Anyone else get screwed over by turbotax messing up line 30?

[galaen]

I got my full stimulus money. Turbotax added $200 onto line 30, indicating I should have received $200 more. The IRS flagged it, since it is incorrect. I now have to wait up to 10 weeks extra for my refund. Anyone else have this same experience?

[ReneeM7122]

The stimulus is an advanced credit.  If you entered the amounts that you received for the first and second stimulus payments, TurboTax factors that information into the calculation that shows what your entire credit is, based on your income and other factors.  If you should have received $200 more than the stimulus that you got according to the calculation, then you received a credit on your tax return.

What is the Recovery Rebate Credit?

The Recovery Rebate Credit is authorized by the Coronavirus Aid, Relief, and Economic Security (CARES) Act and the COVID-related Tax Relief Act. It is a tax credit against your 2020 income tax. Generally, this credit will increase the amount of your tax refund or decrease the amount of the tax you owe.

The Recovery Rebate Credit was eligible to be paid in two rounds of advance payments during 2020 and early 2021. These advanced payments of the Recovery Rebate Credit are referred to as the first and second Economic Impact Payments.

Individuals who received the full amounts of both Economic Impact Payments do not need to complete any information about the Recovery Rebate Credit on their 2020 tax returns. They already received the full amount of the Recovery Rebate Credit as Economic Impact Payments. You received the full amounts of both Economic Impact Payments if:

• Your first Economic Impact Payment was $1,200 ($2,400 if married filing jointly for 2020) plus $500 for each qualifying child you had in 2020; and.
• Your second Economic Impact Payment was $600 ($1,200 if married filing jointly for 2020) plus $600 for each qualifying child you had in 2020.

Who can claim the Recovery Rebate Credit?

Eligible individuals who did not receive the full amounts of both Economic Impact Payments may claim the Recovery Rebate Credit on their 2020 Form 1040 or 1040-SR. To determine whether you are an eligible individual or the amount of your Recovery Rebate Credit, complete the Recovery Rebate Credit Worksheet in the Instructions for Form 1040 and Form 1040-SR.

Generally, you are eligible to claim the Recovery Rebate Credit if you were a U.S. citizen or U.S. resident alien in 2020, cannot be claimed as a dependent of another taxpayer for tax year 2020, and have a Social Security number valid for employment that is issued before the due date of your 2020 tax return (including extensions).

You must file Form 1040 or Form 1040-SR to claim the Recovery Rebate Credit even if you are normally not required to file a tax return. Anyone with income of $72,000 or less can file their Federal tax return electronically for free through the IRS Free File Program. Free File is a public-private partnership between the IRS and many filing and tax preparation software providers who provide their brand-name products for free. The safest and fastest way to get a tax refund is to combine electronic filing with Direct Deposit.

[galaen]

But I did receive the full amount of stimulus that I should have and I entered that in when filing. I am not the only one with this issue. The IRS had to flag my return as having an error, fix the error then finish pushing it through their system. TurboTax is the one that added that I should have received $200 more, therefore causing my refund to take more than the average 21 days. I have talked with the IRS and confirmed this. 

[fanfare]

Always print a copy of your completed tax return for your records, and review it carefully before e-Filing.
You will need it if you are audited by the IRS, or to amend if a TurboTax update changes your return or for any other reason,

AND, to find your AGI next year.
AND, to catch errors such as, incorrect amounts on line 30.

[76665]

Yes we did, was sapose to get 1300 back now only 500, soo pissed off, and only got 500 out of the 2800 if the stimulus money cuz turbo tax screwed up

[fanfare]

Even if TurboTax screwed up (unlikely)

IRS computer are calculating what you are eligible for and adjusting accordingly.

If IRS mailed a check and you did not get it, you may have to start a "Lost check search" with the IRS.

[NCperson]

@76665 - let me see if I can help here

1) what was on Line 30?

2) how much did you receive from the 1st stimulus

3) how much did you receive from the 2nd stimulus

4) are you married? 

5) how many children do you have

be calm. we can figure this out!

[76665]

1640 I was sapose to have 0,  857 1st time 783 2nd  yes married, and claimed my 17yr old, was sapose to get 1290 and now  gettin 513, and since they held my 2020 so long they went off 2019 taxes and only got 573 from stimulus out of 2800 very pissed off 

[NCperson]

@76665 

1) you received $765 the first time (I suspect your income was around $193,000 in 2019)

2) you received $783 the 2nd time 

3) you have a child who is 17 as of Dec 31, 2020.

4) you are married. 

what was your adjusted gross on Line 11 of your tax return? 

please read this slowly and carefully:

Congress and the IRS didn't really fully explain how all this worked, but this is why I suspect you are frustrated.

1) When the stimulus were passed, they were what is called an 'advance of 2020' tax payments.  Obviously, at the time the stimulus payments were issued, the IRS didn't know what your income or dependency situation was for 2020, so they ESTIMATED what you were due based on your 2019 income, marital situation and dependents, They ESTIMATED and send out the stimulus.

2) but everything is ACTUALLY really based on 2020 tax return: your income, your dependents, et .

3) If the ACTUAL is greater than the ESTIMATE, that difference is on Line 30 and is called the "Recovery Credit"

4) if the ESTIMATE is greater than the ACTUAL, then Line 30 is zero and can't be negative, meaning you are not asked to return anything.

Please read steps 1 -4 again calmly and slowly.  You have a lot of moving parts as I suspect your income is over $150,000 and you also have a child that is not eligible for the Recovery Credit because he is 17, even though he was 16 when the stimulus was calculated based on your 2019 income. 

It's important you understand this because no one is screwing you out of anything; this is how Congress passed the law.  

I have taken considerable time to write this all out for you; so please give me the courtesy  of posting back your 2020 income on Line 11 of your tax return and I will show you all the math on what is going on.  

On the 3rd stimulus, the ACTUAL is based on your 2021 income, and the IRS used 2020 (and 2019 if 2020 was not available) to determine the ESTIMATE.  If your income ends up being lower in 2021, you will see that on Line 30 next year.  It is not lost; it is just delayed. 

[76665]

No we did not meet 193,000. We got some money in 2019 so it put us at 154,000. And pd alot of taxes on it, so this year we r back at 91, 000 that's y we didn't get the money!

[76665]

Our line 11 is 90, 154

[NCperson]

and I guess the one thing I didn't ask you is what is on Line 30 ? that is the missing piece for me to figure this out for your.

[76665]

1640

[NCperson]

are you sure that you entered $765 and $783 as the two payments you received?

Based on what you stated, here is how it should work, and remember, everything is based on 2020; what occurred in prior years really doesn't matter

assuming you are married and both have social security numbers,  

• you are eligible for $2400 from the first stimulus
• you are eligible for $1200 from the 2nd stimulus
• your child is not eligible because he was 17 at 12/31/20
• so that is $3600 less what you already received, which is $765 and $783, leaving $2052.
• So I would have expected to see $2,052 on Line 30.  That is why I am asking what you entered as having actually received for the 1st and 2nd payment.  It would appear you entered two numbers that added up to $1960 because $3600 less $1,960 is $1,640.

that is how it works.  Does that make sense to you?  

[Rehiguera]

Yes. Both my life partner and myself both listed we received the full stimulus yet somewhere along the line Turbotax added $600 for missed stimulus. Got a letter from IRS stating our returns were being adjusted for the amount.