CashApp Tax Problem

On my 2023 Michigan return CashApp Tax is reporting an INCORRECT standard deduction of $14,722 NOT the correct amount of $20,000. I have contacted them and reported it to Michigan but as of this writing I have not heard back.

The Michigan state tax “Standard Deduction” can vary based on a big number of variables including martial status, age, retirement, and other factors. There are 3 tiers for this deduction, Tier 1, Tier 2, and Tier 3. Most likely you are in a Tier that makes your deduction lower than you thought.

I am single, 72 and retired. I am in Tier 2 and have been for several years. According to the State of Michigan the Standard Deduction should be $20,000 as it was last year, not $14,722 which is not applicable to any Tier. Besides, amounts have never been odd numbers.

Apparently some computer program has you mixed up with something else. The current generation of programmers are not dedicated, not very knowledgeable, and cannot focus very long.

Got an answer from them. They acnowledge an “issue” with thier software and are hoping for a fix by the end of the week.

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No, CashApp made a mistake and corrected it after I brought it to their attention!