I was notified by the Illinois Dept of Revenue I was issued an Illinois Tax refund on April 27, 29018 in amount of $421.00. A recent review of our records revealed that a portion of this refund was not due you and was the result of the following taxpayer error.
After review of the documents you submitted for your 2018 property tax credit, we also reviewed your 2017 property tax credit. You claimed more than the amount due on your property tax bill. therefore we have adjusted your 2017 Schedule ICR, line 4a to the tax due on your 2016 property tax bill.
1st thing I did was check with the bank and get copies of my 1098 Substitutes for years 2015-2018.
2nd thing I did was check Turbo Tax 2017 for the property tax inputs.
The amount I see on the 1098 was $4122.10, when I check the Easy Step for Deductions & Credits I see Property Taxes references $8244.00.
When I click on the Amount I see the following Description:
Real Estate tax Paid on Principal Residence - $4,122
Real Estate Tax Reported on Form 1098 - $4,122
When I access Home Mortgage Interest worksheet referencing the Property Tax on line 7 for the amount of 4,122,10.
On the Schedule A - Itemized Deductions I see on line 6 - REAL ESTATE TAXES - $8,244. When I double click on the amount I see on the TAX and INTEREST DEDUCTION WORKSHEET Line 2a Real Estate Taxes not entered on form 1098 - $4,122 and on Line 2b Real Estate Taxes entered on Home Mortgage Int Worksheet - $4,122 and on Line 2g - Total from 2a though 2f = $8,244.00.
What I do not know is why did not Turbo Tax flag this as an error. I reran this again today and nothing was flagged as an error.
So now Illinois Dept of Revenue has notified me of the error, the idea regarding the Federal Return made me question what do I need to do to make this right.
The Refund from the federal side was $70.00 with the double amounts for the property tax added. If I reduce the Property Tax amount to get it inline with what the 1098 indicated @ $4122.10 I now owe $961.00,
I am just confirming that this is correct and if so hiow does one ammend this return>