I HAVE USED TURBO TAX FOR YEARS . THIS IS THE FIRST TIME I RECEIVED A LETTER FROM THE IRS SAYING THE LAW WAS CHANGED AND I OWE $3164.00

[kellyca16]

MY SISTER IS DISABLED AND LIVES WITH US . SHE  IS ADDED AS A DEPENDENT BECAUSE I SUPPORT HER FINANCIAL. WAS THE LAW CHANGED FOR THIS ?

[Critter-3]

What did they change/deny on the return ?   Did they remove the dependent completely ?  Disallow just the EIC ?  Does she have an ITIN or SS# ?   Does she have income of $4300 or more ( SSA or SSDI not counted) ? 

[NCperson]

@kellyca16 - most who post and say the IRS reduced their refund has to do with the stimulus / Recovery Rebate Credit (line 30) or the CHild Tax Credit (line 28)

if you answer these questions I can probably figure out what happened:

1) what is the EXACT amount of the IRS adjustment?

2) what is on Line 30 of Form 1040?

3) what is on Line 28 of Form 1040?

there were no changes related to who is a dependent.  if your sister lived with you for more than 6 months, earned less than $4300 (exclude social security) and she provided less than 50% of her own support, she is your dependent - that is the way it has been for quite awhile

[Mike9241]

this is a guess because I can't see the notice.   the IRS probably denied the dependency exemption for your sister because she is too old  - likely over 24.    however, the IRS is wrong. Age is irrelevant if she is totally and permanently disabled.  however, the IRS in its lack of wisdom provides no place on your tax return to indicate this. 

what you need to do is get a signed and dated letter from her doctor stating that she is totally and permanently disabled.  then you send back the notice with your signed and dated letter saying that your sister SSN xxx-xx-xxxx is your qualifying child because she is:  1) RELATED. 2) HER AGE DOES NOT MATTER BECAUSE SHE IS TOTALLY AND PERMANENTLY DISABLED PER THE DOCTOR'S LETTER INCLUDED (IRC 152(c)(3)(B)  3) SHE LIVED WITH US FOR MORE THAN 1/2 THE YEAR 4) WE PROVIDE OVER 1/2 HER SUPPORT 5) SHE DOES NOT FILE A JOINT RETURN

PLEASE ADJUST YOUR RECORDS ACCORDINGLY PER OUR RETURN AS ORIGINALLY FILED.

if she is not over 24, then you can use the Turbotax tax notice section to review the letter to determine the reason for the adjustment

https://support.turbotax.intuit.com/irs-notice/audit-support/