ERROR in Turbo Tax Calculations for Federal Economic Stimulus Payment Due To TT FORM "Recovery Rebate Credit Worksheet".

[johnmatthews2701]

I just received a notice from the IRS regarding the Recovery Rebate Credit.  IRS notice says "We found an error on your 2021 Form 1040SR, which affects the following area of your return: Recovery Rebate Credit. We changed your return to correct this error  As a result, you owe $6377.90.

I think that Turbo Tax's 100% accurate calculations Guarantee is applicable in this instance.

[VolvoGirl]

Turbo Tax is a self prepared return.  It has no way of knowing or checking that you entered something wrong or in the wrong place or entered something twice  Or left something out.  It doesn't check against any outside sources.  The IRS has copies of all the W2s and 1099s your employer and banks/brokers, etc. sent in to match against.  Turbo Tax only checks the calculations of what you entered.   It is your responsibility to check it over before you file.  They only Guarantee that the calculations are right based on the entries you made.

https://ttlc.intuit.com/community/charges-and-fees/help/what-is-the-turbotax-100-accurate-calculatio...

The Recovery Rebate Credit on Line 30 is only if you didn't get the full amount or qualify for more.   The IRS records show they already sent it to you last year starting in March 2021.   Double check your bank statements and Check your IRS account (both accounts if married)

Your Online Account | Internal Revenue Service

You tried to claim it again.  If you didn't get the 3rd Stimulus payment you need to have the IRS put a trace on it.  

[NCperson]

@johnmatthews2701 while I understand your frustration, be aware of how the TT guarentee works. 

Yes, they do guarentee the accurary of the tax return if the error is caused by their software's calcuations; however, they do not guarentee the accuracy of the tax return if the error is caused by data entry.  In faireness, if you don't enter a number accurately, the software calculations will output an incorrect answer and TT doesn't take responsibility for that. 

There was a question as part of the Recovery Credit asking how much you received for the Stimulus.  If you entered a number that did not match the IRS records (as they are the ones that sent you the stimulus so they know what they sent), then the IRS adjusted your return by the difference and that difference reduces Line 30, which in turn reduces the refund / increases what you owe. 

The calculation on Line 30 is rather simple:  $1400 times the number of people listed on your tax return LESS the amount you received last March - May, 2021, but not less than zero. 

What is on Line 30 of your tax return as submitted? 

What did you enter as the amount you received in stimuls last year?

How much did you receive for the 3rd stimulus last spring? (please look at your bank account statements from March - May, 2021, please don't go on memory to answer this)

someone in there we are going to determine the math behind the IRS's adjustment

does that help?

[fanfare]

"the reason it is so hard to collect on the guarentee is the quality of the software itself (the calculations)"

@NCperson 

That's good. I'm laughing. LOL

Have you ever read the fine print for filing an accuracy claim ?

[NCperson]

Yes, I've read the fine print....... 

if it is determined that the calculations are indeed the root cause, they are not liable for the corrected tax, just the penalties and interest that the bad calculations caused.  

they are not going to cover where an errant input was used by the correct calcuations, creating a bad outcome.

[Barbara Fear]

IRS is not giving me credit for my Stimulus Check of $1,400.   I am eligible for this amount and Turbo Tax prepared my return correctly.  IRS is denying the Stimuls amut

Pleas edvise

[NCperson]

@Barbara Fear - just to be sure we are all on the same page, you are eligible for either the 3rd stimulus of the Recovery Rebate Credit, but not both.  If you don't believe you received the stimulus, then the Recovery Rebate is on Line 30 of Form 1040. 

suggest the following

1) look at your transcript at IRS.gov and review the date the IRS says they sent out the stimulus (should be between March and May, 2021)

2) check your banking account records and see if that stimulus was deposited shortly after the date listed on the transcript.

if you don't find evidence of the stimulus deposit, then we have a 'stalement' (you say your didn't receive it but the IRS statesthey indeed sent it)

then, your only recourse if to fill out and submit Form 3911 which is a tracer form.

https://www.irs.gov/pub/irs-pdf/f3911.

does that help?

[Barbara Fear]

Turbo Tax gave me $1,400.  crecit for the stimulas check of 2021.  IRS is denying this credit.  What should I do ?

[VolvoGirl]

@Barbara Fear  The IRS records show they already sent it to you.  Didn't you get it last year starting in March 2021?  You tried to get it again.  Check the things listed in the post above.

Double check your bank statements and Check your IRS account (both accounts if married)

Your Online Account | Internal Revenue Service

If the IRS thinks they sent it to you but you didn't get it request a trace for a missing third Stimulus payment

https://www.irs.gov/newsroom/questions-and-answers-about-the-third-economic-impact-payment-topic-j-p...

[NCperson]

i answered this just above....or are you now asking a different question?

[Mike9241]

the stimulus (#3) and the recovery rebate are one and the same.

[NORMB01]

I too received a CP11 requesting that I pay $730.

[NCperson]

@NORMB01 - what is on Lines 28 and 30 of your Form 1040? 

Was the difference between the refund you were expecting and the amount you now owe $1400? if so, I can explain .

[NORMB01]

line 28 was blank (additional child tax credit) and line 30 (Recovery rebate credit) was $695 on my 1040-SR.  How can this be fixed if an error?

[NORMB01]

My balance due (with penalty and/interest) for 2020 federal was $3055 that was paid before May 17, 2021.