Has anyone actually compared the ACTUAL TAX FORMS between the two software? Not just the summaries, but download the actual Form 1040 and all schedules from both and compare them line by line? That's the only way to really see where the difference is coming from. I had a similar issue last year and it turned out one software was putting a business expense on the wrong line, which cascaded into a huge difference in the final calculation.

For the self-employed health insurance premium deduction, you need to make sure you meet all the qualification requirements. The deduction goes on Schedule 1, Line 17, but there are several conditions: 1. You must have net self-employment income from the business under which the health insurance plan is established 2. You can't be eligible for coverage under your spouse's employer health plan (if married) 3. You can't be eligible for coverage under any employer health plan for the months you're claiming the deduction 4. The deduction can't exceed your net profit from self-employment The most common mistake I see is people trying to deduct more in premiums than they actually earned from self-employment. If your SE income was $23k, your health insurance premium deduction is capped at that amount. Check both software to see how they're handling these limitations. TurboTax might be correctly applying the full deduction while FreeTaxUSA might be incorrectly limiting it, or vice versa. You'll need to manually verify which calculation follows the IRS rules properly.

Ok but what if my client paid exactly 90% and not a penny more? Does the software round in their favor or does it need to be slightly over 90%? Our firm uses different software and I'm curious if there are any edge cases I should watch for.

This is a great discussion! I've been dealing with similar penalty calculations and it's clear there's a lot of nuance here that even experienced practitioners sometimes miss. From what I'm seeing in the responses, it sounds like Ultratax might actually be correct in your situation. The combination of filing an extension AND paying at least 90% by the original due date does provide some protection from the Failure to Pay penalty during the extension period. However, I'd still recommend double-checking this with the IRS directly or using one of the tools mentioned here to verify. The stakes are too high to just assume the software is right without confirmation. I've seen cases where software gets updated penalty calculations wrong, especially when there are special provisions or recent rule changes. Also worth noting - even if the Failure to Pay penalty doesn't apply during the extension period, make sure your client understands that interest is still accruing from the original due date on that unpaid $8,000. That can add up over time even without penalties.

Here's a simple breakdown of the main sections on a Robinhood 1099-B: 1A: Short-term transactions with basis reported to the IRS 1B: Short-term transactions with basis NOT reported to the IRS 1D: Proceeds from broker transactions (total sales amount) 1E: Cost basis (what you paid) 1G: Gain or loss (what you're actually taxed on) The large number in 1D is just the total dollar amount of ALL your stock sales combined - like if you bought $1000 of stock and sold it at $1100, then that $1100 goes in 1D, but you're only taxed on the $100 profit.

I used to be a tax preparer and saw this confusion ALL THE TIME. One thing not mentioned yet: check if your Robinhood 1099 has supplemental information pages. They often include a summary that breaks down your actual taxable gains/losses more clearly than the main form. The IRS only cares about your profits/losses, not the total amount of money that moved through your account. The big number in section 1D freaks everyone out, but it's just the sum of all your sales, regardless of whether you made or lost money on those transactions.

Check your account transcript not return transcript. Sometimes return transcript takes longer to update but account transcript will show processing status

Same boat here - filed and accepted 2/5, no transcript updates yet either. I've been checking daily (probably too much lol). From what I've read on here and other forums, the IRS is still ramping up their systems for the season. Early filers often get caught in this limbo period. Try not to stress too much about it, though I know that's easier said than done when rent's coming up! Keep checking your transcripts every few days but don't drive yourself crazy with daily checks.

Has anyone who filed on 2/11 received any updates yet? It's like our returns are stuck in a traffic jam while later filers zoom past us on the express lane. I'm wondering if there's something specific about that filing date that's causing issues - like how sometimes a specific batch of mail gets misrouted and arrives later than mail sent days afterward?

I'm in the exact same situation! Filed 2/11, accepted same day, and still stuck on the first bar of WMR with transcript showing N/A. I've been checking daily like clockwork and it's driving me crazy. What's even more frustrating is seeing people who filed weeks after us already getting their refunds. I called the IRS twice but gave up after waiting over an hour each time. At this point I'm wondering if there was some kind of system glitch with the 2/11 batch that's causing all of us to be stuck in limbo together. Has anyone found any official explanation for why this specific date seems to be problematic?