Hello, I received in the mail "Notice CP12" Adjusted refund $****.** for tax year 2020 for Form 1040. I filed by mail using Turbo Tax Home & Business CD product. Anyway the IRS letter says the following: "We believe there's a miscalculation on your 2020 Form 1040, which affects the following area of your return: 'Earned Income Tax Credit.' We made changes to your return that correct this error.... We changed the amount claimed as Earned Income Credit (EIC) on your tax return. The amount claimed as EIC was figured or entered incorrectly on your tax return. (285D)." I don't see how as Intuit TurboTax guarantees 100% accuracy. I checked the IRS 2020 EIC table and calculations seem correct, it's lower calculated EIC credit of either AGI (after charitable contributions etc.) or "earned" income. On the "Your tax calculations" section of the letter, my AGI matches what IRS calculated as well as taxable income line as well as tax due for line 24 of 1040. No problems so far. In the Your payments & credits section, my overwithheld income tax matches too. However, for the line "Other credits Form 1040 line 27-30," it just lists $82.00 which is the additional child tax credit calc. which maxes out the $2000 child tax credit already applied by turbotax to my tax owed amount. I just have one daughter so no problems there with Child Tax Credit. However, my calculated EIC of $515 (line 27) is missing/denied on the letter, and yet my AGI qualifies me for the EIC. I don't understand why that is missing/denied. The EIC is a separate issue from Child Tax Credit, unless we're not allowed to have both credits? I'm married filing jointly with my wife. I made more income in 2019 but that didn't help reduce my total refund per TurboTax so I choose to keep 2020 calculation. I got EIC for 2019 and 2018 tax returns and yet nothing else has changed other than our total gross income has gone down for the past two consecutive years. I haven't called the agency yet as I heard it's hard to get a live person. So I may have to mail a response to request a reversal but I don't why or how to support my position/turbotax calculations since I don't know why they are denying the EIC to begin with. Thoughts? Thanks.
