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Level 2
February 27, 2022
Question

IRS changes

  • February 27, 2022
  • 3 replies
  • 12 views

I checked my return status today, my refund was changed (lowered) for the following:

1.  We changed the refundable Child Tax Credit amount claimed on your tax return because there was an error on Schedule 8812, Credits for Qualifying Children and Other Dependents, in one of the following:

  • The computation of the credit on Schedule 8812 was incorrect.
  • The amount on Schedule 8812 was not transferred correctly to your tax return.
  • You received advance Child Tax Credit payments but did not reconcile them or you reconciled them incorrectly

2.We changed the amount claimed as Recovery Rebate Credit on your tax return. The error was in one or more of the following:

  • The Social Security number of one or more individuals claimed as a qualifying dependent was missing or incomplete.
  • The last name of one or more individuals claimed as a qualifying dependent does not match our records.
  • One or more individuals claimed as a qualifying dependent exceeds the age limit.
  • Your adjusted gross income exceeds $75,000 ($150,000 if married filing jointly, $112,500 if head of household).
  • The amount was computed incorrectly.

The child tax credit was entered off the IRS website, I have 3 eligible dependents (16, 10, 8).  I double checked all names and SSN, all are correct.  I only received payments of $500 July-Dec 2021.  Any insight I'm missing?

    3 replies

    Level 15
    February 27, 2022

    The information the IRS has provided is not specific, so it's impossible to determine why they reduced your refund based on that.  Once they have processed your refund you can expect to receive a letter explaining their change. 

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    VolvoGirl
    Level 15
    February 27, 2022

    #1  for the Child Tax Credit.  How much Advance did you get?  Did you enter it when you filled out  your tax return?   How much is line 28 on your tax return?  The total credit should be 9,000 for 3 children.  Minus the Advance should give  you the remaining amount on line 28.   

     

    #2 Recovery Rebate Credit  Did you get the 3rd Stimulus payment?  It was $1,400 per person and started coming out in March 2021.  If you didn't get the full amount or qualify for more it will be on 1040 line 30.  If you claimed a missing stimulus payment on your return but the IRS took it off you have to ask the IRS. They think they already sent it to you. Maybe it went to an account you don't remember. Or you got a check or a card. It was probably easy to miss the debit card in the mail and think it was junk mail. They have to put a trace on it.  

     

     

    Level 10
    February 28, 2022

    You should have received Letter 6419 which gave you the amount of your Advanced Child Tax Credit and for how many children you received the credit for.

     

    You should have also received Letter 6475 for the amount of Recovery Rebate that you received.   

     

    These letters should have been used when entering the information into TurboTax.   based on the status you received from the IRS, the information you entered did not equal with the IRS records.   

     

    My recommendation is to look to see if you can find the two letters mentioned above and double-check to make sure that these letters are what you entered and agree with the adjustments made by the IRS.

     

    Double-check everything in your return and make sure it adds up to the correct amounts.   Does the Advanced Child Tax Credit and the amount on Line 28 of your 1040 equal the $9,000 then how does that compare to what the IRS is saying.   

     

    Do the same with the Recovery Rebate.    You may have to wait to see what the amount of your refund is before you can do this.    If you disagree and can find the letters or proof that you did not receive what the IRS says you did receive then you could amend and provide your proof to the IRS when you file your amendment.   It all comes down to what can you prove.

     

     

     

    JVans82Author
    Level 2
    February 28, 2022

    My 6419 shows 1500.00 and 2 dependents, all of my payments have been wrong, since the relief payments were sent, and I received a corrective payment when I filed my 2020 taxes.  I do not understand why it is still saying I only have 2 when I have had three since these economic relief payments started in 2020.  Line 28 is only 7500.

     

    I didn't receive a 6475, so I used the info that was on the IRS website.   

    Level 2
    April 28, 2022

    Did you ever get this resolved? We had the exact same thing happen, found out last night. We had a new baby in September of 2021 and didn’t get any of the child tax credit payments for him from September-December. Our errors came back the same as yours. We also never received the letters someone in this thread mentioned we’d need. It’s so frustrating. 

    Level 15
    April 28, 2022

    @Brvanden "Advance "   CTC payments were not sent for children born in 2021.  But you can get the full amount of the 2021 CTC on your 2021 tax return.

     

     

    Make sure you have entered your child as a dependent in My Info, and that you have entered the child's Social Security number.    Careful— do not say that your child’s SSN is not valid for employment.  If your child was born in 2021make sure you said he lived with you the whole year.  There is an oddly worded question that asks if the child paid over half their own support.  Say NO to that question.

     

    If you had no other children claimed on a 2020 return then you would not have received letter 6419.  That letter only went to parents or people who actually received advance CTC payments.

     

    Make sure you claimed your baby and that the child is shown as a dependent on your Form 1040.   You should see the full $3600 CTC on line 28 of your Form 1040 and then 3rd EIP on line 30.

     

     

    PREVIEW 1040

     

    https://ttlc.intuit.com/questions/1901539-how-do-i-preview-my-turbotax-online-return-before-filing

    Click on Tax Tools on the left side of the screen. Click on Tools. Click on View Tax Summary. Click on Preview my 1040 on the left side of the screen.

     

     

    NOTE:   The CTC is indeed a “credit” that can be applied toward any tax liability that you would otherwise have to pay as “tax due”  to the IRS.

     

     

    **Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
    Level 2
    April 28, 2022

    We did have a child in 2020, she was born in 2019. So we did have those payments coming through for her. I’m just confused as to the errors given, as we did file the baby correctly from what I remember. We put he lived with us the whole year, and answered no to the question about support. It sounds like a LOT of people are getting these errors this year, with only half of their expected refund. It’s super frustrating especially if we can’t get a hold of the IRS to ask about it.