I had the same problem. Received an IRS letter yesterday stating there was an error on my 2021 Form 1040 and I owed additional tax. Upon reviewing the 1040, and working through the lines one at a time, I found the Recovery Rebate Credit was the issue. I should not have recorded anything as I did receive the full amount.
However, what bothers me is the way it came about using TurboTax. Did I misunderstand the question? Or, was the question worded in such a way as to lead me to the wrong conclusion? Unfortunately there is no way to walk through the calculations again to see how it was asked.
Of course, TurboTax, Intuit would no doubt deny all culpability as this would be very embarrassing for them and potentially costly. And, even if the software was in error, no doubt Intuit will claim this is ultimately the taxpayer’s fault as I should have reviewed the form before submitting. But, that’s why I use TurboTax, so I don’t have to know every single nuance of tax law. I’ve used Turbotax for many years. Next year it will give me pause whether I use it again.
I’d like to know how many other people had this problem with TurboTax or any other tax filing software?
