bill from IRS

[djs1510]

I just received a bill from the IRS for my wife's return (we filed status of Married - filing separately) stating she owes nearly $10K.  I used TurboTax.  Submitted everything.  Ran the error checker multiple times to validate everything is correct.  How is this possible?

[NCperson]

what did the letter say is the reason for the adjsutments? 

it is possible if you claimed stimulus payments (Line 30) and you already received those payments last year.  that is just one example of how it could be possible 

[Mike9241]

Turbotax checks the calculations but has no way to verify what is entered vs what the IRS records show.   did you both use either the standard deduction or itemized? you both must use the same method.

[NCperson]

also, can I ask you you filed MFS? That normally leads to owing a lot more tax than filing MFJ.  96% of married couples file MFJ - because the tax laws motivate that behavior.

[djs1510]

it says --

We fond an error on your 2021 Form 1040, which affects the following area of your return:  Additional Tax

We changed your return to correct this error.  As a result, you owe $9,828.07

* We changed the amount shown on Schedule 2 of your tax return as an additional tax from Schedule 8812, Credits for Qualifying Children and Other Dependents, because you received advance Child Tax Credit payments and either didn't reconcile them or made an error on Schedule 8812 in one of the following:

- The computation of the Child Tax Credit on Schedule 8812

- The reconciliation of advance Child Tax Credit payments.

- Transferring the amount of tax from Part III to your tax return.

I'm so confused about this because TurboTax did all these calcuations.

[djs1510]

We both did MFS.

it says --

We fond an error on your 2021 Form 1040, which affects the following area of your return:  Additional Tax

We changed your return to correct this error.  As a result, you owe $9,828.07

* We changed the amount shown on Schedule 2 of your tax return as an additional tax from Schedule 8812, Credits for Qualifying Children and Other Depents, because you received advance Child Tax Credit payments and either didn't reconcile them or made an error on Schedule 8812 in one of the following:

- The computation of the Child Tax Credit on Schedule 8812

- The reconciliation of advance Child Tax Credit payments.

- Transferring the amount of tax from Part III to your tax return.

I'm so confused because TurboTax did the calculations.

[NCperson]

@djs1510 - I think we can figure this out. Please answer these questions and I will circle back to you

Since your filed MFS, please respond for each tax return separately: 

1) what is on Line 28 of Form 1040?

2) what are the ages of the children listed on EACH return (use their ages as of 12/31/21 please)

3) on Form 8812, what is on Line 14f?

4) if you received Letter 6419, how much does it state your received for the Advance (there would be two letters, one for each parent)

5) please review your bank statements from July - Dec, 2021 and provide that the amount the IRS deposited (around the 15th of the month) for the 6 months in total.

6) how much did the IRS change your tax return by, in otherwords, if you now owe $9828, what did TT calculate that you owed (or refund due) when you submitted the return.  

You are correct that TT did all the calculations, but the problem I see over and over again is that my requests 3) and 5) above do not match - THAT is why the IRS is adjusting tax returns.   TT was dependent on your entry matching the IRS records. 

please post back the asnwers to my questions and I will be able to explain what happened

[djs1510]

1) line 28-  -hers = $0; -mine = $0

2) ages of children -- hers - 17 (our daughter);  - mine - 19 (our son)

3) form 8812 - line 14f -- hers = $0;  -mine = $0

4) letter 6419 - neither of us received

5) $666 (under her name); none under my name. we filed MFS last year as well

6) the IRS calculated she owed $57,492 (1040 line 24).  they said 1040 line 24 on the submission was incorrect at $56,492 (line 24).  TT said she had paid $47,721 and owed $8,771.  We paid the IRS $8,771 on April 18th.  So we have paid $56,492.

[NCperson]

@djs1510 here is the problem 

on the one hand her tax return stated there were no advance payments (line 14f) but on the other hand you are saying that she received $666 in her bank accounts.  So when TT asked how much was received, $-0- was entered when $666 was more accurate (that is an odd number - was that $166 per month for 6 months or $1,000??? please recheck) 

this should only effect your wife's return because that is where the 17 year old was claimed.  The 19 year old is not eligible for the CTC in any event. 

Further, based on her income (appears to be greater than $80,000), she has to pay the advance back - THAT is the tax that the IRS is adjusting when they reference Schedule 2.  Is that $1000 (which is why I wonder if the $666 is all 6 months).  Had the correct number been entered on Line 14f, then TT would have calculated all this correctly. 

does that make sense? 

[djs1510]

OK, thanks so much.  This makes sense.  I think she also got 2 actual checks in the mail.  Some were $166 & some were $167.

So how do I get the IRS to acknowledge the payment we made back on filing day and correct this bill?

[NCperson]

@djs1510 -

suggest going to IRS.gov and getting on YOUR WIFE's transcript (use her SS#) you'll see the acknowlegement of receipt of the April payment as only the $1,000 should show as outstanding (plus interest) 

then simply send in a payment for what is outstanding or pay it online. 

https://directpay.irs.gov/directpay/payment?execution=e1s1

[djs1510]

Wow, as soon as I got everything registered at the IRS site, the balance was just like you said!

Made the payment.

Thank you so very much for your help!!!