TurboTax is messing up the advance child tax credit 2021

[RCJ]

I received more info from the ITS than I did from TT. It’s a headache but I would plan a weekday to call the IRS and wait it out to speak to someone. 

[xmasbaby0]

@RCJ Your tax return ---or your refund---was changed by the IRS.   The IRS does not give any information at all to TurboTax when they change something on your return, so you cannot expect TurboTax to tell you anything about it or notify you.   After you file your tax return, only the IRS is in control.  If you made a mistake when you entered information for the child tax credit it does delay your refund.  Sorry.   You can continue to watch the IRS refund site for information.

You need your filing status, your Social Security number and the exact amount  (line 35a of your 2021 Form 1040) of your federal refund to track your Federal refund:   

https://www.irs.gov/refunds

[Adfiameg]

"The Child Tax Credit now goes on line 28 instead of 19. You get the remaining amount there.  Which is better since you can get more on line 28 than just reducing the amount of tax on line 16 to zero."

I've found this to be the root of the underpayment penalty problem.  The underpayment penalty form, 2210, didn't change in 2021 but the cells it references did.  The first line of 2210 which claims to be taxes after credits. But, it pulls from form 1040 line 22, before the CTC is entered in line 28.  And form 2210 doesn't include the CTC in line 3 "Other payments and refundable credits" even though that is exactly the title of form 1040 line 32.  IRS instructions say to include ADDITIONAL CTC in line 3 but that is not the same thing as the standard CTC.

TL;DR Form 1040 treats the CTC as a payment, but form 2210 doesn't which means the CTC gets left out of form 2210 completely.

Seems to be a tax law problem, not a software bug.

[RCJ]

No mistakes made and I contacted TT to see if they were aware of any issues. They were not. The IRS said it was rejected then accepted. I didn’t ask for any responses from anyone in the community  because I got the answer I needed from the IRS. There’s nothing for me to do but wait and that’s what I’ve done.  I’ll just use another method to file my taxes in the future. 

[LD2022]

thanks, it explains everything.

[fanfare]

@RCJ 

There's no reason to blame TurboTax although you might be happier with another product.

With a child tax credit on your tax return, IRS has to hold your return until Feb15 ; that's the law.

It is not REJECTED, it is HELD.

[Spickren]

I have the same issue. I received a letter back from the IRS stating that I now oh $2000 because of a mistake from the child tax credits. They said I can call a phone number to the IRS, which I tried 15 times for them to tell me that they are too busy to take my phone call. Apparently the only way to fix us is to write a letter. But what can I get from TurboTax to fix the issue, correct my taxes, and send the updated to the IRS before June? Anyone else having these issues? Super frustrating. TurboTax also did not ask about Covid this year.

[xmasbaby0]

@Spickren You were supposed to enter the amount of advance child tax credit payments that you received between July and December into the software.   If you failed to enter that information or entered it incorrectly, then the IRS looks for such errors and corrects them---often by having to reduce your refund.

And you were also supposed to go to the Federal Review section to enter your information  regarding the 3rd EIP payment you received for the recovery rebate credit.  Did you go to that section or did you skip it?  If you skipped it and ended up with an amount on line 30 of your Form 1040, that would also lead to the IRS having to change your refund.

Before you spend more time trying to call the IRS, check your online IRS account.  Look to see how much the IRS says you received for the advance child tax credit payments.   Only the "other half" of the CTC should have been on line 28 of your Form 1040.   If you had more than that, you made an error.

And look at line 30----is there an amount there?   Did you actually receive the $1400 per person stimulus checks?   

https://www.irs.gov/payments/your-online-account

And.....TurboTax is not going to intercede with the IRS for you, nor is anyone at TT going to "fix" your return. TurboTax cannot intercede with the IRS for you.     You have to sort it out with the IRS.

If you are having trouble understanding your letter:

I RECEIVED A LETTER FROM THE IRS/STATE

TurboTax does not receive any information from the IRS or your state after your return was filed, so no one at TurboTax knows about a letter you received from the IRS or the state.

(what the letters from the IRS mean)

I GOT A LETTER FROM THE IRS   

https://ttlc.intuit.com/questions/3605673-i-got-a-letter-or-notice-from-the-irs

I AM BEING AUDITED

If you purchased Audit Defense:

https://ttlc.intuit.com/questions/2924451-i-bought-max-or-audit-defense-and-now-i-m-being-audited

AUDIT SUPPORT

TurboTax has a special phone number for help with IRS/state tax letters, which will be easier than going through regular Customer Support.   At the page below, click on the blue button that says "Get Help from TurboTax Support".  Then it will ask you what tax year is your letter.  Then it will ask you what the letter concerns. Then it will show you the phone number during posted business hours.

https://support.turbotax.intuit.com/irs-notice/audit-support/

[VolvoGirl]

@Spickren  For COVID do you mean the 3rd Stimulus payment?  If Turbo Tax didn't ask you how much you got that means you either:

1. Filed as a dependent being claimed on another tax return, or 
2. have an AGI too high to claim the recovery rebate

Check your 1040 line 30.  Line 30 is only if you didn't get the full amount or qualify for more.

[Missmoreton]

Think you were right about something because I just received a critical notice email from turbo tax saying to check my credit for Colorado child care expense credit.