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New Member

Refund question

Is there any way to find out what was done wrong on our return? TT had our refund at $9500.00 but the IRS only refunded us $3100.00.  The IRS says our return had a miscalculation with Earned Income Tax Credit.  Is there anything that can be argued with the IRS for this return? or learned so we don't make this mistake again? Thanks

3 Replies
Level 15

Refund question

In most cases there is nothing wrong with the EIC calculations themself, but the IRS changed something else, such as adding unreported income which in turn caused the EIC to calculate differently.    The IRS letter should tell you what they changed.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
Opus 17
Level 15

Refund question

Yes, you can appeal, but it depends on the facts and circumstances.  As @macuser_22 said, probably the IRS changed something else, which indirectly changed EIC also, and you need to figure out what that was.


For example, suppose you had a GoFundMe campaign to pay medical expenses, and GFM sent a 1099-K.  That's not taxable income because it's a gift, but the IRS might have determined it should have been taxable, which disqualified you from EIC.  Your response to the IRS letter would be a letter of explanation as to why the 1099-K was not taxable income and including documentation and other proof that the campaign was a gift.


Or, for example you might have forgotten to include unemployment compensation, and when the IRS added it, you were disqualified from EIC.


Or, someone used your SSN fraudulently on a 1099 so the IRS thinks you had more income.


You need to carefully analyze the IRS letter that explains the EIC adjustment.  You may be able to get more information, especially about additional income that was added to your account, by getting a Wage and Income transcript from your IRS account.

*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*
Level 15

Refund question

And check any dependents listed.  Maybe someone else claimed the same dependent or the IRS disallowed one.

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