Taxes owed in Turbo Tax incorrectly, IRS says I owe more federal taxes

[puistomies]

File and paid my federal taxes owed using Turbo Tax.  However, month plus later, receive a note from  IRS  (CP23) that payment was deficient and still owe over $1600.  How did this not get picked up in Turbo Tax or why was the federal tax amount calculated by Turbo Tax incorrect?  Doesn't Turbo Tax guarantee their calculations and results.  Makes me wonder about reliability of Turbo Tax.  The IRS note cited no errors other than the amount paid with tax filing deficient, so very surprised by the IRS letter.  

[VolvoGirl]

How did you pay it?  Did you mail a check with the 1040V voucher slip?  Or pay online?  Did you pay the amount on 1040 line 37?   You might have paid using the wrong 1040 slip.  

[puistomies]

Hi, Paid online, electronic bank withdrawal Psid the amount calculated by turboTax, same amount as reported on line 37 of the tax return.

[NCperson]

@puistomies  while I understand your frustration, be aware of how the TT guarentee works. 

Yes, they do guarentee the accurary of the tax return if the error is caused by their software's calcuations; however, they do not guarentee the accuracy of the tax return if the error is caused by data entry.  In faireness, if you don't enter a number accurately, the software calculations will output an incorrect answer and TT doesn't take responsibility for that. 

I suspect the issue stems from either line 28 or line 30 of the tax return.  What is on EACH of those two lines....

based on your response, I think I know what occured.  

[Mivan]

I have a similar issue with a 1040SR.  AGI agrees yet taxable income has difference of $1700. This is on a fairly basic return taking the standard deduction.

[VolvoGirl]

1700 is the extra amount of Standard Deduction if you are 65 or older.  Did you enter the wrong birthdate?

For 2021 the standard deduction amounts are:

Single 12,550 + 1,700 for 65 and over or blind (14,250)

HOH 18,800 + 1,700 for 65 and over or blind

Joint 25,100 + 1,350 for each 65 and over or blind

Married filing Separate 12,550 + 1,350 for 65 and over or blind

[whatwhat]

IRS did not accept Recovery Rebate Credit.  Is this a legit deduction and how does it work?

[xmasbaby0]

@whatwhat If you already received the 3rd stimulus payment of $1400 per person you cannot get the recovery rebate credit.

LOTS of people have made mistakes this year with the recovery rebate credit by "forgetting" that they received the $1400 per person stimulus checks last year.  They answered no to the questions for the  recovery recovery rebate credit and put the $1400 per person on line 30 of their returns.  But you cannot get it twice, so the IRS removes it when it is there by mistake.  The IRS sent letter 6475 showing that you received the 3rd stimulus check. 

It is very important that if you filed a joint return—-the IRS sent letter 6475 to EACH spouse.  You had to enter the total amount received.   Many people misunderstood and entered only the amount from one of the letters.

Try checking your online account with the IRS (and if you filed a joint return—check for BOTH of you)

https://www.irs.gov/payments/your-online-account

Does the IRS show that you received a $1400 per person stimulus or EIP check in 2021?   Did you receive it?   When you were asked on your tax return did you say no?   Was there $1400 per person on line 30 of your tax return?

If the IRS says you got $1400  per person last year but you did not receive it you can have it traced.

LOST THIRD STIMULUS CHECK

https://www.irs.gov/newsroom/questions-and-answers-about-the-third-round-economic-impact-payment-top...

[VolvoGirl]

The Recovery Rebate Credit on 1040 line 30 is if you didn't get the 3rd Stimulus payment .  

Did you not get the 3rd Stimulus payment that was 1400 per person last March 2021?   Or qualify for more?  1040 Line 30 is only if you didn't get the full amount or qualify for more.  The IRS shows they already sent it to you.  Turbo Tax asked you how much you already got.  And the IRS sent out letter 6475 telling you how much the sent you.  A letter to each spouse for half for married.

A lot of people forgot they got the deposit last March - May 2021.  Or missed one payment and entered the wrong amount.  Then when the IRS reduces their refund and they check their bank accounts they have been finding the payments.

Double check your bank statements and Check your IRS account (both accounts if married)

Your Online Account | Internal Revenue Service

If the IRS thinks they sent it to you but you didn't get it request a trace for a missing third Stimulus payment

https://www.irs.gov/newsroom/questions-and-answers-about-the-third-economic-impact-payment-topic-j-p...