Just received Notice CP11 from IRS stating I owe them $1100 due to a miscalculation on my 2020 Form 1040SR

[kcomtois]

The letter goes on to say it affects the following area of my return:  Recovery Rebate Credit.  Can you help me understand how this could have happened with Turbo Tax? 

[xmasbaby0 · Accepted solution]

Lots of people made mistakes when they answered the questions about the recovery rebate credit on a 2020 ta return.   If you answered incorrectly and did not enter ALL of the stimulus money you had already received in 2020 and early 2021, then your refund would have been wrong.   The credit on line 30 was being used to apply toward either your refund or your 2020 tax due.   If you do not qualify for the credit it could cause you to owe tax due now.

I RECEIVED A LETTER FROM THE IRS/STATE

TurboTax does not receive any information from the IRS or your state after your return was filed, so no one at TurboTax knows about a letter you received from the IRS or the state.

(what the letters from the IRS mean)

I GOT A LETTER FROM THE IRS   

https://ttlc.intuit.com/questions/3605673-i-got-a-letter-or-notice-from-the-irs

I AM BEING AUDITED

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https://ttlc.intuit.com/questions/2924451-i-bought-max-or-audit-defense-and-now-i-m-being-audited

AUDIT SUPPORT

TurboTax has a special phone number for help with IRS/state tax letters, which will be easier than going through regular Customer Support.   At the page below, click on the blue button that says "Get Help from TurboTax Support".  Then it will ask you what tax year is your letter.  Then it will ask you what the letter concerns. Then it will show you the phone number during posted business hours.

https://support.turbotax.intuit.com/irs-notice/audit-support/

[Critter-3]

$1100  would have been for a  dependent child ...  the first stimulus payment was  $500 and the second payment was  $600.  

So when the program asked how much stimulus payment you got in advance did you forget to enter  the amount you got for your dependent ?    If so the IRS caught the error and corrected the credit. 

[joedotm40]

I just got message from IRS Stating i owe 595.69   DUE FOR  miscalculatio 2020 form 104SR

What should i d to answer it.

[Critter-3]

First review the IRS notice carefully against the filed tax return. Figure out where the difference is and see if the IRS is correct. Chances are the difference is line 30 of your form 1040 which is the credit for the stimulus payments you did not get in advance. The IRS is checking anyone with an amount on line 30 against their records of the payments that went out. So if the IRS is correct then your only option is to pay the bill. 

[slee0143]

I want to amend my return to buy an IRA so that I won't have to pay the $1,100 I took by mistake. I started an amended return, it will allow me to show the IRA but will not let me take the Recovery Rebate Credit $2,800 off.  It will not let me revisit that portion of the return.  What do I need to do?

[slee0143]

I want to amend my 2021 income tax return to buy an IRA so that I won't have to pay the $1,100 I took by mistake, amending the return it will allow me to show the IRA but will not let me take the Recovery Rebate Credit of $2,800 off.  It will not let me revisit that portion of the return.  What do I need to do?

[Rfbuford]

We got a CP11 stating we could not use the Recovery rebate credit because we made $more than the $75,000 on our tax forms but we filed a joint return and made less than the $150,000 which was required for a joint return. How do we get this corrected and get our refund?

[DoninGA]

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@Rfbuford wrote:

We got a CP11 stating we could not use the Recovery rebate credit because we made $more than the $75,000 on our tax forms but we filed a joint return and made less than the $150,000 which was required for a joint return. How do we get this corrected and get our refund?

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Did you indicate in the TurboTax program that you did Not receive the 3rd stimulus payment?  If so, the Recovery Rebate Credit would have been entered on your federal tax return Form 1040 Line 30.

However, if the IRS has records that show you were sent the 3rd stimulus payment they removed the 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 are Married Filing Jointly also check your spouse's tax account.

If you checked your bank account in the March - May 2021 timeframe and there is not a 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...

[NCperson]

@Rfbuford - first, let's be sure of the facts.  The IRS is normally not wrong from what i have seen.

1) how much did you receive for the 3rd stimulus payment. Please check your bank account statements (do not do from memory) from March - May  2021

2) what do you have on Line 30 for Form 1040?

3) what is Line 11 of Form 1040?  

4) What is on Line 12a of Form 1040? 

please post back with your findings and we can figure this out.

[Nbmorales1]

Recovery rebate credit   Tax you owe    $5836.00

                                   Payments I made     $3739.00

                                  Total penalties           $  524.25

                                   Total Interest             $  119.25

  Amount Due  by  March 6,2023             $2,740.50               

[JulieS]

It sounds like you claimed the Recovery Rebate Credit and the IRS says that you already received it as a direct payment. 

Based on what you are showing they say you owe $2740.50. "Tax you owe $5836" is the total tax liability for the year. That should match line 24 of your 2021 1040. 

They acknowledge payments of $3739.00 (tax withheld and credits) already made. This reduces what you owe.

If you don't feel like you understand the notice, or you don't agree with it, you can contact the Audit Support Center. Click here to get started. 

Click here for more resources to deal with a CP11. 

[fonza55]

They said that they found and corrected an error  and as a result I owe $986.24. I need to know what

was the error.

[DoninGA]

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@fonza55 wrote:

They said that they found and corrected an error  and as a result I owe $986.24. I need to know what

was the error.

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The CP11 notice you received should have explained exactly what was changed on your tax return and why you owe.  What does it say?

Go to this IRS website for the CP11 notice - https://www.irs.gov/individuals/understanding-your-cp11-notice

[imalilsunshine]

I received an IRS CP11 due to an error in the Recovery Rebate Credit calculation on my 2021 return. I paid the $2800 plus the penalty and interest. Do I report the amount paid following that notice on my 2022 taxes? If so, where?