Turbo tax Calculation error for the tax year 2020 leads to an audit and return of the refund with the penalty.
Is it Turbotax did a calculation mistake that now I have to return my 2020 refund with penalties and interest? I used Turbotax online portal to file my 2020 taxes and received a refund on time. Now after two years I received an audit stating a tax calculation error. I responded to the audit with all the required documents and Now IRS concludes I owe the refund money with interest and penalties to IRS which turbo tax calculated.
In response to the Audit report, IRS stated. “Thank you for the correspondence. Even though you have fully proven the 4,000.00 of education expenses for each of you, you both are over the qualifying age to claim the American Opportunity Credit. You should refer to our Publication 970 online @www.ire.gov under forms and publications for other options to claim the expenses. There is a per return limit of up to 10,000.00 of expenses for a 2,000.00 credit for Lifetime Learning Credit and your other option is Tuition & Fees deduction. One for Lifetime and one for the tuition deduction which is why we did not just take both of your totals and move both to take the Lifetime Learning Credit. Once you decide, you will need to send in the portal, a new form 8863 for one of you to take the Lifetime Learning Credit or a form for each of you to take the Lifetime Learning credit and if one each then one 8863 & form 8917 for the other to take the tuition & fees”
How did the turbo tax online portal let us proceed to claim the American Opportunity Credit if our criteria don't match? Is there any TurboTax team going to help or guide us to fix those messes or we are all by ourselves and pay the amount? need some suggestions.
