The Motley Fool Discussion Boards
Financial Planning / Tax Strategies
|Subject: Re: Scholarships & SE Tax||Date: 4/15/2013 2:23 AM|
|Author: TMFPMarti||Number: 118439 of 121061|
Does anybody know if this could be a bug in Turbo Tax, or whether any of the tax changes this year included a new ruling on Self Employment Tax on Scholarships?
Carole, let's see what's behind Door # 3. Ah, input error. Maybe, but a definite third possibility. We can eliminate a change in the law since there wasn't one, and I doubt it's a bug, but I'm not yet willing to blame GIGO.
The missing piece of information is whether he got a W-2 or 1099-MISC for the taxable portion. If not it should be shown on line 7 of the 1040. See Chapter 1 of Pub 970.
As to where in the process he told TT it was subject to S/E tax, beats me. The first thing to check is any input forms, looking for errant check boxes that would lead the software astray. If that doesn't clear it up, have him walk back through the process with an aide standing over his shoulder.
Rule Your Retirement Home Fool
|Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us|