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nevereven
Level 1

IRS says 1040 stimulus miscalculation. How to fix?

Like many others, I got a letter than the IRS found a miscalculation. "We changed the amount claimed as Recovery Rebate Credit on your tax return". I went from a federal refund of $1355 to owing $1145.
In Turbo Tax, it says I received an estimated first round/second round of $3195/$2195 when the actual numbers were 3400/2400, so off by $410.

In TurboTax it just says these (wrong) numbers are what we're eligible for and "The good news is, if you got more money than what we've calculated, you don't have to pay it back, There are no penalties or consequences, you just get to keep it."

 

Well it sounds like there were some other consequences!

If it matters, the IRS's calculations for AGI and Taxable income match my return. My AGI in Turbotax is just over $150k for 2020.

46 Replies
fanfare
Level 15

IRS says 1040 stimulus miscalculation. How to fix?

if your AGI is over $150,000 then your 1040 line 30 must be zero.

This is a common problem for users of TurboTax, finding out that their 1040 was submitted with an incorrect number on line 30.

Greg Nauman
Level 2

IRS says 1040 stimulus miscalculation. How to fix?

I received a Letter saying my 1040 stimulus miscalculation as well. I paid $975 in taxes and they are saying I now owe $2,423. The letter states If you agree with the changes pay it. It offers no way to review what the problem is. I just received the letter today 9/13 and the payment is due 10/4. Is there someone I can talk to about this. If I call the IRS number I get nowhere its just a bunch of recorded menus without the ability to get a hold of anyone.

 

Thanks Greg

VolvoGirl
Level 15

IRS says 1040 stimulus miscalculation. How to fix?

How much is on your 1040 line 30?  Did you receive the full amount for both the first 2 Stimulus payments?  Better check your 1040 line 30 and see if an amount is listed.  That's been a problem.  A common adjustment is if you claimed the Recovery rebate credit on 1040 line 30 when you already got the Stimulus payments or got the second one after you filed.  Or you might have answered the Stimulus questions wrong and tried to claim it again or some more on line 30.  So the IRS took it off because you already got it.  They know they sent it to you.

 

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.

 

How to put a trace on a missing 1st or 2nd Stimulus payment.  IRS for Payment Issued but Lost, Stolen, Destroyed or Not Received

See question F3 here, you can expand it to see how to put a trace on it.

https://www.irs.gov/newsroom/2020-recovery-rebate-credit-topic-f-finding-the-first-and-second-econom...

Greg Nauman
Level 2

IRS says 1040 stimulus miscalculation. How to fix?

I had 2400 listed in the box 30. Which is the amount they are requesting back. 

In the software is this the questions asked?

 

Enter your total first round payment issued april-november 20

 

Enter your total second round payment issued dec 20- feb 21

 

 

Greg Nauman
Level 2

IRS says 1040 stimulus miscalculation. How to fix?

It looks like if you enter the amount of your first and second stimulus payments in answer to these two questions it will calculate box 30 for the total of those two amount and then make you pay taxes on what you received.

 

so my box 30 should be $1800 because I received $1200 and then $600 for a dependent 

 

I am not sure why I had $2400 in that box 30 when I initially did my taxes

 

The payment I received on March 17 2021 should fall to the 21 tax year I think from what I read.

 

 

VolvoGirl
Level 15

IRS says 1040 stimulus miscalculation. How to fix?

Yes, there should be 2 boxes.    Did you already get the full amounts for the 1st and 2nd rounds?   Are you Single or Married?  Any Dependents under 17?   2,400 could be the first one for Married Joint.  You might have entered the wrong amounts received in the wrong box.

The 1st Stimulus payment was 1200 (2400 joint) and 500 for each dependent under 17.

 

The 2nd round was 600 per person.   

Greg Nauman
Level 2

IRS says 1040 stimulus miscalculation. How to fix?

Yes but for some reason I only received $1200 and $600 even though married filing jointly. I logged into both my wife's and my accounts on the IRS website and both logins say the same information. 

 

Looks like I am going to have to contact the IRS because I paid $900 or so and I should have paid $1500 based on that information.

 

For some reason I had 2400 in that box and it said I owed 2400 back on the C11 letter.

 

In reality I should owe the difference between the $900 and the $1500

 

So I guess I need to make an appointment and talk to the local IRS people. I couldn't get anyone on the phone at the number provided.

VolvoGirl
Level 15

IRS says 1040 stimulus miscalculation. How to fix?

We were typing at the same time.   No the Stimulus payments are not taxable.  Line 30 is only if you qualify for MORE.   Not what you already got.  

How did you file?  Single with one dependent?  Then you should have received $2,900.   

#1 $1,200+500

#2   $600+600

 

Were you missing some?

Greg Nauman
Level 2

IRS says 1040 stimulus miscalculation. How to fix?

I filed jointly and my wife and I have one dependent.

 

But if I look at what was actually paid to me via the IRS website it was $1200 and then $600

 

My March 2021 Stimulus was higher than what should have been so maybe they added more on to it?

 

 

This is such a mess

Greg Nauman
Level 2

IRS says 1040 stimulus miscalculation. How to fix?

Well when you answer the two questions I posted above it totals the amounts you entered and puts the total on line 30.

 

And then the amount I owe goes up from the $900 to $1500

Critter-3
Level 15

IRS says 1040 stimulus miscalculation. How to fix?

If you filed a joint return and then look at the taxpayer and spouses separate accounts online at the IRS you will find the total stimulus split into two parts one for him and one for her. On the tax return when you file a joint return you had to enter the total amount you both received. If you had a qualifying dependent on the return and the stimulus for that person will also be split. So for a Married couple with one qualifying dependent under the age of 17 they would have gotten $1200 per person +500 for the child for the first stimulus for a total of $2900. On the IRS account the taxpayer and the spouse would have shown 1200 for each of them plus $250 each for 1/2 of the child. The same goes for the second stimulus of $600 per person on the return so in the online account the taxpayer and the spouse would each say $600 for themselves +300 for the child for a total of $900 per person or $1800 combined.

Greg Nauman
Level 2

IRS says 1040 stimulus miscalculation. How to fix?

That is not how it shows, i.e. split in half. I printed out both and they both say the $1200 and the $600 

 

Guess Ill head to a meeting with the IRS

 

Also like i said above if I enter the $1200 and the $600 in answer to the two questions it puts $1800 in line 30

 

anyway someone can explain this from Turbo tax perspective? Doesn't make sense.

 

And when line 30 shows $1800 its makes what I owe to the IRS increase from $900 to $1500

Greg Nauman
Level 2

IRS says 1040 stimulus miscalculation. How to fix?

I searched my checking account records and I only received a deposit for $1200. My dependent for some reason received $1400. She is not under 17 but is a dependent as she is permanently disabled. CP

 

Then I received a check in March of this year for another amount. which would be stimulus check 3 and should be for 2021 taxes.

 

This is a freaking mess. **bleep** government.

DoninGA
Level 15

IRS says 1040 stimulus miscalculation. How to fix?

Check your tax account on the IRS website - https://www.irs.gov/payments/view-your-tax-account

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