I received a letter from the IRS today that mentions my Child Tax Credit was incorrectly calculated in my Schedule 8812 and I owe additional taxes. When I reviewed my return TurboTax Schedule 8812 Line 5 says 6000. When I crunch the numbers manually using the Schedule 8812 worksheet off the IRS' website I calculated 4000 (not 6000).
I'm confused as to how TurboTax miscalculated line 5 as the only manual input (for my scenario) is number of children. All the other inputs to the calculation are set figures based on simple ABC type scenarios.
How / where can I verify within my return how TurboTax came to the amount of 6000?
| 1. Multiply Schedule 8812, line 4b, by $3,600 | 0 | 0 |
| 2. Multiply Schedule 8812, line 4c, by $3,000 | 2 | 6000 |
| 3. Add line 1 and line 2 | 6000 | |
| 4. Multiply Schedule 8812, line 4a, by $2,000 | 2 | 4000 |
| 5. Subtract line 4 from line 3 | 2000 | |
| 6. Enter the amount shown below for your filing status | 12500 | |
| • Married filing jointly — $12,500 | ||
| • Qualifying widow(er) — $2,500 | ||
| • Head of household — $4,375 | ||
| • All other filing statuses — $6,250 | ||
| 7. Enter the smaller of line 5 or line 6 | 2000 | |
| 8. Enter the amount shown below for your filing status | 150000 | |
| • Married filing jointly or Qualifying widow(er) — $150,000 | ||
| • Head of household — $112,500 | ||
| • All other filing statuses — $75,000 | ||
| 9. Subtract line 8 from Schedule 8812, line 3 | 144000 | |
| • If zero or less, enter -0- | ||
| • If more than zero and not a multiple of $1,000, enter the next multiple of $1,000 | ||
| 10. Multiply line 9 by 5% (0.05) | 7200 | |
| 11. Enter the smaller of line 7 or line 10 | 2000 | |
| 12. Subtract line 11 from line 3. Enter on Schedule 8812, line 5 | 4000 |
