What do I do if Intuit TurboTax made a mistake on my taxes?

[montanaokie1]

This is only written to protect Turbotax, not YOU. This is no guarantee of Turbotax preparing an accurate return. This only explains all of the things that Turbotax is NOT responsible for. 

[tohottohandle55]

the IRS changed the amount claimed as recovery rebate credit on my tax return. It said my social was wrong

and individuals claimed as dependent was missing. I dont have any dependents and I put the social security

number when I filed. It said my adjusted gross income exceeds 75,000. I did everything correct. I have the printed copy. So what happened.

[bob651]

Turbo Tax corrected a calculation error on a form  on my 2020 Minnesota Tax Return after I filed my taxes using forms that were updated current at the time.   What guarantee for 100% correct do I fall under.  The updated calculation resulted in a larger refund which I did not receive.  I understand I can filed an amended return, but what does TurboTax give me for the error they made.

[sirthomaswantsalot]

On the credit line it said I received a 1800.00 credit it originally in the refund area it showed it was going to be a 37.00 dollar refund then it went to a blank screen for a moment for a second and came back and said I had a tax credit of 1800.00 then the total refund went to 1837.00, I just looked up Federal refund and it kept saying it was in process, and I couldn't figure why it was taking so long then I checked the site it  again and it said my refund was only going to be 37.00 and they said they will be sending an explanation letter why the refund was reduced. 

[VolvoGirl]

1800 was the amount for the first 2 Stimulus payments 1200+600.  Did you already get them?  You tried to get it again on line 30.  But the IRS thinks they already sent you the 1800.  

[johnrpowell]

I calculated my taxes with TurboTax. 

I then remembered that I had sold some S Corp stock for $ 1,900.00. My basis in this stock was $190.00, 30 years ago. This gave me a long-term capital gain of $1,710.00.

TurboTax calculated an increase in my tax liability of $562.00. (33%).

This is clearly wrong. Any Ideas?   

[VolvoGirl]

When you enter one taxable transaction, you can't just watch the monitor.  You increased your overall adjusted gross income and with that come many other changes in your return, not just the incremental tax on the one transaction.

Like for example it increased your AGI and that would decrease some deductions if you itemized on Schedule A.  And by increasing your AGI it might reduce some credits you were getting like EIC.  And can make more of any Social Security taxable.

I once added $6 in interest and the tax went up $12! It pushed me into the next tax bracket. I was right at the line.

[VolvoGirl]

If you have capital gains or qualified dividends the tax is not taken from the tax table but is calculated separately from schedule D.  The tax will be calculated on the Qualified Dividends and Capital Gain Tax Worksheet.  It does not get filed with your return.  In the online version you need to save your return as a pdf file and include all worksheets to see it.

For the Desktop version you can switch to Forms Mode and open the worksheet to see it.  Click Forms in the upper right (upper left for Mac) and look through the list and open the Qualified Dividends and Capital Gain Tax Worksheet.

[richardjwaksman]

Thank you. Very helpful.

[Paulette Carey]

Received only a half of what turbo tax stated my return should have been. I have checked with the IRS and I do not owe any thing. What should I do?

[xmasbaby0]

Wait for the letter the IRS will send you.   TurboTax never knows why or when the IRS reduces a refund but the IRS will be sending out a letter to explain it to you in several weeks.

Did you enter  ALL of the stimulus money that you had already received correctly in the recovery rebate credit section when you prepared your 2020 return?  The IRS cross checks and if you did not enter all of the money you received, they recalculate your refund.

MY REFUND WAS LESS THAN I EXPECTED

There can be a number of reasons why your refund was less than the amount you expected. First of all, look carefully at your actual tax returns.  There is sometimes confusion about the amount of refund to expect when users misinterpret the “summary” they saw in TurboTax. The amount of your refund is on your tax return.  Federal refund is on line 34 on Form 1040  State tax forms are all different so we cannot tell you what line to look at on your state form.  BUT it is important to actually LOOK at your tax return forms yourself and see the amounts of your tax refunds and/or tax due.  A lot of confusion would be avoided by doing that.

TurboTax does not receive feedback from the IRS regarding money that was offset from your refund.  If you owed back taxes, child support, student loan debt, etc. you will receive a letter of explanation from the IRS in several weeks.  The WMR site will contain a message regarding your offset.  It is also possible that the IRS caught a mistake you made and reduced your refund. 

A possible reason for the reduction could be that the recovery rebate credit was completed incorrectly and you may have entered the amount of stimulus already received wrong, which could have reduced the refund you thought you were seeing.

 It is also possible that your state reduced your refund for debts owed in your state—if the state reduced your state refund you will receive a letter from the state.

https://www.irs.gov/uac/tax-refund-offsets-pay-unpaid-debts

 IRS Treasury Offset Program Call Center at 1-800-304-3107

Be aware also that your Federal refund and state refund do NOT come together.  Federal and state tax returns are processed by two completely separate entities.  There is no rule as to which one will come first,

Did you choose to have TT fees deducted from your Federal refund?  (Remember that if you did that, you also agreed to an extra refund processing fee of $39.99)

How can I see my TurboTax  fees?   

https://ttlc.intuit.com/questions/2565973-how-do-i-review-my-fees-in-turbotax-online

 https://www.irs.gov/uac/tax-refund-offsets-pay-unpaid-debts

https://ttlc.intuit.com/community/refunds/help/what-is-a-refund-offset/00/26301

Reduced Refund      https://www.irs.gov/taxtopics/tc203

 NOTE: You can contact the IRS Treasury Offset Program Call Center at 1-800-304-3107 to ask if they have an offset for you on file. TurboTax would not have that information.

https://turbotax.intuit.com/tax-tips/tax-payments/who-can-garnish-an-income-tax-refund/L7cPPzDyc

[dszorlan]

The IRS is telling me there was a mistake on on my return and they took my refund and said I owe $40

[VolvoGirl]

Is it for the Recovery Rebate Credit? A common adjustment is if you claimed the Recovery rebate credit on 1040 line 30 when you already got the Stimulus payment or got the second one after you filed or reported the wrong amounts or entered them in the wrong box. Do you have an amount on line 30?

[DawnC]

You should receive a notice from the IRS explaining the adjustment.   There will be instructions in the case that you do not agree with the adjustment.   In the unlikely event, there was a calculation issue, you can refer to the TurboTax 100% Accurate Calculation Guarantee.

@dszorlan

[Jimmy_76]

The same thing happened to me. Have been checking for over ten weeks for my refund! Now the unpleasant lady I talked to today at irs asks me well it’s still processing. I ask why? It’s a simple return ! She says I see here you claimed you didn’t get stimulus?! I said when TurboTax asked me I said I did receive it for my wife and kids! She says well maybe that’s the problem? So I ask what do I do I want my refund! She says nothing! You might get a letter 🤷🏻‍♂️ 😡