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??
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.
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.
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.
Yes, when they sent out the advance credit that reduced the amount of credit you could claim on the 2021 tax return.
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.
@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.
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.
I'm fairly confident I did enter that correctly, thus my confusion now. Where can I find that in my return?
@jgFA5Si wrote:
I'm fairly confident I did enter that correctly, thus my confusion now. Where can I find that in my return?
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.
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?
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.
Should we resubmit our taxes is this is updated or just pay the difference?
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.
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?
@pburch7500 wrote:
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.
Did you receive the advance child tax credits in 2021 that totaled $1,500? If so, you were asked if you received these credits and if you indicated that you did not receive them then the full $3,000 child tax credit was entered on your federal tax return Form 1040 on Line 28. The IRS has records showing that you were sent the advance child tax credits in 2021 so they removed $1,500 of the child tax credit from Line 28. So your Child Tax Credit on the 2021 tax return was $1,500.
You should have received Letter 6149 from the IRS for the amount of the payments sent to you.
Look at your return Schedule 8812 on Line 14f. If Line 14f is blank or 0 you failed to report the advance child tax credit you received in 2021.
Go to this IRS website for your tax account to see if the advance child tax credit payments are entered - https://www.irs.gov/payments/your-online-account
All DIY tax programs guarantee the return will be correctly calculated based off the your data entries. So if you made an entry error that is not the program's fault and many users have entered the incorrect advance CTC amount in the program.
Thanks for the responses. It is what it is. I've been doing my own taxes using Turbo Tax or HR Block since at least 2009 i.e. I am a sophisticated e-filer. I have no way to prove I did not answer the question accurately (which is that I did receive the money). As I re-opened the program now, it did not show the amounts within the questions. So I do owe. Frustrated with the experience and with the fact the Fed Payment did not come out of my account automatically (separate thread). Feels like there is some coding work to which I am the victim but again can't prove it and frankly not worth my time to fight over $37. Spent that already in these emails. Cheers or grunts. Not sure which.
@pburch7500 - look at the 'bright side' - all these input errors in the child tax credit and the Recovery Rebate won't occur on the 2022 tax return (unless Congress passes a new law)
I've read this thread with great interest as I too got a letter. I don't know that this happened to everybody, but in my case, my mistake in the data entry was that I didn't add (in my head) the two amounts together. My wife and I both received a letter, so when TurboTax asked for the amount on the letter, I put in $1000, thinking that it would ask me again for the amount from my wife's letter. It clearly states (but I didn't read) that you should enter the "combined" amount from both letters in that field. So my CP11 said, hey, you shorted this by $1000...which I did. I too had to go check my tax return and see that I only put in $1000 when it should have been $2000. Live and learn. Thought i'd share.
Todd
@RowdyAce - yup, the IRS did not do anyone any favors in sending out two letters - one to each spouse. I do not beleive it was clear that the letters were NOT duplicates, but rather had to be added together. THat is the #1 issue is I see on all these posts - couples filing jointing that did not realize the two letters needed to be added together.
I've been doing my own taxes for over 20 years and have never made a mistake... until now. Just received a CP11 due to a mistake in calculating the Refundable Child Tax Credit.
I never asked for the advance on the Child Tax Credit, and they (Both the IRS and TurboTax) sure as heck didn't make the entries clear enough for me not to make a mistake.
I sure hope the IRS does not choose to do something like this again.
@bobbysf wrote:
I sure hope the IRS does not choose to do something like this again.
The IRS didn't choose to do it. Congress chose to do it.