# CashApp Tax Problem

**URL:** <https://community.clark.com/t/cashapp-tax-problem/4499>\
**Category:** Taxes\
**Created:** [February 26, 2024, 4:12pm UTC](https://community.clark.com/t/cashapp-tax-problem/4499 "2024-02-26T16:12:30Z")\
**Posts on this page:** 6\
**Page:** 1

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**Author:** ![Steve\_Burns](https://sea2.discourse-cdn.com/flex016/user_avatar/community.clark.com/steve_burns/32/417_2.png) [@Steve\_Burns](https://community.clark.com/u/Steve_Burns)\
**Post date:** [February 26, 2024, 4:12pm UTC](https://community.clark.com/t/cashapp-tax-problem/4499/1 "2024-02-26T16:12:30Z")

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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.

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**Author:** ![Lancie01](https://avatars.discourse-cdn.com/v4/letter/l/c57346/32.png) [@Lancie01](https://community.clark.com/u/Lancie01)\
**Post date:** [February 26, 2024, 5:09pm UTC](https://community.clark.com/t/cashapp-tax-problem/4499/2 "2024-02-26T17:09:15Z")

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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.

> **[Schedule-1.pdf](https://www.michigan.gov/taxes/-/media/Project/Websites/taxes/Forms/2022/2022-IIT-Forms/Schedule-1.pdf?rev=41e5d1a7c87a40a6a2870ca75f7f33c1&hash=0DD93AE8977FF9FE235EB56DDBBC0F33)**

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**Author:** ![Steve\_Burns](https://sea2.discourse-cdn.com/flex016/user_avatar/community.clark.com/steve_burns/32/417_2.png) [@Steve\_Burns](https://community.clark.com/u/Steve_Burns)\
**Post date:** [February 26, 2024, 5:52pm UTC](https://community.clark.com/t/cashapp-tax-problem/4499/3 "2024-02-26T17:52:20Z")

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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.

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**Author:** ![Lancie01](https://avatars.discourse-cdn.com/v4/letter/l/c57346/32.png) [@Lancie01](https://community.clark.com/u/Lancie01)\
**Post date:** [February 26, 2024, 8:38pm UTC](https://community.clark.com/t/cashapp-tax-problem/4499/4 "2024-02-26T20:38:25Z")

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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.

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**Author:** ![Steve\_Burns](https://sea2.discourse-cdn.com/flex016/user_avatar/community.clark.com/steve_burns/32/417_2.png) [@Steve\_Burns](https://community.clark.com/u/Steve_Burns)\
**Post date:** [February 27, 2024, 12:01am UTC](https://community.clark.com/t/cashapp-tax-problem/4499/5 "2024-02-27T00:01:59Z")

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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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**Author:** ![Steve\_Burns](https://sea2.discourse-cdn.com/flex016/user_avatar/community.clark.com/steve_burns/32/417_2.png) [@Steve\_Burns](https://community.clark.com/u/Steve_Burns)\
**Post date:** [April 6, 2024, 9:00pm UTC](https://community.clark.com/t/cashapp-tax-problem/4499/6 "2024-04-06T21:00:07Z")

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