I received a notice from the IRS stating they had changed my 2020 tax return in the area of the Recovery Rebate Credit. The notice did not specifically state a reason for the change, but instead stated the "error" was in one or more of the following areas:
Please don't suggest that I contact the IRS and discuss - I have been trying for two days continuously and equally, I have received a recording each time that all agents are busy and that I should call back the next day. There isn't even an option to stay on the line for the next available agent. On the CP-11, the only course of action for disagreeing with the recalculation of the credit is to call the IRS (see previous sentence). What is TT and Intuit going to do to substantiate FOR ME that the computation is correct? Thanks.
Seems I solved my own problem. Here is what I found by wandering around the internet. This is only applicable when it appears the amount of EIP has been incorrectly reported on the Rebate Recovery Worksheet and the filer is Married Filing Jointly. If you are having this problem (and filing MJF) do this:
Log into your own IRS website and look at your records. The path is "Account Home > Tax Records". Right there, you will find the following heading and associated information (read it carefully, I have provided the bold highlighting for you):
2020 Economic Impact Payment Information
Use these amounts to calculate any Recovery Rebate Credit on your Tax Year 2020 return.
If you file as Married Filing Jointly, each spouse should see their own amount within their own account. All amounts must be considered if filing jointly in 2020.
<END IRS WEBSITE INFO>
After you look at your own account, then have your the other half of your "jointness" log into their IRS account and view the same information.
When the return is a MFJ, each of the "joints" needs to login to their own IRS account and to determine the amount paid. Equally, each of the "joints", if needed, should verify the amount was actually deposited into their bank account (or accounts). I think if you pull the string far enough, you will find the total amount paid to the "joints" is equally divided and reported between the two accounts and is therefore accurate (for MFJ). This is the exact case for me and my "joint". Also, this may be why there appears to be a strange and consistent anomaly in the complaints (lots of them on the internet about this issue whether it was from Lacerte, TurboTax, TaxSlayer, or any other program), that the IRS was "taking back" exactly 1/2 of the credit.
Kinda sad that TT hadn't already figured this out...sigh....
Ok ... so when the program asked you how much you AND your spouse got in the first 2 stimulus payments did you enter the total you got ? If so then the program computed the credit based on your input alone. If you did not enter the amount asked for by the program then the IRS will make the correction automatically.
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.
Thanks for your clear contribution and guidance. Hopefully TT will do better in the future...
This happened to me. I received a refund amount of $1400 less than what turbo tax stated my total refund was. I filed as an independent, I am not claimed on anyones taxes and have no dependents of my own. So the first four errors are irrelevant to me. The only remotely applicable error is “the amount was computed incorrectly”, in which case turbo tax guarantees 100% calculation guarantee. I qualify to receive the stimulus from March of 2021, I did not receive it at the time so I claimed it on my taxes. But now the IRS changed my tax refund and I got much less than expected and when I call I get the same “call back another day” prompt. What can I do? I’m a poor college student living on my own and I needed that money to pay for car repairs and other expenses. I am eligible for the refund but the IRS doesn’t think so… what can I do to fix this??
This is not an issue with accuracy or TurboTax. The IRS records are indicating you already received the Third Stimulus Payment. So the IRS then adjusts your refund and removes that extra $1,400 on your return.
Take a look at your bank statements going all the way to March of 2021. Many people find that they did actually receive it, but they forgot about it or just never noticed it.
If you find you absolutely did not receive the payment, you can call the IRS at 800-829-1040 to find out where they sent it. They are the only ones that can tell you why they took it away if you did not get it before.
I think the computation was done incorrectly by TURBO TAX what do I reply to them?
Them who ? If you mean the IRS who corrected your return there is nothing to fix... they don't care who made the error.
Now if you mean TT ... you can put in an accuracy guarantee claim :
Any calculation errors on the part of TurboTax are covered under the Accurate Calculation Guarantee. TurboTax will pay any penalties and/or interest due to a calculation error but not any taxes owed. The Guarantee does not cover any user entry errors or omissions.
See this TurboTax support FAQ for the 100% Accurate Calculation Guarantee - https://ttlc.intuit.com/questions/2566201-what-is-the-turbotax-100-accurate-calculation-guarantee
See this TurboTax support FAQ for submitting a claim - https://ttlc.intuit.com/questions/1901269-how-do-i-submit-a-claim-under-the-turbotax-100-accurate-ca...
See this TurboTax support FAQ for documents needed to submit a claim - https://ttlc.intuit.com/questions/1901060-what-documents-do-i-need-to-submit-a-claim-under-the-turbo...
@maxine3 what specifically was computed incorrectly? can you post details?
@maxine3 - more detail please
1) how much did you receive for the 3rd stimulus in March - May, 2021
2) what is on Line 30 for Form 1040?
3) how many people are listed on your 2021 tax return (you, spouse, children)?
You needed to enter the total amount you received for the 3rd Stimulus payment. Line 30 is only if you didn't get the full amount or qualify for more.
Did you see these screens when you filled out your return? See Critter's screen shots
@VolvoGirl unfortuantely, it's a little more complicated than 'you need enter the total amount you recieved'
it's "you need to enter the total amount YOU and YOUR SPOUSE received as if you filed joint, the IRS sent out two letters confirming how much you received and you need to ADD BOTH LETTERS TOGETHER'
🤓
I am having the exact same issue and I reviewed our one and only checking account and there was no payment other than the 1400.00! And these phone lines are not being answered because they have such high call volume and then hang up on you. Just GReaT!!!
My wife and I, after filing jointly, received an IRS CP11 stating that IRS found an error on our 1040 related to Recovery Rebate Credit. We had followed TurboTax instructions entirely, input all monies received from stimulus checks, and the TurboTax program asked if we wanted a recovery credit. Well, of course we do, we replied, as long as we're entitled to it. Turns out, according to the IRS, we weren't entitled to it, we are now being charged an additional $1011, including interest, and all calls to IRS have been impossible. I believe it's because our AGI exceeds the federal limit (by process of elimination - the IRS provides 5 possible reasons but neglects to give you the exact reason). Multiple calls to TurboTax have been frustrating and not helpful (TurboTax just said, sorry, you can request a refund of the product bought -Premier - goodbye) and we're unlikely to use TurboTax again because of this, despite using TT for about 12 years previous. Anybody else run into this? Any successes in resolving it??
@ritadelight - it's unlikely your AGI is the issue - that would have been automatically calculated by TT and then the IRS would have used the same calculation - so there would be no difference.
But let's review your situation. The calcuation for Line 30 of your form 1040 is quite simple:
1) the Number of people listed on your 2021 tax return
2) times $1400
3) less what you received for the Stimulus
4) equals Line 30, but not less than zero
(it's a little more complicated if your AGI exceeds $150,000 but we can come back to that later if necessary, but unlikely to be the issue)
for 3) how much did you receive? DO NOT RESPOND FROM MEMORY...
either look at your bank statements from March - May, 2021
or look at Letter 6475 that the IRS sent to you. What I see over and over on these boards is that couples that filed jointly did not realize that the TWO letters sent to you (one to each spouse) had to be added together to answer TT's question, 'how much stimulus did you already receive'.
The difference between what you actually received (after reviewing your bank statement) and what you originally entered into TT is probably the amount the IRS adjusted.
if that is hard to follow, please post the following and I will explain
1) what is on Line 30 of Form 1040
2) how many people were listed on your 2021 tax return
3) how much did you receive in stimulus last year (again, look at your bank statements - no guessing, please)
4) how much did the IRS adjust your refund / amount you owe by?
TurboTax entered $2800 on Recovery Rebate Worksheet when I clearly entered no dependents and the worksheet should not have been completed until as per directions. At no point did I request a rebate. I’m still trying to get a human at IRS. WHAT TurboTax do for me.
Ok ... the credit was worth $1400 for you and $1400 for your spouse thus $2800. The program told you that you were eligible for the credit then asked you how much you got in advance in the third stimulus credit so if you entered zero the program gave you the full credit you were due. So when the IRS checked their records they believe you already got the advance so they removed the credit from your return and either reduced your refund or increased your balance due.
NOW ... if you have checked your records and you really did NOT get the advance stimulus payment then all you can do is have a trace put on the missing money...
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.
Updated IRS FAQ about recovery rebate credit
https://www.irs.gov/pub/taxpros/fs-2022-27.pdf
there is really no reason to call the IRS. IF there is an error on Line 30, they will find it and make the adjustment.
Line 30 is simply: $1400 times the number of people listed on your tax return LESS what you stated you already received from the 3rd stimulus last March - May, 2021.
the number of dependents has nothing to do with what is on Line 30...... it's the number of people listed on the tax return - period.
So should I reply to them and forward this information?
@maxine3 - who is the 'them' you are refering to and what information are you refering to????
if you are referring back to your May 11th post, you haven't posted any information that would indicate that Turbo Tax calculations were incorrect. Most likely, the amount you entered as having received for the 3rd stimulus was incorrect.
1) what was on Line 30?
2) how many peole are listed on your tax return?
3) By how much did the IRS adjust your tax return?