Is there an error in the "Recovery rebate credit worksheet"?

[ThomasM125]

@jennyebean The calculation is fairly simple, so it is unlikely that TurboTax did not calculate it properly. However, since TurboTax guarantees the accuracy of their calculations, you can submit an accuracy guarantee claim to TurboTax and they will investigate and refund any interest or penalties you incur as a result of a bad calculation in TurboTax. Here is a link to submit a claim:

https://ttlc.intuit.com/community/charges-and-fees/help/how-do-i-submit-a-claim-under-the-turbotax-1...

[jddanielson]

agree with AZCams and sbhansen86, the turbotax logic isn't producing the same result as the IRS, which cause a 3 month delay in receiving my refund

[Cynthiad66]

jddanielson Please provide additional details about your issue.  

If you did not receive your first and/or second stimulus payment or if the amount received is not correct or if you did not receive the stimulus for a dependent child under age 17, you can claim it on your 2020 tax return as the Recovery Rebate Credit.

In TurboTax Online, to claim the Recovery Rebate credit please do the following:

1. Sign into your account and continue from where you left off
2. Click on Federal in the left-hand column, then on Federal Review on the top of the screen
3. On the next page titled Let's make sure you got the right stimulus amount, click on Continue
4. Follow the interview
5. TurboTax will determine whether you are entitled to any additional stimulus
6. Any stimulus amount remaining due to you will show as a credit on line 30 of your form 1040
7. The Recovery rebate credit worksheet will be attached to your e-filed return.

[lgkinney1]

Same situation happened to me. I now owe the IRS. I have checked the calculations in TurboTax Recovery Rebate Credit Worksheet. and they are accurate. No doubt there is or was an error in the TurboTax software. I am disappointed TurboTax won't fess up to this error.   

[lgkinney1]

Not necessarily true. I didn't receive a stimulus payment from the IRS. What then? 

[mtiwis]

Yes I had a similar error on my 2020 return. TT made an error and included $1200 on line 30 as Recovery Rebate. I did not qualify for it as my AGI exceeded the threshold limit. The same was the case if 2019 information had been used.

As a result of this error IRS billed me for a total of $ 1074.10.

I am now trying to figure out how to file a claim against TT as suggested by the TT CPA.

He admitted to the error, opoligized and promised to send a link that would allow me to file a claim. 

I'm keeping with the apparent lack of concern by TT for their clients, the CPA sent me the wrong link. 

Now, I am finding it almost impossible to contact any one in TT to help me to file the claim.

To make things worse for me, the CPA closed my case without resolving my issue.

Please let me know if you have any helpful tips for me in this situation.

Thanks 

mtiwis

[jez7]

My TurboTax refund was reduced after the IRS recalculated my Recovery Rebate Credit.  I received a notice (CP12) in the mail today for the tax year 2020.  Here is what the letter stated:

We believe there's a miscalculation on your 2020 Form 1040, which affects the following area of your return:

*Recovery Rebate Credit

We made changes to your return that correct this error.  As a result, you are due a refund of $X.00

Changes to your 2020 tax return

Information was changed because of the following:

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).

- The amount was computed incorrectly. (683D)

Under the section "What you need to do" - If you don't agree with the changes, the letter gives the phone number [phone number removed] to review your account.  It also states "We'll assume you agree with the information in this notice if we don't hear from you."

Was on hold for 30 minutes, and then spoke with someone.  Told them what was in the letter.  She then transferred me to another department who said they could not access specific information related to a SSN, just general questions.  I told her that we used TurboTax and that I had all of the correct information in front of me.  Children's SSN numbers are correct.  The spelling is correct.  I have the TurboTax form up showing all of the calculations.  She then said that she needed to transfer me to another IRS department that has access to my tax records.  Transferred me, and then a generic mailbox message said they had heavy call volumes and to try calling tomorrow.  Round and round we go.

I have everything in TurboTax including the PDF forms showing all of the information.  How can Intuit help?  What do I do now?  Who can I call, because the number listed in the IRS notification letter was not helpful.

[jennyebean]

@jez7  So what I ended up doing is finding our local-ish IRS office and going online/calling to set up an "in person" meeting. When I called the # for it, just to make an appt, it put me on the phone with someone and she ended up fixing my issue with this exact same thing - I got a letter about my kids and their ss#'s etc - and she was able to rectify it all over the phone with/for me. 

So maybe attempt that avenue - even if you actually have to set up an appt to see someone with a local-ish IRS office- they should be able to help. Obviously more than TurboTax is able to do, even tho we paid for them to help us and to ensure everything is correct................

[M2gille]

The guarantee is BS. It only covers the $4 in penalties… not the $800 in unexpected tax hit, or the time and frustration dealing with this problem that you caused. And it requires additional time and energy on my end to justify the issue. Your software made a logical error that is impacting thousands of your customers. You are clearly aware of the issue, yet you make no attempt to alert us of the error or aid in the resolution. This is terrible service. 

[Licamper2021]

I got the same letter the IRS decreased my return. How do we change our taxes so we don't have issues with 2021 taxes?  I don't want turbo tax to carry over the incorrect refund number for next year.

[jemanson]

I received notice from the IRS that "the amount was computed incorrectly". Turbotax did the computing. I now have only received half of the amount that TurboTax computed due to the IRS correction. Why has this happened?

[VolvoGirl]

Did you receive the full amount for both the first 2 Stimulus payments?  Better check your 1040 line 30 and see if an amount is listed.  That's been a common problem.  You might have answered the Stimulus questions wrong and tried to claim  it again or some more on line 30.  So the IRS took it off because you already got it.  They know they sent it to you.

If you claimed a missing stimulus payment on your return but the IRS took it off you have to ask the IRS. They think they already sent it to you. Maybe it went to an account you don't remember. Or you got a check or a card. It was probably easy to miss the debit card in the mail and think it was junk mail. They have to put a trace on it.

How to put a trace on a missing 1st or 2nd Stimulus payment.  IRS for Payment Issued but Lost, Stolen, Destroyed or Not Received

See question F3 here, you can expand it to see how to put a trace on it.

https://www.irs.gov/newsroom/2020-recovery-rebate-credit-topic-f-finding-the-first-and-second-econom...

[jemanson]

Did not receive all of the payments, that is why it was on the taxes. (they are my in-laws taxes, unfortunately my mother-in-law has passed away since then)Thanks for the link to trace payments. I guess that is what is next

[VolvoGirl]

Sorry for your loss.  I'm in the same situation.  Mother in law died in Oct and father in law just died this July.  Maybe she got a stimulus check and didn't cash it?  Or got a Direct Deposit?  I assume you checked all the bank accounts?  Oh, one of them came on a debit card.  That was tricky to get cashed at the bank.  I had to go online at the govt and activate it first.  

[Kristinelj]

I also entered information correctly and the IRS “corrected” my refund by taking $622.