2020 Form 1040SR Miscalculation

[jblinn9610]

TurboTax said I was getting a refund but IRS says I owe due to miscalculation of form 1040SR.  What's happening?  The notice code on the IRS letter is CP11

[SForrestLO]

Please see this Turbo Tax FAQ for information on the notice. I got a CP11 Notice from the IRS

[VolvoGirl]

A common adjustment is if you claimed the Recovery rebate credit on 1040 line 30 when you already got the Stimulus payment or got the second one after you filed or reported the wrong amounts.  Do you have an amount on line 30?

[jblinn9610]

Yes, there is an amount in line 30 1040-SR.  It is 1200.00

[VolvoGirl]

Did you already get both Stimulus payments?  Or maybe get the second one after you filed?  1200 is the amount of the first one for Single or the second one for Joint or Single + 1 Child.

[jblinn9610]

We received the 2nd stimulus payment on 1/4/2.  We file joint so the total amount was 1200.00

[jblinn9610]

Here is the info from the IRS accounts site.  Since the dates were in 2021 I did not include this with the 2020 return.  It appears the IRS did.

Code  Explanation of Transaction      Date             Amount

766     Tax relief credit                     01-18-2021      -$1,200.00

846     Refund Issued                       01-04-2021       $1,200.00

This is going to be a headache at the end of this year if I have to remember these figures were part of 2020 instead of 2021.

[VolvoGirl · Accepted solution]

Yes you were suppose to enter the second 1200 you got in Jan 2021.  It even said that on the screen.   To see if you got the right amount and if you qualified for more based on your 2020 return.  Since you didn't enter it then it was claimed again on your return, which was wrong.  The IRS  knows they already sent it to you.

[jblinn9610]

Thanks, I finally see that.  My mind must have been on "auto pilot" and ignored anything after 2020.  At least I know now that the IRS is correct and understand it.

[tmrocket504]

I got the same letter. I was supposed to be getting a refund, but now the IRS is telling me I owe $1,035?! A few weeks after I e-filed I received a notice telling me that I had to fix my State return (CA). I did that & resubmitted & then suddenly the federal return changed from me initially getting a refund to now owing money. I immediately called TurboTax & spoke to a representative who told me that since I already filed the federal & it was accepted that it shouldn't make a difference. Fast forward to today, I get this letter from the IRS saying I owe $1,035. Fine, if I do, in fact, owe them money, I have no problem paying, however, my gripe is with TurboTax since they are the ones that automatically calculated things. I'm going to be requesting a full refund from them. We'll see how that goes...

[spatedot]

Have you gotten anywhere with this problem? Because The exact same thing happened to me and I can never get to where I can talk to a person for anyone to help me. I even paid for the extra support from Turbo tax.

[bwasley2011]

This whole thing is crazy.  My 1040 that I submitted 2/19/2020 showed my refund at $2168.  I subsequently got a notice from the IRS saying that I owe them $1094.36.  In reviewing my 2020 Tax Year filings with Turbo tax I discover that a 1040SR was somehow filed that gives me a refund of $4918.  I understand that the stimulus amount I received was somehow not claimed on my original 1040 causing me to have a liability.  My Tax Audit person (from Turbo Tax) had no command of the English language and proceeded to explain to me how the various lines of the 1040 are mathematically computed, something I completely understand.  To try and stop the explanation was fruitless.  I am very frustrated.  My question really is:  Who filed the 1040SR on my behalf?  I don't remember doing it.

[VolvoGirl]

The 1040SR is new starting in 2019.  It is the same as the regular 1040 just larger type But has the same line numbers.    You automatically get the SR if you or your spouse are 65.  If you are using the Desktop program there is a way to force the one you want.

2020 Compare them

1040SR  https://www.irs.gov/pub/irs-pdf/f1040s.pdf

1040   https://www.irs.gov/pub/irs-pdf/f1040.pdf

1040/1040SR Instructions  https://www.irs.gov/pub/irs-pdf/i1040gi.pdf

If you use the Desktop program you can switch to forms and the Info Wks part II has a selection to select 1040SR or not.  You can not change it in the Online versions.   In the Online version if you want to use the regular 1040 form, you can print out the 1040SR and copy the amounts onto the 1040 and then mail your return.

[VolvoGirl]

If your refund on Turbo Tax changed......

Did you enter any unemployment?  There have been major IRS changes for that.  If it is unemployment the IRS will automatically adjust your return.  So you do not need to amend.  The state returns might not be ready yet.

If you have unemployment you can exclude up to 10,200 if your income is under $150,000. Your unemployment compensation will be on Schedule 1 line 7. The exclusion will be on Schedule 1 Line 8 as a negative number. The result flows to Form 1040 Line 8.

If you already filed and didn't get the 10,200 unemployment exclusion you do not need to amend.  The IRS will be adjusting it for you.  See,

https://www.irs.gov/newsroom/irs-to-recalculate-taxes-on-unemployment-benefits-refunds-to-start-in-m...

[Critter-3]

Nothing is crazy ... the first and second stimulus payments are being reconciled on the 2020 return and you were supposed to enter all of those payments that you got no matter when you got them. If you got a payment you did not list either before or after the return was filed the IRS is correcting that situation for you and sending the correct refund or sending out a bill for the balance due if removing the credit put you into that situation.  

Everyone needs to slow down and read all of the instructions that are clearly posted ...