IRS Notification of error related to Refundable Child Tax Credit

[eaglerider52]

Today I received notification from the IRS that there was an error in the calculation of Refundable Child Tax Credits indicating that the calculation in associated Worksheet 5 was incorrect and applied incorrectly to the tax return.  Instead of the $2000 amount TurboTax calculated, it appears that appropriate calculations on Worksheet 5 should have been $1000.  As a result of this apparent error, we now owe $6314.00 in Federal taxes as opposed to the original (and filed) amount of $5314.00.

Thank you for reviewing this.

Dennis [PII removed]

[nifei]

I got the same notification from IRS today, after I came back to check my  SCHEDULE 8812,  I noticed this

look like IRS is expecting the highlighted cell would be 1,000, not sure why.  

In addition, after I reviewed this table again,  I found, maybe the data generated from turbotax is not correct.

I have 2 children, one is 14, another is 2, so my understanding is 4a would be filled in 2, and 4b would be filled in 1, 4c would be filled in 1, and 6 would be filled in 0.

can someone help to check if my understanding is correct?

[RaifH]

When you look at the Line 5 Worksheet, I cannot determine how you would get to an amount of $1,000. Each eligible child for the child tax credit should result in an entry of at least $2,000 on that line. You can check out the Line 5 worksheet and apply it to your specific situation, but I believe that IRS notice must be in reference to a different line. You may have to contact them to see how they calculate it. 

The only reasons your allowable child tax credit would be $1,000 is if you already received $1,000 in advanced child tax credit payments, in which case your line 5 would still be $2,000 but Line 14f would be $1,000 or if your income phased out the child tax credit, in which case Line 5 would be $2,000 but Lines 11 and 12 would be $1,000 each. No matter what though, line 5 should be at least $2,000 if you have one or more qualifying children for the Child Tax Credit. 

@eaglerider52

@nifei I believe I responded to you in another thread. Your other child had an ITIN which is why they are not eligible for the child tax credit and instead are getting the other dependent credit. 

[eaglerider52]

Thank you very much!