2020 taxes claimed 4 kids/2021 3. Got stimulus for 4. TBT live said they accounted for and refund was correct. Tax Code 766 4/15 -3,300 846 4/6 $419 Got 419 Getting more?

[LolliLolli]

Federal Refund was supposed to be $3206. They cited We changed the amount claimed as Recovery Rebate Credit on your tax return due to errors in one of the following. ..SSN missing for a child missing (Do they mean in 2021 because I did not claim my oldest this year) Last name wrong. Adjusted Income too much--Not true- Amount computed incorrectly. ....The amounts have been the same on my transcript since 4/3 when I first checked. Did they realize I was supposed to get the 3,300 or did they make a mistake and take too much? Or all is correct and Turbo Tax Live was incorrect when they said although I received a stimulus for 4 kids and they accounted for the overage in my 2021 taxes they were incorrect?

[NCperson]

not sure I am following, but let's simplify this.... 

all that matters is the number of people on your 2021 tax return.  I'll assume that is 5 (3 children under the age of 18 as of 12/31/21 plus 2 spouses).  At $1400 per person that is $7000.

LESS what you received for the 3rd stimulus.

if the result is less than zero, which it could be since you claimed one less child, not to worry, you do not have to return any of the stimulus money. 

1) how much did you receive for the 3rd stimulus last March - May, 2021? Note that you should have received Letter 6475 from the IRS to confirm what they sent you, but if you filed joint, there were TWO letters, once sent to each spouse and the SUM of the two letters is what you were to enter into TT. 

2) what is on Line 30 of Form 1040? 

3) please confirm there were 5 people on your 2021 tax return (2 spouses and 3 children under the age of 18)

post back with the answers to my questions and I can explain what 'went sideways'

[rjs]

To try to keep it simple, on the 2021 tax return that you filed, what is the filing status, and what are the exact amounts on Form 1040 line 11 and line 30?

What was the exact amount of the stimulus payment that you received?

[NCperson]

@rjs - seems like we were both typing at the same time.  On the Recovery Credit and the Advance Child Care credit, the only thing that can be 'wrong' is the amount that the taxpayer received for these benefits in cash does not match the IRS records, i.e. the taxpayer didn't enter the correct number into TT.

All the other components of the calculation are automated within TT so they won't create the error - only entering the incorrect cash received for the benefit can create the error, which causes Line 28 or 30 to be incorrect. 

Further, what I am finding in most of these posts, is that if the filing was "joint", and the taxpayer followed what the Letter 6475 stated, most are not realizing there were TWO letters, with half what was received noted in each letter and the sum of the two letters was the required input into TT.   I think it was easy to think the letters were duplicates as the dollar amounts were the same on each letter and / or the spouse filing out the tax return didn't realize that the other spouse also received a letter.   

[LolliLolli]

1.) We did not have that notice so I went to the irs website and it said Economic Impact Payment 3 $ 4,200, so I put that... I hope

2.) $ 2,800

3.) Yes, there were 5. My spouse and I- 3yr old, 10yr old and 12 yr old. I say that because I believe the 3 yr old received a higher credit. 

@NCperson 

[LolliLolli]

Form 1040 Line 11 $88,516 Line 30 $2,800 Economic Impact Payment 1. $2,200 2. $1,800 3. 4,200

@rjs 

[LolliLolli]

I do have letter 6419 on hand and that says $3,150.00. I specifically remember Turbo Tax saying if you are filing jointly and have 2 letters only put the amount from 1. 

@NCperson 

[NCperson]

@LolliLolli - okay, so we are confusing benefits.  Let's start over.

There were two benefits:

1) EIP/ Stimlus / Recovery Credit - on your 2021 tax return this should be $7000 ($1400 x 5) LESS what you received on Letter 6475.  You state you received $4200 (and you did not get Letter 6475)) so that Line 30 is $2800.  So far so good. 

2) Child Tax Credit - $ 3000 EACH for the two older children and $3600 for the child under 6 or $9600 LESS what you received from Jul- Dec, 2021.  The IRS confirmed what you received on Letter 6419 and you state $3150 is what you received.  But there were TWO letters and you needed to add the two tegether; what you might remember is not what TT (or the IRS requires).  In fact, receiving $6300  (twice $3150) makes sense, because that is 3 children @ $250 per month for 6 months plus one child @ $300 per month for 6 months. 

So Line 28 should have been $9600 LESS $6300 or $3300, but I bet it was $6450.  That difference of $3150 is what the IRS is adjsting your tax return by.

1)can you please check your bank account statesment from last July - Dec, 2021 and see how much you received each month? Was it $1050 per month or $800 per month?????

2)Can you please confirm what is on Line 28? 

[Opus 17]

---

@LolliLolli wrote:

I do have letter 6419 on hand and that says $3,150.00. I specifically remember Turbo Tax saying if you are filing jointly and have 2 letters only put the amount from 1. 

@NCperson 

---

From the wording of your message, it sounds like the problem is with the recovery rebate and not the Advance Child Tax Credit.  For example, if there were 6 people on your 2020 tax return, the total EIP3 would be $8400 ($1400 x 6).  You only reported $4200.   If the IRS recorded that you received $4200 and your spouse received $4200, then you aren't entitled to more.  (You don't have to repay the $1400 for the dependent you didn't claim, but you can't get paid twice for the other dependents.)  

You and your spouse should check your bank accounts and check both your IRS online accounts.

https://www.irs.gov/individuals/get-transcript

If you actually received $8400, that's what you should have entered in Turbotax, and you would not have claimed an additional $2800 (that you aren't entitled to).  If you only recieved $4200 but the IRS thinks they sent $4200 to each spouse, then you have to put a trace on the missing payment.  You can't get a missing payment on your tax return. 

Details:

1. The stimulus was $1400 per person (taxpayer or dependent).  That's what is on letter 6475.   EIP 1 and 2 are completely irrelevant here, ignore them.  If you received $4200 as EIP3 (the stimulus check) but you have 5 people on your 2021 tax return (taxpayer, spouse, 3 dependents) you are entitled to an additional $2800.  That seems to be what you claimed on your tax return on line 30.   However, did you actually receive more than $4200?  This would be the round 3 payments that were dispensed mostly in February through April 2022.  You and your spouse should each check your IRS online account.  If you received more than $4200 combined, but only reported $4200, that will trigger an adjustment.

Check each of your separate online accounts. 

2. The Advance Child Tax Credit is separate.   The child tax credit for 2021 was $3000 per child, or $3600 for a child under age 6.  Parents were supposed to get $250 or $300 per month per child starting in July, although not everyone got the full amount.  That's letter 6419.   If your letter says $3150 and you claim 2 child dependents, one of who is under age 6, you would be entitled to a further $3450.  That credit is calculated on form 8812, and is listed on line 19 of your form 1040 (or it may be split between line 19 and line 28).

[rjs]

@LolliLolli 

Where did you see the IRS statement about changing the Recovery Rebate Credit? Is that on the IRS web site, or did you get a notice in the mail from the IRS? If you got a notice, does the notice mention any other errors, changes, or corrections in your tax return besides the Recovery Rebate Credit?

[Opus 17]

@rjs 

The quoted language sounds like the standard IRS letter. Unfortunately, from the complaints reported here, it seems like the IRS lists the same boilerplate reasons regardless of why the credit was actually adjusted, so it is not very helpful for the taxpayer.

[rjs]

@Opus 17 

@NCperson 

Going back to the original question, the numbers don't quite add up. OP said the refund shown on the tax return was $3,206, and they received $419. That's a reduction of $2,787, not $2,800. That's why I asked if the IRS notice made any other adjustments besides the Recovery Rebate Credit. Form 1040 line 30 was $2,800. Most of the users who have complained said their refund was reduced by exactly $1,400 or $2,800, or another multiple of $1,400. I'm looking for something that would explain the $13 discrepancy. It makes me think there's something else going on that has not yet been identified.

[Opus 17]

---

@rjs wrote:

@Opus 17 

@NCperson 

Going back to the original question, the numbers don't quite add up. OP said the refund shown on the tax return was $3,206, and they received $419. That's a reduction of $2,787, not $2,800. That's why I asked if the IRS notice made any other adjustments besides the Recovery Rebate Credit. Form 1040 line 30 was $2,800. Most of the users who have complained said their refund was reduced by exactly $1,400 or $2,800, or another multiple of $1,400. I'm looking for something that would explain the $13 discrepancy. It makes me think there's something else going on that has not yet been identified.

---

I was thinking the $13 could be interest, but it seems too much on a $419 refund.  The taxpayer may be able to see all the adjustments on their account transcript, even though the letter only describes the recovery rebate adjustment. 

My overall guess is that the taxpayer and spouse are each credited with $4200, but they only entered $4200 on the tax return instead of the correct $8400.  Whether they should actually have been credited with $4200 each would be a matter to work out separately, but can't be fixed on the tax return. 

[LolliLolli]

@NCperson 

1)can you please check your bank account statement from last July - Dec, 2021 and see how much you received each month? Was it $1050 per month or $800 per month?????

We received $1,050 each month from July-December 

2)Can you please confirm what is on Line 28? 

3,300

[LolliLolli]

@Opus 17 We share a bank account and that is the only routing/account # used for our returns the past few years. 

1. The stimulus was $1400 per person (taxpayer or dependent).  That's what is on letter 6475.   EIP 1 and 2 are completely irrelevant here, ignore them.  If you received $4200 as EIP3 (the stimulus check) but you have 5 people on your 2021 tax return (taxpayer, spouse, 3 dependents) you are entitled to an additional $2800.  That seems to be what you claimed on your tax return on line 30.   However, did you actually receive more than $4200?  This would be the round 3 payments that were dispensed mostly in February through April 2022.  You and your spouse should each check your IRS online account.  If you received more than $4200 combined, but only reported $4200, that will trigger an adjustment.

*Me, hubby, and the bank checked. The only payment we got from the IRS in 2022 was on IRS 310 Tax refund on 4/5 $419 and our State Refund on 3/25

*Our Record of Account transcripts  both say the same thing 

Code (150) 4/11/22 $8,301 (806) 4/15/22 -5,420 (766) 4/15/22 -3,300 (846) 4/6/22 $419 (971)(570)(571) are blank.

2. The Advance Child Tax Credit is separate.   The child tax credit for 2021 was $3000 per child, or $3600 for a child under age 6.  Parents were supposed to get $250 or $300 per month per child starting in July, although not everyone got the full amount.  That's letter 6419.   If your letter says $3150 and you claim 2 child dependents, one of who is under age 6, you would be entitled to a further $3450.  That credit is calculated on form 8812, and is listed on line 19 of your form 1040 (or it may be split between line 19 and line 28

Form 8812 (Form 1040)2021  from line 15-40 is blank on my turbo tax return but on the Tax Return Transcript it says (I think this is the info you need..not sure)

SCHEDULE 8812 TOT SS/MEDICARE WITHHELD:..................................$0.00
SCHEDULE 8812 ADDITIONAL CHILD TAX CREDIT:...........................$3,300.00
SCHEDULE 8812 ADDITIONAL CHILD TAX CREDIT PER COMPUTER:..............$3,300.00
SCHEDULE 8812 ADDITIONAL CHILD TAX CREDIT VERIFIED:......................$0.00