Does TurboTax resolve its own incorrect tax refund calculations that are rejected by the IRS without explanation?

[yomama-spants]

TurboTax Self-Employed calculated a refund estimate that was $1800 more than what the IRS refunded me, but the only explanation the IRS provided was that my tax service provider was incorrect. TurboTax and the IRS both still insist that each of them is right. I just want to know what the accurate numbers are and how to acquire them, and how to receive the rest of my refund.

[Bsch4477]

We can’t see your return. Ask the IRS to explain the discrepancy. 

[fanfare]

since you got a refund, there is no penalty or interest, so there is nothing for TurboTax to do for you.

[VolvoGirl]

What year?  1800 sounds like the first and second Stimulus payments (1200+600).  Did you have 1800 on 1040 line 30 for the Recovery Rebate Credit?   The IRS took it off because they had already sent it to you.  Line 30 is only if you didn't get the full amount or qualify for more. 

EIP1 The first Stimulus payment was 1,200 for each spouse and 500 for each dependent under 17.  Came out in spring of 2020.

EIP2 The second Stimulus was 600 per person and dependents under 17. The 2nd stimulus checks started going out at the very end of December 2020 and continued into January/Feb 2021.

The first 2 Stimulus payments went on your 2020 return even if you got the second one in Jan/Feb 2021.

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

Your Online Account | Internal Revenue Service

[xmasbaby0]

Was it for 2021?   $1800 could also be a mistake made with the child tax credit.   If you did not enter six months of advance child tax credit payments that you received between July and December of 2021, you would have had too much on line 28 and the IRS would have caught the mistake and reduced your refund.

 If you received monthly child tax credit payments of $250 or $300 per month between July and December of 2021, then you got letter 6419 from the IRS, and you were required to enter the amount of the advance payments.   Only the remaining amount of the CTC should have been on line 28 of your Form 1040.

The IRS knows how much they sent to you for the 3rd stimulus check and they know how much they sent for advance child tax credit payments.   If you answered something incorrectly on your tax return then the IRS made a correction that resulted in a reduced refund for you. 

The IRS will send you a letter that explains why your refund was reduced or why you owe more.   Meanwhile it might help you to check your online IRS account.  If you filed a joint return, check for both spouses.

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

[yomama-spants]

I did already, however they just told me to go back to TurboTax! I am stuck in a loop haha!

[xmasbaby0]

@yomama-spants You did not answer our question regarding what tax year this is for.   If it was for 2021, I will bet my hat that you had a mistake with either the child tax credit on line 28 or the recovery rebate credit on line 30.   Tons of people made mistakes with those credits.  The IRS caught those mistakes and reduced their refunds.   Re-read the letter from the IRS that said the refund was reduced.  It did not say "TurboTax messed up--go back to TurboTax."   It more likely gave you a generic list of possible reasons for the reduced refund.   If one of them was "calculation error"----the IRS uses that very generically to refer to all kinds of mistakes on tax returns.

[xmasbaby0]

@yomama-spants You say that you checked your IRS online account.   Did you then compare the amounts shown there to the amounts of money that were deposited to your bank account during that year?   Look for deposits for the stimulus checks and for the advance child tax credit payments that were issued from July to December of 2021.   If you got six payments of $300/month for those six months --- but did not enter it on your tax return--there's the $1800 reduction.

[yomama-spants]

The tax year I am asking about that has the discrepancy is 2022, which I filed on extension in October 2023. (I already received all my stimulus checks as normal in 2021)

[xmasbaby0]

So the IRS reduced your 2022 refund?   Only the IRS knows why they reduced your refund.   TurboTax receives no information from the IRS after you file your return.   Contact the IRS to seek answers.

To call the IRS:IRS:  800-829-1040  hours 7 AM - 7 PM local time Mon-Fri

Listen to each menu before making the selection.

First choose your language. Press 1 for English.

Then do NOT choose the first choice re: "Refund", or it will send you to an automated phone line.

Instead, press 2 for "personal income tax".

Then press 1 for "form, tax history, or payment".  

Then press 3 "for all other questions."

Then press 2 "for all other questions."  It should then transfer you to an agent.