Used turbotax and paid state and federal. Now i am getting a letter from the irs that i owe more.
Does turbotax provide help and clarification on why i am now being told to pay more???
Is for the full amount you paid? When did you pay it? If it was after July 15 it might be for interest. Or if you owed too much it might be a penalty for not paying in enough during the year.
How did you pay it? Did you send in a check? Did you use the 1040V voucher? If you used a 1040ES slip that was to make an estimated prepayment for NEXT year 2020 return.
Your only proof of payment is your bank or credit card statement showing it coming out. Turbo Tax does not pay it. They only send your bank info to the IRS or state and then the state pulls it out of your account.
Or the IRS changed something on your return or added some income. The letter should say what they changed.
It is for the full amount owed + interest, it does not show any payments received (+7500$). but the amount owed is greatly different from what turbotax says i owed and paid.
I paid through efile directly with my bank account and the funds were released.
My question is why did this happen if I paid for the evaluation, and turbo tax agreed, then the IRS is coming after me for more money??? This does not make sense to me and i appreciate your time and help
You should send the IRS a copy of your check or bank statement showing it being paid. Maybe they applied it to the wrong account or year. If they are charging you more you need to ask the IRS why.
I will do this, but the question still remains of;
Why is the amount owed GREATLY different from what turbo tax says i owed (and paid)
Some things to check. Did you get any 1099R or SS?
I would check over your return and see if you can see anything wrong especially in the payments section. Make sure you agree with all the amounts listed. Like is the difference the same or close to the refund you got last year? Maybe you put down that you applied last year's refund to this year? Or you put down you made a payment with an extension or paid an estimated payment that you didn't make?
A common error is showing an estimated payment on 1040 schedule 3 line 8 you didn't make or payment with an extension you didn't send in. Sometimes people start an extension form on purpose or accidentally and an amount gets entered for a tax due to send in with the extension.
Or you claimed Excess Social Security paid on Schedule 3 line 11. That happens when you are married and enter both spouse's W2s under the same name.
Or if you got any 1099Misc forms you didn't report it as self employment income on Schedule C and pay the SE tax on it. It might have showed up on 1040 Schedule 1 line 8 for Other Income instead of line 3 business income.
Or the IRS changed your income. A common thing they change is the taxable amount of any 1099R for pension, 401K or IRA distributions or conversions on 1040. And if you get Social Security and they increase some other income it will make more of your SS taxable.
The IRS letter should tell you what they changed.
TurboTax does not receive any information from the IRS or your state after your return was filed, so no one at TurboTax knows about a letter you received from the IRS or the state.
(what the letters from the IRS mean)
I GOT A LETTER FROM THE IRS
https://ttlc.intuit.com/questions/3605673-i-got-a-letter-or-notice-from-the-irs
I AM BEING AUDITED
If you purchased Audit Defense:
https://ttlc.intuit.com/questions/2924451-i-bought-max-or-audit-defense-and-now-i-m-being-audited
AUDIT SUPPORT
TurboTax has a special phone number for help with IRS/state tax letters, which will be easier than going through regular Customer Support. At the page below, click on the blue button that says "Get Help from TurboTax Support". Then it will ask you what tax year is your letter. Then it will ask you what the letter concerns. Then it will show you the phone number during posted business hours.
https://support.turbotax.intuit.com/irs-notice/audit-support/
I was a 1099-MISC independent contractor and do not receive any for of SS. So all of my income is usually listed as such.
I do not know my way around a tax return to look for the items you describe and this is why i pay turbo tax todo their service i thought...
Its sounding like i have to wait till monday to talk with them and get to the bottom of this.
Also the notice is a CP504, and it is not commonly listed on the links you suggested.
Please refrain from posting generic helpbot answers to my situation, as it will only mislead and not provide any clarity.
This is the fourth notice you received from the IRS, why did you not respond to the other notices.
According the IRS you will receive 5 notices -
We cannot see your tax return or access your account, so we have no way to check over your return for you. We cannot look and know if you entered some income incorrectly or did not enter all of your income. We only know what you tell us--which was that you got a "letter." If you do not understand the letter then wait for normal business hours next week and get someone to help you. Print a copy of your tax return out so that you can have it in front of you when you talk to someone. And make sure you have copies of your proof of the tax you paid--cancelled checks, your bank or credit card statement, etc. The IRS does make mistakes--maybe you will just have to provide proof that you paid.
https://www.irs.gov/individuals/understanding-your-cp504-notice
easy answer, because i did not receive any other notices
Sorry, We can only post general answers since we didn't know what letter you got. We have to ask you more questions. Sounds like the IRS is just charging you more since they didn't apply your payment. Here is IRS 504 letter
https://www.irs.gov/individuals/understanding-your-cp504-notice
I received a Notice CP2000 stating I owe a LOT more on my 2019 taxes. I have no ideas where they're getting their figures on 'alleged' additional income. I get nothing but message options when I call the supplied number.
@mkiuhn Your notice should have a schedule that shows in the left column what you reported and in the next column what the IRS shows and then the difference in the third column. You need to examine that schedule to determine what the IRS is showing that doesn't agree with what is reported on your tax return.
I recently received a notice stating that I owed a penalty and interest for unpaid 2019 taxes. I suspect that I am not the only one and this is what I think of a the Law of Unintended Consequences. Typically, a guesstimate my taxes and file by April 15. For 2019, I finished and sent a check for the entire amount due before the July 15, 2020 extended deadline. Bear in mind that if I had filed for extension on April 15, 2020 and paid by check that I would have had till October 15, 2020 for the IRS to have processed my payment. But because the filing date was extended to July 15, 2020 the payment by check was NOT considered a payment made by July 15, 2020 so a penalty and interest was added. So if you get a similar notice it could be because you did not pay all of the taxes due by July 15, 2020. Moral of the story, pay online.
How did you get a notice? Did the IRS send you a letter? Or from Turbo Tax when filing your 2020 return? If it is in Turbo Tax then it is not about paying 2019 tax due late.
If the IRS is billing you then you can ask them to waive it.
I have appealed 3 times with the IRS and now am getting large amounts of interest attached to my account.
The IRS is considering my Long Term Insurance payout as an income even though I paid for the insurance
when I was working and had it taken out of my salary so taxes were taken out at that time. The amount
the IRS is asking for interest is more than the insurance paid me. According to the IRS wedsite
payments you received for a disability insurance policy that you paid the premiums for are not earned
income. What do I do now? My husband and I retired senior citizens and paying out more than
$10,000. 00 is a hardship. Thank you for your HELP.
I RECEIVED A LETTER FROM THE IRS/STATE
TurboTax does not receive any information from the IRS or your state after your return was filed, so no one at TurboTax knows about a letter you received from the IRS or the state.
(what the letters from the IRS mean)
I GOT A LETTER FROM THE IRS
https://ttlc.intuit.com/questions/3605673-i-got-a-letter-or-notice-from-the-irs
I AM BEING AUDITED
If you purchased Audit Defense:
https://ttlc.intuit.com/questions/2924451-i-bought-max-or-audit-defense-and-now-i-m-being-audited
AUDIT SUPPORT
TurboTax has a special phone number for help with IRS/state tax letters, which will be easier than going through regular Customer Support. At the page below, click on the blue button that says "Get Help from TurboTax Support". Then it will ask you what tax year is your letter. Then it will ask you what the letter concerns. Then it will show you the phone number during posted business hours.
https://support.turbotax.intuit.com/irs-notice/audit-support/
@bob1613 Hopefully you get some help or clarification from audit support. But meanwhile.....would mind telling us specifically what tax document you received from the long term disability insurance ----and where you entered it on your tax return? I am wondering if the problem is that you entered it in the wrong place.
On the W-2 form in box #1 wages, tips, other compensation $25,000.00 was entered. In box #13 third
party sick pay a check X was entered. The $25, 000,00 was the amount the disability insurance company agreed to a pay off after I contacted a lawyer to take over my case. I was given $16, 400,00 and the
lawyer took $8,040.00 for his fee.