IRS says there is an error on Schedule 8812 and is asking me to pay back the Advanced Child Tax Credit. Is this a bug in TurboTax?

[everhoogen]

The IRS is asking me to pay back exactly the amount of the Advanced CTC. I reviewed schedule 8812 and can't find the error. I had TurboTax do all calculations, so I am surprised that there is an error.

[Critter-3]

Look at your form 1040 line 28 ... how much is there as a credit ?   How much did you get in advance ?

How much is on the 8812 line 14f?

[everhoogen]

1040 line 28 is $1800.

In advance we received $950.

8812 line 14f is $1800. 

IRS is asking us to pay back $950. 

Thanks.

[SweetieJean]

TT does the calculations based on your data entry and answers to the questions.  Could you have made an error in doing so?

[xmasbaby0 · Accepted solution]

How many children do you have?   What are the ages of the children?   The advance child tax credit was either $250 per month for children 6 or older, or $300 per month for children under 6.    If you received payments from July to December, you would have received at least $1500, if not more.    The IRS sent letter 6419 to EACH parent if you filed a joint return, and you have to use the amount from each of those letters so that you enter the total that was received.

It sounds like you may have made the mistake of entering only the amount from one of your letters.   If you did that then you had too much on line 28 of your tax return, and the IRS then re-calculated the amount you could get for the remaining CTC.

Check your deposits from July to December, and check online IRS accounts for EACH of you to see how much the IRS actually sent to you between July and December.

https://www.irs.gov/payments/your-online-account

[everhoogen]

Thank you. I think this was the problem: I didn't realize that my wife was also sent the credit. (We never cashed the check and will follow up with IRS.)

[NCperson]

@everhoogen- assuming you still have the check, then why not just cash it????

8812 line 14f is $1800. 

IRS is asking us to pay back $950. 

you told Turbo Tax you received $1800, but if you sum all the checks you received from the IRS (including what you did not cash), I suspect that is $2750, hench the IRS sent you $2750 but you told TT that they only sent you $1800 - that is the difference .

[everhoogen]

We don't have it. We think it never arrived in the mail.

[xmasbaby0]

@everhoogen 

LOST THIRD STIMULUS CHECK

https://www.irs.gov/newsroom/questions-and-answers-about-the-third-round-economic-impact-payment-top...

If you need to trace a payment that the IRS says has been issued to you, mail or fax a completed IRS Form 3911, Taxpayer Statement Regarding Refund.

[xmasbaby0 · Accepted solution]

@everhoogen "The check?"    Now it is getting even more confusing.   There would have been SIX  advance child tax credit payments made around the 15th of each month during July to December.   Have you checked your bank account to see how much was deposited during those six months?   Do not rely on your memory.   Check your bank account.      

[everhoogen]

Thanks again. My wife has a separate bank account and I had checked there. But in fact they deposited both the credit for her and for me in my account. What got me confused was the 6419 letter to me that just listed $950, not the $1900 total that we received.

[NCperson]

@everhoogen - that is because there were supposed to be TWO 6419 letters, one addressed to each of you.  I can't begin to court the number of people who either didn't receive the 2nd letter or didn't realize the two letters were not duplicates, but rather additive.  Glad everyone was cleared up.