The computation of the credit on Schedule 8812 was incorrect

Forum|Forum|3 years ago
November 19, 2022
3 replies
2 views

IRS asking me to pay the amount owed with penalties and interest. I used Turbo Tax.

TurboTax Online

NCperson

Level 15

@vbugata - normally the error is a mismatch between what you wrote down that you received for the Advance Tax Credit and what the IRS records indicate they sent you.

1) Check your bank account records from July - Dec, 2021. How much was deposited each month? What is the sum for the 6 months.

2) What is on line 14F of Form 8812? You were asked during the interview process how much you received for the Advance and your answer is reflected on this line.

these amounts needed to match, If they don't, this is why the IRS is asking for money

Critter-3

Level 15

The 8812 is computed using the information YOU entered for the advance CTC payments you recieved between last July and December 2021. If the IRS disagrees with the amount you entered for the advance payment the they will correct your error and send you a notice. Review the 8812 and line 28 of the form 1040 for accuracy.

But if you really believe the program was wrong you can put in for an accuracy claim.

Accuracy Guarantee https://ttlc.intuit.com/community/charges-and-fees/help/how-do-i-submit-a-claim-under-the-turbotax-1...

But it only covers actual CALCULATION errors in the program, not user error (and it’s almost always user error), and it only pays any penalties or interest resulting from that error, not the taxes. Either way, you are still responsible for the increase in tax.

vbugataAuthor

Level 2

I trust when you say it is "always user error" 🙂 I wish there was a way for the software to figure this out or at minimum flag if something is amiss. If IRS can, why not the Turbotax software? Hence investing in this software. Appreciate your reply!

Critter-3

Level 15

The program told you how much you were eligible for and asked you to provide the amount you got in advance. Not sure how much more the program can do for you. There is nothing they can "flag" or question further. It is a DIY program where you provide all the information required and the program completes the forms and does the math. If you went to a human maybe they would/could question you more or prompt you to look in your records for the payments or online at the IRS in your account. When you play the role of tax preparer it is up to you to get it right. Good news ... there are no more advance payments to reconcile on a return so we don't need to worry about that any longer.

VolvoGirl

Level 15

Did you enter the Advance Child Tax Credit amount you already got from the IRS letter 6419? That was only half of what they sent you. Each spouse got a letter for half. How much do you owe?