Wednesday, December 30, 2009
Following up on my January post, Geithner Blames Turbo Tax For His Tax Troubles:
Treasury Secretary nominee Timothy Geithner implied at his confirmation hearing that the mistakes in his tax returns were caused by his use of the TurboTax software program. Of course, as any tax professional knows, TurboTax (and any of the other leading software programs) easily calculates self-employment tax (as well as the disallowance of a dependent care deduction for the cost of your kids' overnight camps). The errors here were entirely Geithner's, not TurboTax's.
Mary O'Keeffe (Union College) provides screenshots showing that TurboTax has changed its tax preparation software for 2009 to prompt those working for an international organization like the IMF to report their self-employment income and pay self-employment taxes:
TurboTax Used by Geithner
Clicking on the "Explain This" link generates this explanation:
(Hat Tip: Joe Kristan.)