Received a CP11 from the IRS based on the Refundable Child Tax Credit (Panic is setting in)

[jgFA5Si]

I've been doing my own taxes since 2006 and not once have I had an issue. I've always used TurboTax too. 

My wife and I filed mid-March and noticed it was taking longer than normal to get our return (right around $700). I get the mail today with a notice from the IRS stating that they made a change to my return based on the Refundable Child Tax Credit. We now OWE $2,241!! 

Under the payments and credits section, specifically under "Other credit, Form 1040 lines 27a, 28-30, SCH 3 lines 9, 11, 12, 14" they show my credit as $3,000. Correct me if I'm wrong but isn't the child tax credit $3,000/child. I have two between ages 6 and 17. These are the values that TurboTax automatically entered when the info I enter in for my children has us qualify for the tax credit.

What am I missing here? We received the advanced Child Tax Credit. Is that what's happening here??

[DoninGA · Accepted solution]

Did you receive the advance child tax credit in 2021 for both children for the months of July thru December 2021?  If so, that amount would have been $1,500 for each child if you received six months of credit for each child.

If you indicated that you did not receive the advance credit and the IRS has records showing that you received the credits, then the IRS removed $3,000 from child tax credit reported on Line 28 of your Form 1040.

[jgFA5Si]

We did receive that money for each child. So they raised the credit from $2000/child to $3000/child (the age of my children), sent out half of that money as an "advance", and then lost the $1,500 per child of credit?

If that's the case I really wish I would've know more about this. 

[DoninGA]

Yes, when they sent out the advance credit that reduced the amount of credit you could claim on the 2021 tax return.

[jgFA5Si]

Why would have the TurboTax software put the $3k per child. I believe I remember the software asking me if I received the advance and of course I said "yes". I could be wrong about it asking though. My memory isn't the greatest.

[rjs]

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@jgFA5Si wrote:

We did receive that money for each child. So they raised the credit from $2000/child to $3000/child (the age of my children), sent out half of that money as an "advance", and then lost the $1,500 per child of credit?

If that's the case I really wish I would've know more about this. 

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Yes, that's right. But you didn't lose the $1,500 per child. You got it in advance instead of having to wait to get it when you filed your tax return. You and your wife each got a Letter 6419 from the IRS showing the amount of advance payments that each of you received, and telling you that you have to enter it on your tax return. TurboTax asked you how much you received in advance payments. If you had entered the amount that you received when TurboTax asked, your tax return would have been correct and the IRS would not have changed it.

[jgFA5Si]

I'm fairly confident I did enter that correctly, thus my confusion now. Where can I find that in my return?

[DoninGA]

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@jgFA5Si wrote:

I'm fairly confident I did enter that correctly, thus my confusion now. Where can I find that in my return?

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If you entered the amount of advance child credit payments received in 2021 when asked in the TurboTax program, that amount would have been entered on Schedule 8812, Credits for Qualifying Children and Other Dependents on Line 14f.

If you used the 2021 TurboTax desktop editions installed on a computer, click on Forms.  When in Forms mode on the left side of the screen locate the Schedule 8812 and click to open.

[jgFA5Si]

Welp, I apparently put $0 smh....

[jkillian1]

I received a CP11 saying I owe ~900 based on a miscalculation on schedule 8812, I looked back at it and I did indicate I received 500 in pre- child tax credit so it only gave us a 1500 credit but now IRS is saying we basically don't get that credit. Should I appeal?

[SweetieJean]

See:

IRS revises Tax Year 2021/Filing Season 2022 frequently asked questions for the Child Tax Credit | I...

[Critter-3]

@jkillian1 

You can call the number on the notice and ask them what happened exactly since there are many possibilities as to why this happened.   You can protest the change if you disagree with the notice ... follow the instructions given and be clear, concise and polite in all dealings with the IRS. 

[tentoone]

Should we resubmit our taxes is this is updated or just pay the difference?

[pburch7500]

Turbo Tax says "Your taxes done right, guaranteed" I had the same CP11 notice delivered saying I (Turbo Tax) put in 3,000 but only qualified for 1,500.  Now I owe 37.84 and counting in late charges and interest.  How do I get a refund from Turbo Tax per their guarantee? -

100% Accurate Calculations Guarantee

If you pay an IRS or state penalty or interest because of a TurboTax calculation error, we'll pay you the penalty and interest.

[VolvoGirl]

That's not a calculation error.  You didn't enter the 1500 you already got.  Line 28 should be only the half you didn't get.  Double check your bank account.  I think it was $250 a month for 6 months?