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

[Kamcginty]

The question was not asked correctly. It asks if you received it and how much was it? So that is how Turbo was the culprit

[NCperson]

@Kamcginty - so can we get beyond the emotion and figure out what went sideways?  

The issue is Line 30 of Form 1040..   The way the IRS designed the form (not TT) is that missing RRC was considered a payment and therefore a reduction in the tax owed (or increase in the refund). 

The question that TT asked (download edition) was "Based on the tax info you entered and your gross income of $XXX, you're eligible for a third stimulus of $YYYYY.  Does this match the amount of your Letter 6475?" 

 Then you were to respond 'yes' or 'no'.. 

if you answered 'yes', then Line 30 is zero. 

if you answered 'no', TT then asked how much you received.  If less than $YYYY, then the difference ends up on Line 30  if greater than $YYYY, then Line 30 is zero. 

Based on your tax return and the records the IRS has of how much they sent to whom, they can calculate how much should be on Line 30.  If it matches, GREAT.  But if it doesn't, that is where these snafu's occur.

does that make sense? 

there are press releases from the IRS that the two biggest errors made relate to the RRC and Child tax credits.  Almost 90% of the errors relate to these two issues - and it both cases it required the taxpayer to enter the amount of money they received from the IRS during 2021- and if it doesn't match the IRS records, that is where the error and the emotion comes into play.

https://www.taxpayeradvocate.irs.gov/news/nta-blog-math-error-notices-what-you-need-to-know-and-what...

[NCperson]

@Kamcginty 

<<It asks if you received it and how much was it? So that is how Turbo was the culprit>>

I agree with you - those were the questions asked, and if you answered them and it matched the IRS records, then no worries all is good, but if you answered in a way that does not match the IRS records, then the 'snafu' ocurrs. 

[R WELLS]

Yes, TurboTax also messed up the line 30 entry for the Recovery Refund Credit.  The specific error was made on line 12 of the credit worksheet.  It specifically states that line 8 should be multiplied by line 11, but the program failed to perform this step and simply entered the line eight amount into line 12.  Line 12 on my recovery worksheet was zero.  If the multiplication had been done as required on the worksheet, it would have clearly indicated that I was not entitled to an additional Recovery Refund Credit.

Now I am sitting here looking at the $1400 (plus penalties and interest) bill from the IRS.  I wonder if TurboTax would acknowledge its obvious error an offer to cover my penalties and interest.  I can’t seem to find anywhere on this site where I can report they made an error and request compensation.

[R WELLS]

Yes, TurboTax also messed up the line 30 entry for the Recovery Refund Credit.  The specific error was made on line 12 of the credit worksheet.  It specifically states that line 8 should be multiplied by line 11, but the program failed to perform this step and simply ensure the line eight amount into line 12.  Line 12 on my recovery worksheet was zero.  If the multiplication had been done as required on the worksheet, it would have clearly indicated that I was not entitled to an additional Recovery Refund Credit.

Now I am sitting here looking at the $1400 (plus penalties and interest) bill from the IRS.  I wonder if TurboTax would acknowledge its obvious error an offer to cover my penalties and interest.  I can’t seem to find anywhere on this site where I can report they made an error and request compensation.

I am a CPA with 35 years of tax preparation experience, but I never knew that I had to check TurboTax for math errors.  If that is the case, I might as well just prepare my own return and not use software.

I am CPA with 35 years tax experience, but .  

[R WELLS]

Yes, TurboTax messed up the line 30 entry for the Recovery Refund Credit.  The specific error was made on line 12 of the credit worksheet.  It specifically states that line 8 should be multiplied by line 11, but the program failed to perform this step and simply ensure the line eight amount into line 12.  Line 12 on my recovery worksheet was zero.  If the multiplication had been done as required on the worksheet, it would have clearly indicated that I was not entitled to an additional Recovery Refund Credit.

Now I am sitting here looking at the $1400 (plus penalties and interest) bill from the IRS.  I wonder if TurboTax would acknowledge its obvious error an offer to cover my penalties and interest.  I can’t seem to find anywhere on this site where I can report they made an error and request compensation.

 I am a CPA with 35 years of tax preparation experience, but I never knew that I had to check TurboTax for math errors.  If that is the case, I might as well just prepare my own return and not use software.

[R WELLS]

Yes, TurboTax also messed up the line 30 entry for the Recovery Refund Credit.  The specific error was made on line 12 of the credit worksheet.  It specifically states that line 8 should be multiplied by line 11, but the program failed to perform this step and simply ensure the line eight amount into line 12.  Line 12 on my recovery worksheet was zero.  If the multiplication had been done as required on the worksheet, it would have clearly indicated that I was not entitled to an additional Recovery Refund Credit.

Now I am sitting here looking at the $1400 (plus penalties and interest) bill from the IRS.  I wonder if TurboTax would acknowledge its obvious error an offer to cover my penalties and interest.  I can’t seem to find anywhere on this site where I can report they made an error and request compensation. 

I am a CPA with 35 years of tax preparation experience, but I never knew that I had to check TurboTax for math errors.  If that is the case, I might as well just prepare my own return and not use software.

[NCperson]

@R WELLS - that isn't how the worksheet is designed

Line 8 is the Recovery Rebate / stimulus you are entitied to

Line 12 reduces Line 8 ONLY if you are subject to the "income phase out"

line 13 is WHAT YOU ALREADY RECEIVED.  probably back in March - May, 2021.  if you did not populate this line correctly, then Line 30 on Form 1040 will be incorrect 

Everything on the worksheet is automatically calculated by TT EXCEPT Line 13 - which you are required to complete. 

does that help?  

[R WELLS]

Yes, TurboTax messed up the line 30 entry for the Recovery Refund Credit.  The specific error was made on line 12 of the credit worksheet.  It specifically states that line 8 should be multiplied by line 11, but the program failed to perform this step and simply ensure the line eight amount into line 12.  Line 12 on my recovery worksheet was zero.  If the multiplication had been done as required on the worksheet, it would have clearly indicated that I was not entitled to an additional Recovery Refund Credit.

Now I am sitting here looking at the $1400 (plus penalties and interest) bill from the IRS.  I wonder if TurboTax would acknowledge its obvious error an offer to cover my penalties and interest.  I can’t seem to find anywhere on this site where I can report they made an error and request compensation.

1.   I am a CPA with 35 years of tax preparation experience, but I never knew that I had to check TurboTax for math errors.  If that is the case, I might as well just prepare my own return and not use software.

[VolvoGirl]

And being a CPA, I'm sure you looked over your return before you filed.  You would have seen the 1400 on line 30 and known you did qualify for it or question why it was there.  Unless you didn't get the 3rd Stimulus payment that came out starting in March 2021.  Line 30 is only if you didn't get the full amount or qualify for more. .

Did you get any IRS letter 6475 telling you how much you got last year?  When you fill out Turbo Tax it starts out by giving you the full amount you qualify for.  Then at the end you enter how much you already got so you don't get it again.   A lot of people forgot they got the deposit last March - May.  Or missed one payment and entered the wrong amount.  Then when the IRS reduces their refund and they check their bank accounts they have been finding the payments.

Double check your bank statements and Check your IRS account (both accounts if married)

Your Online Account | Internal Revenue Service

[NCperson]

@R WELLS - that isn't how the worksheet is designed

Line 8 is the Recovery Rebate / stimulus you are entitied to

Line 12 reduces Line 8 ONLY if you are subject to the "income phase out"

line 13 is WHAT YOU ALREADY RECEIVED.  probably back in March - May, 2021.  if you did not populate this line correctly, then Line 30 on Form 1040 will be incorrect 

Everything on the worksheet is automatically calculated by TT EXCEPT Line 13 - which you are required to complete. 

does that help?  

[R WELLS]

Yes, TurboTax messed up the line 30 entry for the Recovery Refund Credit.  The specific error was made on line 12 of the credit worksheet.  It specifically states that line 8 should be multiplied by line 11, but the program failed to perform this step and simply entered the line eight amount into line 12.  Line 12 on my recovery worksheet was zero.  If the multiplication had been done as required on the worksheet, it would have clearly indicated that I was not entitled to an additional Recovery Refund Credit.

Now I am sitting here looking at the $1400 (plus penalties and interest) bill from the IRS.  I wonder if TurboTax would acknowledge its obvious error an offer to cover my penalties and interest.  I can’t seem to find anywhere on this site where I can report they made an error and request compensation. 

I am a CPA with 35 years of tax preparation experience, but I never knew that I had to check TurboTax for math errors.  If that is the case, I might as well just prepare my own return and not use software.

[R WELLS]

.

There is a clear math error in the way that TurboTax is calculating line 12 of the Recovery Rebate Credit Worksheet.  If you are suggesting I should have known there were math errors in your calculations, that is an unsatisfactory response.  You supposedly guarantee the accuracy of your program.  A program that fails to make necessary math computations is not accurate.  Why aren’t you giving me any information on how I can request redress from TurboTax or is your whole guarantee thing a big lie?

[VolvoGirl]

We don't work for Turbo Tax.  We are just other users like you.  We volunteer here.

100% Calculation Guarantee

https://ttlc.intuit.com/community/charges-and-fees/help/what-is-the-turbotax-100-accurate-calculatio...

How to submit a claim under the 100% Accuracy Guarantee

https://ttlc.intuit.com/questions/1901269-how-do-i-submit-a-claim-under-the-turbotax-100-accurate-ca...

[R WELLS]

Yes, TurboTax messed up the line 30 entry for the Recovery Refund Credit.  The specific error was made on line 12 of the credit worksheet.  It specifically states that line 8 should be multiplied by line 11, but the program failed to perform this step and simply entered the line eight amount into line 12.  Line 12 on my recovery worksheet was zero.  If the multiplication had been done as required on the worksheet, it would have clearly indicated that I was not entitled to an additional Recovery Refund Credit.

Now I am sitting here looking at the $1400 (plus penalties and interest) bill from the IRS.  I wonder if TurboTax would acknowledge its obvious error an offer to cover my penalties and interest.  I can’t seem to find anywhere on this site where I can report they made an error and request compensation.

I am a CPA with 35 years of tax preparation experience, but I never knew that I had to check TurboTax for math errors.  If that is the case, I might as well just prepare my own return and not use software.