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deecota4
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The IRS recalculated my refund now I have to pay. What will Turbo Tax do to help?

 
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3 Replies

The IRS recalculated my refund now I have to pay. What will Turbo Tax do to help?

You have not mentioned what the IRS changed.   If you made a user error then the IRS recalculate and you now need to pay the tax due.   You can do that by mailing a check or money order or by going to the IRS payment site.

https://www.irs.gov/payments

 

 

We have seen a LOT of users who made mistakes with either the recovery rebate credit or the child tax credit.   Did the IRS have to make a change because of an amount you entered on line 28 or line 30 of your Form 1040?

 

TurboTax does not get any information from the IRS after you file your tax return, so no one at TT knows why your refund was less.

 

You have not mentioned any specific amounts.  Sometimes we can make an educated guess as to the reason for your reduced refund if you mention specific amounts--for example if your refund was short by $1400 per person---it is likely to be a mix up regarding the 3rd EIP payment.    If you received the 3rd stimulus check of $1400 per person in 2021 then you got letter 6475 from the IRS about it.   You needed to enter the amount you received.   If you already received that money then line 30 on your Form 1040 should have been blank.

 

 

 

 

  If it is short by $1800 or  $1500 or  a multiple of that amount  ---   maybe a mixup regarding the advance child tax credit payments. If you received monthly child tax credit payments of $250 or $300 per month between July and December of 2021, then you got letter 6419 from the IRS, and you were required to enter the amount of the advance payments.   Only the remaining amount of the CTC should have been on line 28 of your Form 1040.

 

It is important for you to understand that if you filed a joint return, the IRS sent letter 6475 and/or letter 6419 to EACH spouse, and you had to enter the TOTAL from those two letters.   Many people only used one of the letters--which leads to the IRS having to recalculate an inflated refund.

 

The IRS knows how much they sent to you for the 3rd stimulus check and they know how much they sent for advance child tax credit payments.   If you answered something incorrectly on your tax return then the IRS made a correction that resulted in a reduced refund for you. 

 

 

 

 

The IRS will send you a letter that explains why your refund was reduced.   Meanwhile it might help you to check your online IRS account.

 

 

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

 

 

https://blog.turbotax.intuit.com/tax-refunds/why-is-my-tax-refund-not-what-i-expected-49240/

 

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

 

If you need to trace a payment that the IRS says has been issued to you, mail or fax a completed IRS Form 3911, Taxpayer Statement Regarding Refund.

 

 

 

 

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

The IRS recalculated my refund now I have to pay. What will Turbo Tax do to help?

Did you get the IRS letter saying what they changed?    The 2 most common reasons this year is you entered the wrong amount on line 30 for the Recovery Rebate Credit (3rd Stimulus payment) or line 28 for the Child Tax Credit.  Those lines are just if you didn't already get the full amount or qualify for more.  The IRS knows what they already sent you.  

How much was your refund?  What do you owe now?  How much is on your line 28 or 30?

 

A lot of people answered the questions wrong and tried to claim the credits again.  Double check your bank statements and Check your IRS account (both accounts if married)

Your Online Account | Internal Revenue Service

 

For line 30 Recovery Rebate Credit,  The 3rd Stimulus payment started going out in March 2021 and is for 1,400 for each person listed on your tax return, no age limit. The IRS used your 2020 (or 2019) return to send the checks out fast. If your 2021 return changes and you qualify for more you can claim the extra as the Recovery Rebate Credit on 1040 line 30. But line 30 is only if you didn't get the full amount or qualify for more. Not the amount you already got. The IRS also sent out letter 6475 to tell you how much they sent you . If you are married then each spouse should get a letter for half.

 

 

The IRS recalculated my refund now I have to pay. What will Turbo Tax do to help?

@deecota4 - can you be more specific? most every adjustment I see on these boards has to do with 

 

1) line 30 - Recovery Rebate Credit

2) line 28 - Child Tax Credit

 

a) which one was it?

b) what was the amount of the adjustment

 

the problem normally boils down to the amount you entered when prompted by TT as the amount you received from the IRS in 2021 does not match what the IRS records indicate they sent you.  THAT difference is the adjustment

 

does that help? if you respond to my questions I can guide you to what went wrong specifically, 

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