Schedule 8812 Line 5 Worksheet

[cfujii45]

Found out the hard way as well. Got a notice from the IRS on this.    

TurboTax, please be better prepared next year. 

[ckjowers]

I have received an CP11 from the IRS indicating I owe because of an incorrect calculation of child tax credits.  Turbotax did not provide the Line 5 worksheet to correctly calculate the 8812 and due this, I'm now told I owe in $3009 in tax and penalties.  What is my recourse for this Turbotax mistake/shortcoming?  

[toonetown]

I filed the form at https://ttlc.intuit.com/community/charges-and-fees/help/how-do-i-submit-a-claim-under-the-turbotax-1... and uploaded the notice from the IRS.  Turbo Tax will cover the fees and interest due to an error like this, but they won't cover the difference in tax.  (It kind of sucks...but I understand that policy).

Even though my interest was only $2.93, I still filed the form - because Turbo Tax needs to know that they messed up here...it's not about the money - but hopefully, it causes enough work on their end to "make it right" that they'll be careful in future releases.

[ckjowers]

Thanks for the reply - I was worried about that.  So, I've filed a claim as well but you're saying I'll get the penalty reimbursed - $192 vs. the full $3,000?  Really frustrating and painful - especially because it took me less than 5 minutes to complete the Line 5 form manually but after the fact.  

[Arizax4]

Me too.  Ours was $1500

[KarenCPA]

Yup, just got a notice today as well!  As did a family member who also used TurboTax.  Ridiculous!!

[NCperson]

@KarenCPA - the error everyone appears to be making on these board is that the amount entered when prompted by TT for the Advance Child Tax credit does not match the IRS records.  Taxpauers are entering a number than is LESS THAN what the IRS has in its records, which has the effect of inflating refunds.

That difference is reduced by the IRS which has the effect of reducing the refund to the correct number.

please review Line 28 of your tax return which is calculated as follows:

1) $3600 for each child under 6 PLUS

2) $3000 for each child ages 6-17

3) LESS the amount received from the IRS from July - December, 2021.  How much did you receive? do not do this from memory - find the documenation! 

1) and 2) are automatically calculated by TT based on your dependents and the birthdates entered

3) is a manual input.  Refer to Letter 6419 (and if you are filing joint there were TWO letters that needed to be added together)  Or review your bank account records from July - Dec, 2021 (the 15th of each month).  THis is where many made the mistake of not accurately entering what they actually received  

does that help?

[mgold1313]

I just had this same thing happen! When filing in April I was told turbo tax would fill out the "line 5 worksheet" to have me get my other half($1800) of the child tax credit.  When calling back today, they said there is no extra form that turbo tax fills out for someones taxes. There was no form generated to fill this in and now A LOT of people are out the second half(or entire) amount of their child tax credit. Also when I called I was told no one else was having this same issue with their taxes....

[NCperson]

@mgold1313 - go back to the interview questions in TT related to the Advance Child Tax Credit.  TT asks how much you had already received and referenced Letter 6419. 

Based on your response to what you had already received, TT is able to calculate the CHild Tax Credit. 

Look on Line 28 of form 1040.... what is there?  

it should be $3600 times the number of children under 6 PLUS $3000 times the number of children 6-17 years old LESS what you told TT you already received. 

if you entered a number you already received that was less than the IRS knows it sent you, the IRS adjusted your tax return for the difference, so that your tax return matched the IRS records.  The result was a lower refund / more tax owed.

Check your bank statements for July - Dec, 2021 to review what you actually received.  The direct deposits occured right around the 15th of each month.

does that help? 

[srivastava76]

I have also received a Notice from IRS to pay tax because of Line5 miscalculation by Turbotax ! Never expected this from TurboTax!!!

[gcm-3]

Add me to the list of TurboTax users getting an IRS letter saying I owe because of the Line 5 Worksheet issue. 

Has this even been fixed in an update? 

[NCperson]

@gcm-3 - there is nothing to fix! it's a function of users not entering the correct information,

Please review

1) how much money did the IRS deposit into your bank account from July - Dec, 2021.  (please review your bank account records - do not go from memory)

2) TT asked during the interview process how much you received, your answer is on Line 14f of Form 8812,

if these two numbers do not match, the IRS adjusted your refund by the difference!!

[gcm-3]

Can I see this info on the Line 5 Worksheet? How do I access this worksheet?

Thanks

[NCperson]

@gcm-3 - I do not believe TT makes that available to you....but you can work through it yourself.  TT and the IRS would have come to the same conclusion on this sheet, so it's not going to explain why the IRS made an adjustment.  the issue for the adjustment is ALWAYS what was entered into TT as the amount received does not match what the IRS records show they sent!  

see page 4 of this link:

https://www.irs.gov/pub/irs-pdf/i1040s8.pdf

[toonetown]

All the other worksheets are available…I think it is a bug in TurboTax that this one isn’t there.