct File offerings so that more taxpayers will be eligible to use it.

Finally, if you want more personal tax help, Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) sites also will be open across the United States next filing season. My post on VITA and TCE volunteers has more on how they can help.

And if it’s finally time to hire a tax professional, start your search now. Reputable tax pros’ client lists fill up quickly. My post on picking the perfect tax pro for your filing (and more) needs looks at the tax pro selection process.

You also might find these items of interest:

Comments

You can follow this conversation by subscribing to the comment feed for this post.

Verify your Comment

Previewing your Comment

Posted by: |

This is only a preview. Your comment has not yet been posted.

Your comment could not be posted. Error type:

Your comment has been saved. Comments are moderated and will not appear until approved by the author. Post another comment

The letters and numbers you entered did not match the image. Please try again.

As a final step before posting your comment, enter the letters and numbers you see in the image below. This prevents automated programs from posting comments.

Having trouble reading this image? View an alternate.

Today's Tax Tip

10 December tax moves — I love Santa Claus, but even the Jolly Old Elf isn’t magical enough provide the tax solutions you asked for in your letter to him. You’re going to have to make some tax moves this December yourself, like these 10 suggestions. (Dec. 1, 2024)
The 2024 Tax Tips offer ways to file your annual return, along with post-filing advice, important tax news and, of course, ways to cut your current tax year bill. You'll find the monthly assemblages on their own respective pages: January, February, March, April, May, June, July, August, September, October, November and December. Remember, tax tasks and tips don't stop after you file your annual return!

All About Kay

OK, some about Kay

Kay Bell — Native Texan
(the blog title totally makes sense now, right?). Professional journalist. Tax geek.
LinkTree

My Other Accounts

Tick ... Tick ... Tick

Tax Season 2024 Final Push

It's over! The final 2023 tax year extended filing deadline has passed, unless you get more time because your filing due date was extended further by a natural disaster like the three hurricanes that have made landfall in Florida this fall.

For most of us, though, the passage of Oct. 15 means it's time to focus on the tax return we'll file next year. We have until Dec. 31 this year to make moves that will reduce our already accruing 2024 tax bill. The monthly tips and reminders a little further down this column suggest ways to do just that.

Finally, keep an eye on the countdown clock just below. It's keeping track of just how many days are left for us to make these tax moves.
Note: I'm in the Central Time Zone, so adjust accordingly for where you live.

Time for Tax Tasks

Ho 🎅 Ho 🎅 Ho!
December is here!
You better watch out. You better not cry. But you better make some year-end tax moves this December or next April 15 could turn out to be the tax equivalent of Santa Claus putting coal in your stocking.

Click image to hear a musical Santa message from The Boss, Bruce Springsteen.
OK, St. Nick can't deliver a festively wrapped, already prepared tax return for you (unless he's even more magical than I think!) to file next year, but he does have a tax connection.
Santa's tracking of naughty and nice boys and girls basically is the same method that the Internal Revenue Service uses. That's why we all need to be nice, especially to ourselves, in this final month of the year by making some important tax-saving moves. Let's get to it!
Dec. 1: It’s here. The last month of the year, meaning the last 31 days to make tax moves that could shave some off your 2024 tax bill, as well as set up 2025 as another saving, and easy, tax year. You could make things even easier on yourself if you opt next filing season to turn over your taxes to a professional. The key is picking the perfect tax pro for your filing (and more) needs. And you need to start your search now, as the good tax pros’ client lists fill up fast. If you can hire one soon, there’s a December bonus. You might get some year-end tax tips!

Dec. 4: In the meantime, check out these 10 tax moves to make in December. They could be the perfect tax present to give yourself.

Dec. 10: Do you work as a server at a restaurant or at any other establishment where gratuities from customers are part of your compensation? I hope you get all the tips you deserve for doing your job well. Remember, though, that those tips are taxable income.

Whether you're dining at your favorite eatery or getting food delivered to your home, if a tip isn't included on your restaurant or delivery bill, click the image above to calculate how much to tip the person who brought it to you.

And if you got at least $20 in gratuities in November for your extraordinary services as a food server or hair stylist or parking valet or whatever job where tipping is common, you must report that amount by today. Use Form 4070 to let your employer know the total tips you took in last month.

Dec. 13: It’s the holiday season, full of joy and peace and goodwill toward all. So what the heck is a Friday the 13thh doing in December? Don’t worry, as least not about tax fears and superstitions. Check out the tax truth about these 13 tax misperceptions. They’ll help get you through today and help you be a fearless taxpayer year-round.

Dec. 15: Christmas is just 10 days away! If you're still shopping for gifts, you're probably searching for the perfect present online. But beware and be wary. Internet crooks also are logged on, looking to steal your money and identity. Many of the holiday scams use the same techniques as tax scammers employ. Any personal information they get now can be used at tax time to file a fake return in your name and claim a fraudulent refund. So be careful out there, now and next filing season, and, well, unfortunately all the time.

Dec. 19: Are you taking on multiple gig jobs to make some extra holiday cash to pay for all those online orders? Those added side hustles mean you're an independent contractor. And that means you're responsible for paying income taxes due on the money, as well as any self-employment tax. In most cases, that means paying estimated tax on these end-of-year earnings by Jan. 15, 2025, to avoid a possible penalty for not paying as you earned the money.

Dec. 23: It's Christmas Week! That means holiday treats, final decorations — or first, if you wait until the very end to get a tree — and frantic last-minute shopping! Rather than worry about how you'll get the perfect gift under the tree on time, consider instead giving some easy tax-favored presents. Open a Roth IRA for your child or grandchild who earned some money this year. Or pay tuition by Dec. 31 for classes that will start in the first quarter of 2025.

Dec. 24: Christmas Eve!
No taxes tonight. It's early to bed for kiddies of all ages. Santa's on his way!

Click image to watch NORAD track Santa's Christmas Eve delivery route.

Dec. 25: Merry Christmas! My gift to you is another day without tax thoughts.
Just enjoy the holiday and your family and friends.

Dec. 26: Happy Boxing Day. This unofficial holiday on St. Stephen's Day is celebrated by additional giving.
If you donate to your favorite charity on this Boxing Day or any other day by Dec. 31, on your 2023 taxes you'll have to itemize your gifts on Schedule A to claim them. If you don’t have enough expenses to exceed your standard deduction amount this tax year, consider delaying your charitable contributions until early January as part of a tax deduction bunching strategy.

Dec. 31: This is it. The drop-dead deadline to make most 2024 tax moves. A quick and easy action today is to zero out your medical flexible spending account (FSA) by buying over-the-counter medications for which the funds can be used. This is especially important if your employer doesn't offer a grace period to use the money or let you roll some FSA money over into 2025. Without those alternatives, you'll lose any FSA funds you don't use.

Done? Great! Make sure the champagne is chilling and settle in for your New Year's Eve party or a cozy night at home with your friends and loved ones. Either way, cheers and Auld Lang Syne as the ball drops at midnight.

Small Business Tax Calendar: Important filing, deposit and record keeping dates throughout the year that your company needs to know. You can get more tax calendar information at the IRS' online calendar page and view the full year's important business and individual tax dates in IRS Pub. 509.

State Tax Help

Don't forget your state taxes!
Forty-three states and D.C. collect personal income taxes. But even if you live in of the seven states without an income levy, you still face other state (and local) taxes.

State Tax Departments provides links to your state's Web page. The companion page, Tax Tidbits, is the compilation of blurbs about each state's tax laws. And for more state tax news, check out all our state tax bloggings.

Tax Forms

Thanks to our increased use of tax preparers and computer software, many of us don't see our tax forms until we sign and file them. But knowing what's on these documents, either in paper or digital form, and why the IRS wants it is key to understanding our tax system. And knowledge definitely is power, especially when it comes to tax savings. Find this valuable information in the ol' blog's special Tax Forms 2024 page.

What are you looking for?

Looking for something in particular? Start with the Table of Contents.
Or check out the Archives, where you can review posts by month and category. Or enter specific keywords in the box below to search
Don't Mess With Taxes.

Search

Subscribe:
E-mail, RSS or both!

Enter your Email

Powered by FeedBlitz
RSS

Affiliate Books

The Truth
About Paying Fewer Taxes
Are you a tax geek? Got tax geek friends? Do you or they just want to make sure you don't overpay the IRS? Then my book, "The Truth About Paying Fewer Taxes," is for all y'all.

Look for it on bookstore shelves
or order a copy (or two!) from
Amazon or Barnes & Noble.
Find out more about my book and excerpted chapters at the FT Press
Truth About Paying
Fewer Taxes Web page.
You can read more
of Kay's tax insights in ...

Kay Bell helps you build
a solid tax foundation in
"Personal Finance: An Encyclopedia
of Modern Money Management"

Kay Bell breaks down taxes and
estate planning for millennials in
"Future Millionaires' Guidebook"

A collection of Kay Bell stories
is included in
"The Gambler's Guide to Taxes:
How to Keep More
of What You Win"

Tax Reading Room
You also might enjoy these other tax tips from some of my tax-writing colleagues:
J.K. Lasser 2024 Taxes
Taxes for Dummies 2024
Tax Savvy for Small Business

~~~~~~~
Don't Mess With Taxes
is an Amazon Affiliate.
If you click on the product links above and/or buy the items,
I will be compensated.

0, 1, 2, 3, 4, 5, 6, 7, 8, 9 ...

Taxes are all about the numbers.
Check out these (mostly) weekly
By the Numbers figures.

Kudos Et Cetera

National Association
for Women in Communications
Winner, Best Personal Blog
2012, 2014 & 2017
Plutus Financial Bloggers Awards
Celebrating the Best
in Personal Finance
Winner, Best Tax Blog
2011 and 2013
Lifetime Achievement Nominee 2020

I gotta tell ya ...

AKA Disclaimer:

I am a professional journalist who has been covering tax issues since 1999. I am not a professional tax preparer.

The content on Don't Mess With Taxes is my personal interpretation and opinion based on my study and understanding of tax laws, policies, and regulations. It is provided for your private, noncommercial, educational, and informational purposes only. While I work to ensure each post's accuracy, the items are not recommendations of any specific tax action(s) you should or should not take. Similarly, mentions of commercial tax products or services are not endorsements.

In other words, my ramblings on the ol' tax blog are free advice, and you know what they say about getting what you pay for. That's why when it is time for you to file your own taxes, I urge you to get additional, professional, paid-for guidance from an accountant, Enrolled Agent, or other reputable, qualified tax preparer who is familiar with your individual tax circumstances.

Privacy Policy

Wondering what happens to your information once you subscribe? Don't worry. Don't Mess With Taxes respects your wish not to be a mere data source. Check the ol' blog's privacy policy at the Table of Contents page, as well as on the separate Privacy Policy page.

©©©©© & ®®®®®

Don't Mess With Taxes®
is a registered trademark
of S. Kay Bell.

All content on this site is
© 2005-2024 S. Kay Bell
dba Write Here, a division of
SKB Editorial Services, LLC
And a bit of housekeeping.
Note 1: Some of the links on this site
are affiliate links. That means that
if you click through from
a Don't Mess With Taxes link
and then buy the product,
I receive a commission.

Note 2: Links to outside content
might become inactive due to changes
at the copy's originating website.
If you discover dead links, please e-mail me the details. Thanks.

Note 3: The banner art for the ol' blog
is courtesy Pictures of Money
via Flickr Creative Commons.

Blog powered by Typepad
Member since 11/2005

COVID-19 & Taxes

Coronavirus has wreaked havoc
on the 2020 and 2021 tax seasons.
These five Coronavirus (COVID-19) and Taxes pages have details:
March-July 2020
August-December 2020
January-December 2021
January-December 2022
…and so it continues into 2023
…and, alas, into 2024
You can find medical coronavirus resource links in the next section.

COVID-19 Resources

Need help finding a coronavirus vaccine in the United States?
Call 1-800-232-0233
or TTY 1-888-720-7489.
More information and resources at:
CDC Vaccines
CDC Booster Shots
HHS Combat COVID
USA.Gov COVID Info

December 2024

..................................................

Photo by Isaac Martin on Unsplash

Tell it to the Hill

While it's easy to rail at the IRS, for the most part we can thank — or blame — Congress and the White House for our tax laws. So if you have an issue with tax legislation or want a tax bill passed, you need to let your federal legislators and the White House occupant know of your concerns. You can find out who in Washington, D.C., to contact (and how), as well as get information on your local lawmakers for matters, tax or otherwise, closer to home, at USA Gov.

Don't Mess With Taxes

Translating taxes into money-saving English