Skip to main content
Level 1
November 10, 2022
Question

Last Year's disappointing refund

  • November 10, 2022
  • 2 replies
  • 9 views

I'm not sure I will use TT this year. Last year TT blew our refund with mistakes and instead of $4+k refund we only got $1800. And when I inquired why so little TT Never responded and instead told us to contact IRS which was Totally unavailable and never responded after multiple attempts.

 
Haven't much faith in your service?.. waste of time And Money

    2 replies

    Critter-3
    Level 15
    November 10, 2022

    TT is a DIY program that completes a return based on the user's entries.  If you believe you entered everything correctly and answered all the questions correctly then you can put in an accuracy claim...

     

    Accuracy Guarantee https://ttlc.intuit.com/community/charges-and-fees/help/how-do-i-submit-a-claim-under-the-turbotax-1...

     

    But it only covers actual CALCULATION errors in the program, not user error (and it’s almost always user error), and it only pays any penalties or interest resulting from that error, not the taxes. Either way, you are still responsible for the increase in tax.

     

     

    If the IRS reduced your refund they will mail you a letter.  Check IRS Where's my refund to see what they sent you.

    https://www.irs.gov/refunds/

     

    The 2 most common reasons this year is you entered the wrong amount on line 30 for the Recovery Rebate Credit (3rd Stimulus payment) or line 28 for the Child Tax Credit.  Those lines are just if you didn't already get the full amount or qualify for more.  The IRS knows what they already sent you.  

     

    A lot of people answered the questions wrong and tried to claim the credits again.  Double check your bank statements and Check your IRS account to see when and what they sent you (check both spouse's accounts if married)

    Your Online Account | Internal Revenue Service

     

    If the IRS thinks they sent it to you but you didn't get it request a trace for a missing third Stimulus payment

    https://www.irs.gov/newsroom/questions-and-answers-about-the-third-economic-impact-payment-topic-j-p...Your Online Account | Internal Revenue Service

     

     

     

     

     

    More details and assistance on why your refund may have been lower than expected has been provided by clicking here

     

     

     

    You should have received a letter from the IRS telling you why your refund amount was changed. The two most common reasons so far this season are:

    1. You did not enter that you received the stimulus payment in TurboTax, so your return said you were getting the money back, but the IRS caught it and said, no, you already received it.
      • If you look at line 30 of your 1040 and it shows an amount there, and you already received the $1,400 per person last year when they sent out the stimulus payments, this is likely the reason.
    2. You did not report the full amount of your Advanced Payments for the Child Tax Credit that you already received.  Again, the IRS will catch this and make the changes to your return. 
      • This you can see on line 28.  The amount on that line if you receive the Advance Payments should be one half of what you were eligible for.  If you had 2 kids under 6, you would have been eligible for $7,200 so the correct number would be $3,600 on line 28 if you received Advance Payments.  If it shows $7,200, then you did not enter your advance payments which is why the IRS changed your return. 

    You should look for a letter from the IRS and if you do not have one or do not receive one, you would need to call the IRS at 800-829-1040 as no one else would have the answer as to why your refund was reduced. 

     

     

     

     

    Level 15
    November 10, 2022

    literally millions of tax payers made mistakes regarding the stimulus (Line 30) and the child tax credit (line 28).  Would not surprise me if the adjustment in your refund was related to either of these two line items. 

     

    neither will be part of the 2022 tax season since Cogress did not extend either benefit.  So it'll all be simpler this coming tax season.