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New Member
posted Mar 22, 2021 1:57:58 PM

Tax Miscalculation on 1040SR

I got a letter saying that the IRS changed the amount claimed as Recovery Rebate Credit error was because one 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 the 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.
  • Then amount was computed incorrectly (638D).

Is this an error in calculation on Turbo Tax's part, or the IRS?

They are taking away the Recovery Rebate Credit on line 30 of out 1040SR resulting in not only losing our refund, but now we owe the IRS

Can you help explain what is happening here?

 

0 2 393
2 Replies
Employee Tax Expert
Mar 22, 2021 2:15:53 PM

It depends. Since we cannot see your tax return, we cannot exactly pinpoint the reason. There could be a lot of different factors that cause the IRS to adjust your credit.

  • How much was your Recovery Rebate Credit and how much did you receive in stimulus payments during the year? 
  • Did you receive the second stimulus payment in the start of 2021 and not indicate so on your return?
  • What is your family size?
  • Was your AGI recalculated? 
  • Are the social security numbers correct for yourself, spouse and dependents (if applicable)? 

 

Returning Member
Jul 21, 2021 1:19:27 PM

Same thing happened to us...We did not have any issues but did have back taxes.  Still the amounts are not correct.  Have to wait to get the letter on 7/26 to determine reasons that the math did not add up.