IRS Notification of error related to Refundable Child Tax Credit, it's about SCHEDULE 8812 sheet 5

[puckhog]

This was my response to the above:

I went through the ordeal of getting an IRS account, painful, to find out that the IRS had been putting the tax credit directly in my bank account. I then went to my bank account and verified that 6 checks of $333 had been deposited. I did not receive any notification of their deposits or any form at tax time. You should not need to get the IRS account, just check your bank account for IRS deposits last year

[mrip325]

I just received the same notice from the IRS.  Is Turbo Tax wrong?  If so, why am I paying to use this product?  I not only paid to file but paid for audit protection.  Very disappointed.

[mrip325]

I just received the same notice from the IRS.  Is Turbo Tax wrong?  If so, why am I paying to use this product?  I not only paid to file but paid for audit protection.  Very disappointed.

[Mike9241]

audit protection does not stop the IRS from changing your return. its records or computations indicate that the return has incorrect information 

if the IRS changed the RCTC it's because their records indicate you got more than what you reported. the IRS could be wrong. in that case, use the Audit protection

The Audit Defense service is provided by TaxResources, Inc., also called TaxAudit.com, in partnership with TurboTax. If you paid for Audit Defense and you received an IRS notice, call TaxResources, Inc. at 877-829-9695, or report your IRS notice on their website at http://intuit.taxaudit.com/. Do not contact the IRS until you have spoken to TaxResources. They may contact the IRS on your behalf.

[puckhog]

No, at least not in my case.  The IRS failed to tell me that they deposited 50% of the tax credit directly into my bank account.  There is a line in Turbo tax that asks for this info, but at the time I did not have it.

[dhuizer]

Hi,

I received the same notice. So, the IRS was sending a monthly amount directly in your bank account. I never received a statement from IRS. My deposits started in July and ended in December.

If for example Turbo tax stated that the IRS owes you $10,000, however you only received $7,000, that means that the IRS did deposit $500.00 in your bank account. ($500 x 6 months = $3,000). I had to check my bank statements. Search for IRS deposit from January 2021 - December 2021 add the total deposit and subtract that amount from the amount in Turbo tax.  Turbo tax will obviously have the wrong numbers on form 8812/1040. Hope this information helps.

[jvpski12]

I just got a notice as well.  Is there anyway to check with the IRS to get this validated as to why it happens?  It seems they are saying it was not transferred correctly from 1 form to another.    thx

[NCperson]

@jvpski12 

during the interview process, TT asked you to enter the amount you received for the Advance Child Tax Credit

if what you entered did not match the IRS records (the IRS is who sent the Advance to you, so they have the records of what was sent). the IRS adjusted Line 28 by the difference, which reduces your refund / increases what you owe

Suggest checking your bank account records from Jul- Dec, 2021 to confirm what you received (would have been around the 15th each month)

Then look on Line 28 of your tax return.  Line 28 is  the number of children under 6 years old times $3600 PLUS number of children 6-17 years old times $3000 LESS what you received from July- Dec, 2021.

What do you have on Line 28 of your tax return compared to the math in my paragraph above? do they match? if not THAT is why the IRS adjusted your return.

[BeaverDamn]

@jvpski12 Then look on Line 28 of your tax return.  Line 28 is  the number of children under 6 years old times $3600 PLUS number of children 6-17 years old times $3000 LESS what you received from July- Dec, 2021.

So if I have a 3 and 5 year old and 12 year old and received $3000 from July-Dec 2021. Somehow I put down $2500 for my Line 28 item. Is this the correct math?

I also got a letter stating I owe $1500 to the IRS.

Thank you!

[VolvoGirl]

Did you get IRS letter 6419 saying how much advance they sent you?  You should each get a letter for half.  

You qualify for 3600+3600+3000=10,200.  Then minus the $3,000 you got gives 7,200 for line 28.  Don't know how you only got 2500 on line 28.   Then it doesn't make sense you owe 1500.   Double check your bank account.  The IRS shows they sent you more.

[NCperson]

@BeaverDamn - as noted, please check your bank account for each month of July - Dec, 2021 - right around the 15th of the month.

By any chance is your income over $150,000 (Line 11)? that would affect the math as well.  For simplicity, I haven't mentioned that in any of my posts as it doesn't affect too many people and makes the explanation more complicated. 

[BeaverDamn]

@NCperson 

Income is >150k

[NCperson]

@BeaverDamn - then you were subject to the more complicated math as the benefit is reduced for those making over $150,000.  Look at Form 8812, That is the math that explains the reduced benefit due to your income. 

Line 14f is what you entered into TT as what you received last year.  But I suspect if you review your bank account records for the 6 months from July - Dec, 2021 (right around the 15th each month), you'll sum to a different amount.  The IRS would have adjusted Line 14f to match their records.  Note the cautionary statement below Line 14f. 

does that help? 

@VolvoGirl 

@VolvoGirl 

[Theunknownknight]

I’m having the same issue. Nothing changed with my payments from year to year - my submission was verified by TurboTax - now the IRS is saying I OWE 2500 dollars and it’s due in two days. I’m confused. How does this happen?

[NCperson]

@Theunknownknight - need more details

1) what is the EXACT amount of the adjustment

2) what is on Line 28 of your tax return? 

the way Line 28 works is rather simple:

1) $3600 times the number of children under the age of 6 PLUS

2) $3000 times the number of children 6-17 years old LESS

3) what you received each month from July-Dec, 2021 (CHECK YOUR BANK STATEMENTS)

if the IRS adjusted your refund, it is highly likely due to the amount you entered into TT for #3 does not match what the IRS records indicate they sent you.  Hence, CHECK YOUR BANK STATEMENTS again! please do NOT go from memory!)

does that help