8812 Line 5 Calculation Error!!

Forum|Forum|4 years ago
March 28, 2022
1 reply
16 views

I have 4 kids, 2 under 6. The 8812 worksheet calculates a differnt value than what Turbo Tax entered on form 8812!

Schedule 8812 line 1 and 3 is $126,538. 4a is 4, 4b is 2, 4c is 2. But 5 is an ERROR at $13,200.

The correct number should be $12,000.

Here's why:
The 8812 worksheet says for line

1. 8812 4b x $3600 = $7,200

2. 8812 4c x $3,000 = $6,000

3. (1) + (2) = $13,200

4. 8812 4a x $2,000 = $8,000

5. (3) - (4) = $5,200.
6. Enter an amount (married filing jointly = $12,500). = $12,500.

7. smaller of line 5 or 6 = $5,200

8. Enter amount for filing status ($150,000)

9. Subtract 8 from 3, round up = $24,000

10. Mulitply 9 by .05 = $1,200

11. Enter smaller 7 or 10 = $5,200

12. Subtract line 11 from line 3 (this should be line 5 on sch 8812) = $12,000

Best answer by JohnW152

The Form 8812 computation by the TurboTax program appears to be correct.

Where you’re going wrong is on Line 9 of the Line 5 worksheet in 2021 Instructions for Schedule 8812.

Line 9 says, “Subtract line 8 [of the Line 5 worksheet] from Schedule 8812, line 3.

If line 8 is $150,000, and line 3 of Schedule 8812 is $126,538, then line 9 is a negative number, and line 9 says that if zero or less, enter zero.

A zero on line 9 of the worksheet means that line 10 of the worksheet – “Multiply line 9 by 5% (0.05)” – is zero.

That makes line 11 of the worksheet – “Enter the smaller of line 7 or line 10” – zero, and line 12, which is carried over to line 5 of Schedule 8812, $13,200.

JohnW152Answer

Level 15

The Form 8812 computation by the TurboTax program appears to be correct.

Where you’re going wrong is on Line 9 of the Line 5 worksheet in 2021 Instructions for Schedule 8812.

Line 9 says, “Subtract line 8 [of the Line 5 worksheet] from Schedule 8812, line 3.

If line 8 is $150,000, and line 3 of Schedule 8812 is $126,538, then line 9 is a negative number, and line 9 says that if zero or less, enter zero.

A zero on line 9 of the worksheet means that line 10 of the worksheet – “Multiply line 9 by 5% (0.05)” – is zero.

That makes line 11 of the worksheet – “Enter the smaller of line 7 or line 10” – zero, and line 12, which is carried over to line 5 of Schedule 8812, $13,200.

dellender

Level 2

I don't follow. I just told Turbotax I have 2 kids, both under 5 years old. It tells me I'm getting back $2466 in refund, then the IRS tells me something screwed up and I'm only getting $766. I entered the correct info, but it looks like Turbotax messed up something in its software.

DJK4

Level 2

I just received a letter also that I owe $ also. I have a 14 year old and an 18 year old. Just filled out the information in TurboTax and filed like I normally do with TurboTax. Never had any problems before.