My refund amount went down

[Da57]

After my refund status had been stuck in still processing status since being accepted on 2/12. I checked this weekend and received this message:

“We changed the amount claimed as Recovery Rebate Credit on your tax return. The error was in one or more of the following: The Social Security number of one or more individuals claimed as a qualifying dependent was missing or incomplete. The last name of one or more individuals claimed as a qualifying dependent does not match our records. One or more individuals claimed as a qualifying dependent exceeds the age limit. Your adjusted gross income exceeds $75,000 ($150,000 if married filing jointly, $112,500 if head of household). The amount was computed incorrectly.”

a huge difference (I am now receiving 1200 less and am not sure why turbo tax’s accuracy check did not catch this error 

[DanaB27]

It seems that the IRS removed your Recovery Rebate Credit  because you their records show that you had already received the full first and second stimulus payments or one of your dependents information was incomplete/wrong.

Please be aware, if you received Notice 1444 in the mail but have not received your payment as mentioned in the notice, then you need to request a trace to be able to claim the Recovery Rebate Credit on your 2020 tax return. Please see How do I request a payment trace to track my first or second Economic Impact Payments?

If the reason was an incorrect dependent information then you might want to verify your dependent information.

To be eligible for the credit you need to be a U.S. citizen or U.S. resident alien in 2020 and have a Social Security number that is valid for employment.

You cannot be claimed as a dependent by someone else to be eligible. 

Your credit amount will be reduced if your 2020 adjusted gross income (AGI) is more than: 

• $150,000 if married and filing a joint return or filing as a qualifying widow or widower
• $112,500 if filing as head of household or
• $75,000 for eligible individuals filing as a single or as married filing separately.  

Your payment will be reduced by 5% of the amount by which your AGI exceeds the applicable threshold above. (IRS FAQ Recovery Rebate Credit )

[montanaokie1]

It is Turbotax's fault. For some unknown reason, Turbotax entered $1200 on Line 30 of your return. This was done to many Turbotax customers' returns. When IRS sees this, they put a hold on your return, then reduce the amount of your projected return by $1200. Turbotax is not accepting responsibility for this mistake and many people's returns are being delayed and reduced by IRS. Look at the return that was prepared by Turbotax and you will see $1200 entered in Line 30. This should only be done if you didn't get your 1st stimulus payment. Good luck trying to get a refund from Turbotax!

[montanaokie1]

It is Turbotax's fault. For some unknown reason, Turbotax entered $1200 on Line 30 of your return. This was done to many Turbotax customers' returns. When IRS sees this, they put a hold on your return, then reduce the amount of your projected return by $1200. Turbotax is not accepting responsibility for this mistake and many people's returns are being delayed and reduced by IRS. Look at the return that was prepared by Turbotax and you will see $1200 entered in Line 30. This should only be done if you didn't get your 1st stimulus payment. Good luck trying to get a refund from Turbotax!

[MaryM428]

In some cases, TurboTax started your return with the amount of the stimulus payments added to your refund.  Then when you went through TurboTax, it asked about whether you had received the stimulus payments.  If you already had received your payments and then answered had received both stimulus payments, then Line 30 changed to zero, because you were not owed a back payment.

In your case, the IRS found that you had already received your two previous stimulus payments and so they removed the $1200 that has been added to your return to make up for a missed payment.  If you had already received your first stimulus payment, then your answer on TurboTax should have been that you were not missing a payment and then Line 30 would have reset to zero.

This indicates that you told TurboTax that you received the $600 payment, but not the $1200 payment.  The IRS checked and is indicating that you did receive the first stimulus payment.

[montanaokie1]

MaryM428. You seem to know a lot. "In some cases, TurboTax started your return with the amount of the stimulus payments added to your refund. " Q: In some cases? (you're busted)

"If you already had received your payments and then answered had received both stimulus payments, then Line 30 changed to zero," I am going to complete your sentence: "Except when Turbotax erroneously entered a number in Line 30 anyway." 

Got it? Tubotax entered numbers in Line 30 for many taxpayers who answered that they HAD received both stimulus payments. That's a FACT.

To IRS, this looks like a tax return that is negligently claiming false credits. It is their obligation to single it out and review it. If I were prioritizing who gets their tax refund the fastest, it wouldn't be taxpayers who are trying to claim false credits... Just sayin'. The problem is, the taxpayer didn't do it. Turbotax did.

[KathrynG3]

Now that the return has been submitted with the Recovery Rebate Credit, you are correct, the IRS will automatically adjust the Recovery Rebate Credit for any calculation discrepancies.

TurboTax provides tax software for self-prepared tax returns. To accurately complete the stimulus payments in the return, a number must be entered and/or verified for each box.

All data in the return must be verified by the preparer before submitting the return.

For more information, see: 2020 Recovery Rebate Credit — Topic G: Correcting issues after the 2020 tax return is filed | Intern...

@montanaokie1

[john_p_prenderga]

Exactly the same thing happened to me.

I'm DONE with TurboTax.  The lack of accountability is wholly unacceptable.

Intuit just cost me $1200, because there's no way in hell that IRS is going to issue a check for $1200 because Intuit made a mistake in calculating my return.

[Corneyhorse]

I had gotten the same letter why did I get this for that's why I had turbo tax did it so it would be right 

[cassiemeyer28]

I haven't recieved my taxes yet, can I get a extension on payment. It's supposed to come out of my refund

[elyckrd]

The exact same thing happened to me. I am CONFIDENT that I answered 'yes' that I had received the stimulus payments, so there should not have been a $1200 entered by the TurboTax software on Line 30.  It appears the IRS correctly adjusted my refund, so I don't claim to be cheated out of $1200. However, I use TurboTax because I am not a tax expert, & I rely on the software to do it's job. All I want is an admission of responsibility & a refund for the price of the tax software. This mistake kept my refund held up by the IRS for over 2 months. The least TurboTax could do is own their software mistake & refund the price of the software. Everybody makes mistakes. Just own it!

[VolvoGirl]

@cassiemeyer28   Were the Turbo Tax fees supposed to come out of your refund?  But the IRS is taking too long to send the refund so you got an email to pay the fees?

Turbo Tax says......

We understand that these are unprecedented times and we’re committed to helping our customers who are experiencing hardships. If you’re in need of assistance, call us by the Tuesday prior to your debit date at 1-888-808-1723 to speak with a trained specialist and mention “auto-debit”, or visit TurboTax Support.

From top of this FAQ

https://ttlc.intuit.com/community/charges-and-fees/help/why-was-my-bank-account-auto-debited-for-tur...

[JotikaT2]

You also needed to enter the amount of each stimulus payment received for both the first and second stimulus payments.  If you did not do this, then the credit would be generated as the program depends upon your input to calculate the credit correctly.  

If you had entered yes, and also entered both amounts both payments, the credit would not have been calculated.  You should have seen a screen similar to the one below:

If the amounts matched, you would have selected yes.  If they did not, you needed to enter the actual amount received.

@elyckrd

[elyckrd]

I understand that's how it *should* have worked, but it didn't. And, I understand that it is my word against TurboTax. But when I see this has happened to so many people, isn't it possible there was a glitch in the early versions of the software that has now been corrected in subsequent software updates? Anyway, I'm done. What's done is done.

[Mike256]

I received the same response. 

We changed the amount claimed as Recovery Rebate Credit on your tax return. The error was in one or more of the following:

• The Social Security number of one or more individuals claimed as a qualifying dependent was missing or incomplete.
• The last name of one or more individuals claimed as a qualifying dependent does not match our records.
• One or more individuals claimed as a qualifying dependent exceeds the age limit.
• Your adjusted gross income exceeds $75,000 ($150,000 if married filing jointly, $112,500 if head of household).
• The amount was computed incorrectly.

Now seeing as I don't qualify for a stimulus check, much less received one and stated so on your form, how does this happen? Surely a flaw in your software. I specifically remember your "site" saying "after reviewing your adjusted gross income, you should have received a stimulus check" .  Now that my refund has been reduced, not to mention held up for MONTHS, do you have any plans to make things right with your customer base, or are you just willing to lose us customers that have been faithful to you for years? Think real hard before you answer!