What do I do if Intuit TurboTax made a mistake on my taxes?

[NCperson]

@Barbs511 - in every single case posted on these boards where the IRS adjusted the refund, it has to do with either the Recovery Rebate Credit (stimulus), which is on Line 30 of Form 1040 or the Child Tax Credit on Line 28.

During the interview process, Turbo Tax asked you to enter how much you received for each of these credits.  if what you entered did not match what the IRS sent you, the IRS adjusted your tax return to match its records.

I can walk you through the math if you post back a few asnwers to these questions:

1) what is on Line 30 of your tax return?

2) what is on Line 28 of your tax return

3) what is the EXACT amount of the change (what was the exact refund you were expecting and what was the exact amount the IRS now says you owe)?

let's begin there and based on your responses, and one additional iterations of posts, I can explain what happened...

[VolvoGirl]

@Barbs511   Did the letter give you like 5 reasons?   How much is on your return liken 30?   Are you married with 4 dependents?  

The most common reason is you claimed the Recovery Rebate Credit on line 30 but the IRS says they already sent you the 3rd Stimulus payment.   You might have entered the wrong amount that the sent you.

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.

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

Your Online Account | Internal Revenue Service

[James Diehl]

I had you do my taxes for 2021 Year and did recovery rebate I was supposed to get $1400 back  and the IRS said y'all made a mistake I need some money 

[xmasbaby0]

@James Diehl First check line 30 on your income tax Form 1040.   Does it show $1400?   Then check your bank account for a deposit of $1400 sometime after mid-March of 2021---did you get $1400 as a stimulus check?  Check your online account with the IRS.  Does it show that the IRS sent you $1400?   Did you receive letter 6475 from the IRS about the 3rd stimulus check?   If you already received the $1400 last year you cannot get it again as a recovery rebate credit.  If the IRS records show that you received the $1400 already that is why your refund was reduced.

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

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.

[BroDo]

RE: 2021 US Tax Return

I received a notice from the IRS saying "We found an error on your Form 1040SR, which affects the following area of your return: Recovery Rebate Credit

We changed your return to correct this error. As a result you owe $2,071.61.

Why did this error happen. I don't remember anything about this when I was doing my taxes.

[VolvoGirl]

@BroDo    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...

[DoninGA]

---

@BroDo wrote:

RE: 2021 US Tax Return

I received a notice from the IRS saying "We found an error on your Form 1040SR, which affects the following area of your return: Recovery Rebate Credit

We changed your return to correct this error. As a result you owe $2,071.61.

Why did this error happen. I don't remember anything about this when I was doing my taxes.

---

Does the IRS website indicate that you were sent less than what was reported on your federal tax return Form 1040 Line 34? - https://www.irs.gov/refunds

If your refund is short then that is because you said you did not receive the 3rd stimulus payment and the IRS has records that show you were sent the 3rd stimulus payment so they removed the Recovery Rebate Credit that was entered on Form 1040 Line 30.

Go to this IRS website for your tax account to see if the 3rd stimulus payment is entered - https://www.irs.gov/payments/your-online-account
If you are Married Filing Jointly also check your spouse's tax account.

If you checked your bank account in the March - May 2021 timeframe and there is not a EIP3 payment from the IRS then go to this IRS website for how to start a trace on the payment - https://www.irs.gov/newsroom/questions-and-answers-about-the-third-economic-impact-payment-topic-j-p...

[xmasbaby0]

@BroDo You do not remember that you had to answer how much you received for the 3rd stimulus check(s)?   You were asked in Federal Review how much of the $1400 per person 3rd stimulus amount you received last year.   If you answered incorrectly, you would have ended up with an incorrect amount on line 30 of your Form 1040 for the recovery rebate credit.   If you artificially inflated your refund by putting an amount on line 30, the IRS caught the mistake and corrected your return.

Check your own bank statements for deposits of $1400 per person after mid-March of 2021, and check your online IRS account to see how much the IRS shows that they sent to you.

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...

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.

[sped3325]

I received a CP11 letter stating that there were errors on my return done by Turbo Tax and that I owed more money.   Does Turbo Tax address this or what needs to be done ?

[Critter-3]

First review the notice and your return carefully ... is the IRS correct ?   If they are was it a data entry error that you made as opposed to a calculation error by the program ? 

I GOT A LETTER FROM THE IRS   

https://ttlc.intuit.com/questions/3605673-i-got-a-letter-or-notice-from-the-irs

I AM BEING AUDITED

If you purchased Audit Defense:

https://ttlc.intuit.com/questions/2924451-i-bought-max-or-audit-defense-and-now-i-m-being-audited

AUDIT SUPPORT

https://support.turbotax.intuit.com/irs-notice/audit-support/

[VolvoGirl]

What were the errors?  Is it the letter giving 5 reasons?  How much do you owe?  What's the difference?  That could be the  list of generic reasons they give if they changed the Recovery rebate credit on line 30.  How much is on 1040 line 30?

If it is for the Recovery Rebate Credit.  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

[aalfonso]

I just received a letter that my form 8962 had the wrong total amounts. The monthly amounts that I added were correct but the calculation done my intuit was incorrect. I’ve been waiting for 6 months for my refund and it was held up by intuits mistake. Now I have to go through the hassle of trying to fix your mistake.  So if your service is guaranteed accuracy then do I get my money back?

[NCperson]

@aalfonso - if the monthly amounts were correct, how could the total amounts be incorrect? can you provide more detail? 

[dpkerr46]

I would like my money back for mistakes on my taxes. I was advised of a return and now I owe close to $700 on my state returns,

[xmasbaby0]

@dpkerr46 You have not mentioned what mistakes were made on your tax return(s).    Did the IRS or state send you a letter yet that explains why your refund was changed and why you now owe tax due?   TurboTax provided software for a do-it-yourself tax return.   If you answered something incorrectly or left out income, then that would be a user error which is not covered by the accuracy guarantee.  Provide some details....or...

I RECEIVED A LETTER FROM THE IRS/STATE

TurboTax does not receive any information from the IRS or your state after your return was filed, so no one at TurboTax knows about a letter you received from the IRS or the state.

(what the letters from the IRS mean)

I GOT A LETTER FROM THE IRS   

https://ttlc.intuit.com/questions/3605673-i-got-a-letter-or-notice-from-the-irs

I AM BEING AUDITED

If you purchased Audit Defense:

https://ttlc.intuit.com/questions/2924451-i-bought-max-or-audit-defense-and-now-i-m-being-audited

AUDIT SUPPORT

TurboTax has a special phone number for help with IRS/state tax letters, which will be easier than going through regular Customer Support.   At the page below, click on the blue button that says "Get Help from TurboTax Support".  Then it will ask you what tax year is your letter.  Then it will ask you what the letter concerns. Then it will show you the phone number during posted business hours.

https://support.turbotax.intuit.com/irs-notice/audit-support/