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Newaccountant
Level 2

The letter from IRS regarding form 8812

I received a notification from IRS that mentions I owe money (it is a whole amount of my received advance child credit payments plus interest). 

Here are those possible reasons listed in the letter:

1. The computation of the credit on Schedule 8812 was incorrect.

2. The amount on Schedule 8812 was not transferred correctly to the tax return.

3. The reconciliation of advance child credit payments was incorrect.

 

I did transfer received advance child credit payments to my tax return.

However, I noticed that number on Line 30 (the number of qualifying children taken into account in determining the annual advance amount you received for 2021) is incorrect.  It is a number 2 on line 30. While I have 3 kids (two of them are under 6 years old) and they are all listed as Dependents (I checked).

The number of qualifying children in box 2 of my Letter 6419 from IRS is 3.

 

I'm confused as to how TurboTax calculated the number of children on line 30. Is it possible that it could be a bug in TurboTax? I entered 3 children everywhere but TurboTax put 2 on line 30. Could it be the reason why I received this letter?

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Accepted Solutions
NCperson
Level 15

The letter from IRS regarding form 8812

1) please look at Form 8812 Line 14f - that is the amount you told Turbo Tax during the interview process that you had received already

 

2) please review your bank account statements from July - Dec, 2021.  Do not do this step from memory.  How much did the IRS deposit each month.  Look at all 6 months individually.

 

if 1) and 2) do not match, then the IRS will adjust your tax return by the difference.  1) is what you stated the IRS sent you and 2) is what they actually sent you.  they have to match. 

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4 Replies
xmasbaby0
Level 15

The letter from IRS regarding form 8812

 

 

 

Okay--you are confusing two different credits.   You are talking about 8812---which is for the child tax credit---but then referring to line 30---which is for the recovery rebate credit  (aka "3rd stimulus")

 

The child tax credit is shown on your Form 1040 on line 28.

 

The recovery rebate credit is shown on line 30.   

 

 

 

 

First---make sure all of your children are claimed as dependents on your Form 1040

 

Check your bank account---do not trust your memory---- and see what deposits of $300 or $250 per child were made to your account between July and December.   That total is the amount that you should have entered when you were asked how much advance child tax credit you received.   Letter 6419 was sent to EACH parent--with half the amount on each letter----so you had to add them together and enter the total received.

 

 

Check your online account with the IRS for EACH spouse.  What does the IRS say they sent to each of you for the advance child tax credit?

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

 

Check your line 28 on your Form 1040.   Is the amount on that line more than the amount you reported receiving?

 

 

Now check for deposits of $1400 per person on your tax return sometime after mid-March.  How much did you receive in 2021 for that 3rd stimulus?  The IRS sent you letter 6475 for the 3rd stimulus.   AGain....if you filed a joint return they sent TWO letters with half the amount on each letter---and you had to add the letters together.   Line 30 shows the amount you could still get if you did not receive $1400 per person on your tax return.  If you already got the 3rd stimulus for everyone then line 30 should be blank.   

**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.**
NCperson
Level 15

The letter from IRS regarding form 8812

1) please look at Form 8812 Line 14f - that is the amount you told Turbo Tax during the interview process that you had received already

 

2) please review your bank account statements from July - Dec, 2021.  Do not do this step from memory.  How much did the IRS deposit each month.  Look at all 6 months individually.

 

if 1) and 2) do not match, then the IRS will adjust your tax return by the difference.  1) is what you stated the IRS sent you and 2) is what they actually sent you.  they have to match. 

rjs
Level 15
Level 15

The letter from IRS regarding form 8812

The number of qualifying children on line 30 of Schedule 8812 is not calculated by TurboTax. TurboTax uses the number that you entered on the screen shown in the screen shot below. The number on line 30 of Schedule 8812 has nothing to do with the number of children that you entered as dependents.


Line 30 on Schedule 8812 has nothing to do with line 30 on Form 1040, which is for the Recovery Rebate Credit.

 

Number of qualifying children.png

 

Newaccountant
Level 2

The letter from IRS regarding form 8812

Yes, we just missed that second letter 6419. Thank you very much, you are so helpful!

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