More Fed tax owed...

[alonkut]

So my Federal return was accepted and processed in January. Last week I got a letter from the IRS saying that I had omitted reporting some federal stimulus $, but I had entered all the information correctly. Did Turbotax change an algorithm - or - did the Fed's change their stimulus payment tax status? It's almost a $1400 increase! Wouldn't the Turbotax software catch this?

Any suggestions or insight would be greatly appreciated!

[DoninGA]

If your refund is short $1,400 then that is because you said you did not receive the 3rd stimulus payment and the IRS has records that show you were sent the 3rd stimulus payment so they removed the $1,400 Recovery Rebate Credit that was entered on Form 1040 Line 30.

Go to this IRS website for your tax account to see if the 3rd stimulus payment is entered - https://www.irs.gov/payments/your-online-account

If you checked your bank account in the March - May 2021 timeframe and there is not a $1,400 EIP3 payment from the IRS then go to this IRS website for how to start a trace on the payment - https://www.irs.gov/newsroom/questions-and-answers-about-the-third-economic-impact-payment-topic-j-p...

[alonkut]

Hmm. I'm still confused...

The notice states that the computation of my 8812 was not complete or transferred to my return incorrectly.

I went in and can see that the info entered correctly matches my form 6419...? 

IRS says I did receive the 3rd. 

My Line 28 is correct and reflects my 6419 notice plus the 3rd stimulus payment.

I did not enter any amount on Line 30 - as they said it would be if I were claiming a rebate.

What am I missing here?

Suggestions? 

Thanks in advance!!

[Affordabletaxes2021]

Form 8812 and 6419 are related to child tax credit not a stimulus payment. Check your entries for advanced child tax credit payments you received in 2021. Did you receive a $1400 stimulus check in 2021?

[xmasbaby0]

@alonkut Sounds like you got confused and mixed up the letters you received.   Letter 6419 was for advance child tax credit payments that you received between July and December---the payments of $250 or $300 per month per child that was paid in advance.   You had to enter that and then you could get the other remaining part of the child tax credit as part of your refund.   It would have been on line 28 of your tax return.

Letter 6475 shows the amount of the 3rd EIP---"stimulus" check of $1400 per person that was sent to you sometime after mid-March.   You had to enter that correctly for the recovery rebate credit in Federal Review.   If you said you did not receive the stimulus check then it put an amount on line 30 of your tax form.   If you really did receive that money, the IRS knows you got it.   They remove it from your refund---which would explain your $1400 shortage. 

 The stimulus check had nothing to do with the child tax credit, nor does it have anything to do with Form 8812.

If you are not sure what you received last year, check your own bank account for deposits of $1400 per person and for deposits of $250 or $300 per month for your children.   And check your IRS online account.

https://www.irs.gov/payments/your-online-account

[alonkut]

Ok - figured it out!

When it asked for a total for pandemic relief I added child credit into that amount- which made sense to me because both amounts were provided because of the pandemic- just titled differently.

Honestly, it seems that any amount of $2800 should have been caught within the Turbotax system, but no.

So glad I figured it out - and also very appreciative for the help and advice setting me straight.

Cheers!