topic Re: My refund amount went down in After you file

My refund amount went down

Da57 — Mon, 22 Mar 2021 10:26:41 GMT

After my refund status had been stuck in still processing status since being accepted on 2/12. I checked this weekend and received this message:

“We changed the amount claimed as Recovery Rebate Credit on your tax return. The error was in one or more of the following: The Social Security number of one or more individuals claimed as a qualifying dependent was missing or incomplete. The last name of one or more individuals claimed as a qualifying dependent does not match our records. One or more individuals claimed as a qualifying dependent exceeds the age limit. Your adjusted gross income exceeds $75,000 ($150,000 if married filing jointly, $112,500 if head of household). The amount was computed incorrectly.”

a huge difference (I am now receiving 1200 less and am not sure why turbo tax’s accuracy check did not catch this error

Re: My refund amount went down

DanaB27 — Mon, 22 Mar 2021 16:22:47 GMT

It seems that the IRS removed your Recovery Rebate Credit because you their records show that you had already received the full first and second stimulus payments or one of your dependents information was incomplete/wrong.

Please be aware, if you received Notice 1444 in the mail but have not received your payment as mentioned in the notice, then you need to request a trace to be able to claim the Recovery Rebate Credit on your 2020 tax return. Please see How do I request a payment trace to track my first or second Economic Impact Payments?

If the reason was an incorrect dependent information then you might want to verify your dependent information.

To be eligible for the credit you need to be a U.S. citizen or U.S. resident alien in 2020 and have a Social Security number that is valid for employment.

You cannot be claimed as a dependent by someone else to be eligible.

Your credit amount will be reduced if your 2020 adjusted gross income (AGI) is more than:

$150,000 if married and filing a joint return or filing as a qualifying widow or widower
$112,500 if filing as head of household or
$75,000 for eligible individuals filing as a single or as married filing separately.

Your payment will be reduced by 5% of the amount by which your AGI exceeds the applicable threshold above. (IRS FAQ Recovery Rebate Credit )

Re: My refund amount went down

montanaokie1 — Mon, 22 Mar 2021 16:32:09 GMT

It is Turbotax's fault. For some unknown reason, Turbotax entered $1200 on Line 30 of your return. This was done to many Turbotax customers' returns. When IRS sees this, they put a hold on your return, then reduce the amount of your projected return by $1200. Turbotax is not accepting responsibility for this mistake and many people's returns are being delayed and reduced by IRS. Look at the return that was prepared by Turbotax and you will see $1200 entered in Line 30. This should only be done if you didn't get your 1st stimulus payment. Good luck trying to get a refund from Turbotax!

Re: My refund amount went down

montanaokie1 — Mon, 22 Mar 2021 16:43:24 GMT

Re: My refund amount went down

MaryM428 — Mon, 22 Mar 2021 18:54:40 GMT

In some cases, TurboTax started your return with the amount of the stimulus payments added to your refund. Then when you went through TurboTax, it asked about whether you had received the stimulus payments. If you already had received your payments and then answered had received both stimulus payments, then Line 30 changed to zero, because you were not owed a back payment.

In your case, the IRS found that you had already received your two previous stimulus payments and so they removed the $1200 that has been added to your return to make up for a missed payment. If you had already received your first stimulus payment, then your answer on TurboTax should have been that you were not missing a payment and then Line 30 would have reset to zero.

This indicates that you told TurboTax that you received the $600 payment, but not the $1200 payment. The IRS checked and is indicating that you did receive the first stimulus payment.

Re: My refund amount went down

montanaokie1 — Sat, 27 Mar 2021 13:39:00 GMT

MaryM428. You seem to know a lot. "In some cases, TurboTax started your return with the amount of the stimulus payments added to your refund. " Q: In some cases? (you're busted)

"If you already had received your payments and then answered had received both stimulus payments, then Line 30 changed to zero," I am going to complete your sentence: "Except when Turbotax erroneously entered a number in Line 30 anyway."

Got it? Tubotax entered numbers in Line 30 for many taxpayers who answered that they HAD received both stimulus payments. That's a FACT.

To IRS, this looks like a tax return that is negligently claiming false credits. It is their obligation to single it out and review it. If I were prioritizing who gets their tax refund the fastest, it wouldn't be taxpayers who are trying to claim false credits... Just sayin'. The problem is, the taxpayer didn't do it. Turbotax did.

Re: My refund amount went down

KathrynG3 — Sat, 27 Mar 2021 14:19:55 GMT

Now that the return has been submitted with the Recovery Rebate Credit, you are correct, the IRS will automatically adjust the Recovery Rebate Credit for any calculation discrepancies.

TurboTax provides tax software for self-prepared tax returns. To accurately complete the stimulus payments in the return, a number must be entered and/or verified for each box.

All data in the return must be verified by the preparer before submitting the return.

For more information, see: 2020 Recovery Rebate Credit — Topic G: Correcting issues after the 2020 tax return is filed | Internal Revenue Service

@montanaokie1

Re: My refund amount went down

john_p_prenderga — Sat, 17 Apr 2021 00:32:37 GMT

Exactly the same thing happened to me.

I'm DONE with TurboTax. The lack of accountability is wholly unacceptable.

Intuit just cost me $1200, because there's no way in hell that IRS is going to issue a check for $1200 because Intuit made a mistake in calculating my return.

Re: My refund amount went down

Corneyhorse — Mon, 19 Apr 2021 04:18:56 GMT

I had gotten the same letter why did I get this for that's why I had turbo tax did it so it would be right

Re: My refund amount went down

cassiemeyer28 — Tue, 20 Apr 2021 19:03:51 GMT

I haven't recieved my taxes yet, can I get a extension on payment. It's supposed to come out of my refund

Re: My refund amount went down

elyckrd — Tue, 20 Apr 2021 19:08:26 GMT

The exact same thing happened to me. I am CONFIDENT that I answered 'yes' that I had received the stimulus payments, so there should not have been a $1200 entered by the TurboTax software on Line 30. It appears the IRS correctly adjusted my refund, so I don't claim to be cheated out of $1200. However, I use TurboTax because I am not a tax expert, & I rely on the software to do it's job. All I want is an admission of responsibility & a refund for the price of the tax software. This mistake kept my refund held up by the IRS for over 2 months. The least TurboTax could do is own their software mistake & refund the price of the software. Everybody makes mistakes. Just own it!

Re: My refund amount went down

VolvoGirl — Tue, 20 Apr 2021 19:11:19 GMT

@cassiemeyer28 Were the Turbo Tax fees supposed to come out of your refund? But the IRS is taking too long to send the refund so you got an email to pay the fees?

Turbo Tax says......

We understand that these are unprecedented times and we’re committed to helping our customers who are experiencing hardships. If you’re in need of assistance, call us by the Tuesday prior to your debit date at 1-888-808-1723 to speak with a trained specialist and mention “auto-debit”, or visit TurboTax Support.

From top of this FAQ

https://ttlc.intuit.com/community/charges-and-fees/help/why-was-my-bank-account-auto-debited-for-turbotax-fees/00/26102

Re: My refund amount went down

JotikaT2 — Tue, 20 Apr 2021 19:15:46 GMT

You also needed to enter the amount of each stimulus payment received for both the first and second stimulus payments. If you did not do this, then the credit would be generated as the program depends upon your input to calculate the credit correctly.

If you had entered yes, and also entered both amounts both payments, the credit would not have been calculated. You should have seen a screen similar to the one below:

If the amounts matched, you would have selected yes. If they did not, you needed to enter the actual amount received.

@elyckrd

Re: My refund amount went down

elyckrd — Tue, 20 Apr 2021 19:38:40 GMT

I understand that's how it *should* have worked, but it didn't. And, I understand that it is my word against TurboTax. But when I see this has happened to so many people, isn't it possible there was a glitch in the early versions of the software that has now been corrected in subsequent software updates? Anyway, I'm done. What's done is done.

Re: My refund amount went down

Mike256 — Sat, 01 May 2021 23:27:36 GMT

I received the same response.

We changed the amount claimed as Recovery Rebate Credit on your tax return. The error was in one or more of the following:

The Social Security number of one or more individuals claimed as a qualifying dependent was missing or incomplete.
The last name of one or more individuals claimed as a qualifying dependent does not match our records.
One or more individuals claimed as a qualifying dependent exceeds the age limit.
Your adjusted gross income exceeds $75,000 ($150,000 if married filing jointly, $112,500 if head of household).
The amount was computed incorrectly.

Now seeing as I don't qualify for a stimulus check, much less received one and stated so on your form, how does this happen? Surely a flaw in your software. I specifically remember your "site" saying "after reviewing your adjusted gross income, you should have received a stimulus check" . Now that my refund has been reduced, not to mention held up for MONTHS, do you have any plans to make things right with your customer base, or are you just willing to lose us customers that have been faithful to you for years? Think real hard before you answer!

Re: My refund amount went down

ThomasM125 — Mon, 03 May 2021 20:03:28 GMT

@Mike256 There are two issues here, the first being are you entitled to the stimulus payment, and the other being was the return completed properly. Without knowing what your responses where in TurboTax, I can't help you with whether the return was prepared properly. If you are not due the stimulus payment, however, the IRS will not pay it to you and it wouldn't be fair in my mind to expect TurboTax to pay it either, as the payment comes from the government, not TurboTax.

TurboTax has an accuracy guarantee that will reimburse you for mistakes that the program makes, you can use this link to apply for compensation if you feel something was no calculated properly in the program:

https://ttlc.intuit.com/community/charges-and-fees/help/how-do-i-submit-a-claim-under-the-turbotax-100-accurate-calculation-guarantee-or-100-accurate-expert/00/26065

Re: My refund amount went down

Mike256 — Mon, 03 May 2021 22:38:02 GMT

OK,

I'll play with you!

If you would've taken the time to actually read my complaint, you wouldn't be asking the same questions that I already have answered. Are you based in India or South Africa maybe?

I did not qualify for the stimulus payment, I make over 100K per year. I never asked for the payment nor did I receive one.

My return was prepared accurately.

It was YOUR program that said I should have received the stimulus payment, not me.

Line 30 "Recovery Rebate Credit" on the return YOUR program added $143.00

This held up my return for months.

The IRS pulled this back along with $62 for trying to cheat the system.

I know that you have no intention of standing behind your mistake and I have no intention of ever using your service again. I can screw up my taxes less on my own, I don't need your help!

The link that you sent me clearly states that your100% accuracy guarantee does not and will not apply.

Accuracy Guarantee Claim Submission

Submit Your Case for Review

Please select the tax year for which you are having an issue:

Select a Year 2020 2019 2018 2017 Earlier

If you are submitting a claim for the most current tax year after April 15, have you received a notice from the IRS or other taxation authority?

Yes No

Does your notice state you have penalties and/or interest?

Yes No

If your notice does not include penalties or interest, your situation is not covered under the Accuracy Guarantee Terms & Conditions. The IRS sends a variety of notices each year, if you have been contacted by the IRS, click here to download and install the Audit Support Center. The Audit Support Center will provide step-by-step guidance to:

Find out why the IRS contacted you
Determine what the communication from IRS means
Prepare your next steps

If you have further questions regarding your notice after downloading and reviewing the Audit Support Center, click here to Contact Us.

Say goodbye to another long time client!

Re: My refund amount went down

Mike256 — Fri, 07 May 2021 22:14:52 GMT

Cat got your tongue?

Re: My refund amount went down

chongwj — Tue, 25 May 2021 00:28:48 GMT

I'm in a similar situation as I received a letter from IRS notice CP 12 tax year 2020 today saying The last name of one or more individuals claimed as a qualifying dependent does not match our records. One or more individuals claimed as a qualifying dependent exceeds the age limit. Your adjusted gross income exceeds $75,000 ($150,000 if married filing jointly, $112,500 if head of household). The amount was computed incorrectly.” the amount was computed incorrectly (683D)

Re: My refund amount went down

Taxes — Fri, 28 May 2021 19:02:47 GMT

Come on let’s tell the truth here!

I did respond that I had received all payments, and the software still added the 1,100 Recovery rebate credit.