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

[Kamcginty]

I will no longer be using them either. This was their fault.

[Kamcginty]

I am pulling back my fee I paid!!

[Kamcginty]

what question was asked. Because I answered the question as it was asked. I did receive the money, and that is why it is showing as income

[DoninGA]

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@Kamcginty wrote:

what question was asked. Because I answered the question as it was asked. I did receive the money, and that is why it is showing as income

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If you received the 3rd stimulus and indicated that in the program then there would NOT be an amount on Line 30 for the Recovery Rebate Credit.  There is only amount on Line 30 if you indicated you did NOT receive the 3rd stimulus payment.

[Kamcginty]

your software asked the question, IRS says they are answering thousands of calls about the very sam thing The fault is in the software.how can everyone be wrong? Every other line on the form shows money we received from income, or stocks etc, why is this line a zero if you received money?? Backwards! And if we did not have to report it, as it states on the IRS website, and it was tax free, why did you not have the software define it that way?

You caused a lot of people hardship. Had that not been on there, I would be getting a refund, now I have to pay and I do not have that money!

[Kamcginty]

My daughters is the same way, and if I answered mine wrong, I know she got all three and hers is messed up as well!! It is from Turbo Tax software!!

[DoninGA]

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@Kamcginty wrote:

your software asked the question, IRS says they are answering thousands of calls about the very sam thing The fault is in the software.how can everyone be wrong? Every other line on the form shows money we received from income, or stocks etc, why is this line a zero if you received money?? Backwards! And if we did not have to report it, as it states on the IRS website, and it was tax free, why did you not have the software define it that way?

You caused a lot of people hardship. Had that not been on there, I would be getting a refund, now I have to pay and I do not have that money!

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If the question has not been asked and you received the stimulus payment then the amount of taxes owed would be exactly the same as being requested by the IRS.

The 3rd stimulus payment is not taxable income and is not entered on a tax return.

The question had to be asked since not everyone received the 3rd stimulus payment.  For those individuals they would be eligible for the Recovery Rebate Credit.  The credit is entered on Line 30 and would be either increase their refund or reduce the amount of taxes owed.

You received the stimulus but indicated you did not when asked so the Recovery Rebate Credit was incorrectly entered on your federal tax return.  The IRS removed the credit and you now owe taxes.

[fanfare]

@Kamcginty 

 a lot of lines show positive numbers for money you did not get (credits)

Earned income credit

Retirement Savings credit

American Opportunity credit

Rebate Credit (for folks who are eligible for an EIP they did not get)

Any one of these, if claimed invalidly, will be stricken from your return by the IRS.

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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.

[VolvoGirl]

It is not taxable and you aren't paying it back.  Your 2021 return starts out by assuming you didn't get any Stimulus payments so it gives you credit for the full amount and your refund was too high.  Then near the end you enter how much you actually got so it only gives you the difference if any.  So you don't get it again.

Look at your tax return.   It is not added as income anywhere or subtracted anywhere.  Income is only on 1040 lines 1-11.  The Recovery rebate credit on line 30 is only if you didn't get the Stimulus payment or qualify for more.   So if you already got it then line 30 should be BLANK.

Then if you try to claim it again on line 30 but the IRS already sent it to you they will take it off your return and reduce your refund or send you a bill.  Line 30 is only if you didn't get the full amount or qualify for more. 

[SweetieJean]

As of April 7, the IRS had issued 9.4 million math error notices — and 8.3 million of these notices were related to the recovery rebate and the child tax credit.  These cannot all be software errors.

Where's My Refund? IRS has some answers but others left clueless (freep.com)

[elizabethboodrob]

Yes, indeed!  Having used Turbotax for YEARS, I am now questioning whether or not I should keep using it.  The IRS informed me that I owed them more money due to the miscalculation of line 30, which, was an automatic calculation by Turbotax on the worksheet.  There should have been a flag to note the Recovery Rebate Credit not available if your AGI was over so much, which mine was.  It never said that anywhere on the worksheet.  How is a person to know?   

I am very unhappy about this.

[DoninGA]

@elizabethboodrob TurboTax uses the same Recover Rebate Credit Worksheet as the IRS.

Go to this IRS website for the Form 1040 Instructions, the RRC is on page 59 - https://www.irs.gov/pub/irs-pdf/i1040gi.pdf#page=59

If your 2021 AGI on the Form 1040 Line 11 was greater than amounts in the worksheet on line 10 for your filing status then there would not be an entry on Form 1040 Line 30 for the RRC and the question in TurboTax for the receiving the 3rd stimulus payment would not even been asked.

• Single or married filing separately—$80,000
• Married filing jointly or qualifying widow(er)—$160,000
• Head of household—$120,000

If your 2021 AGI is less than the amounts on line 10 of the worksheet and you indicated that you did not receive the 3rd stimulus payment and the IRS has records showing that you were sent the payment then the IRS removed the RRC from Line 30 of the Form 1040.

[VolvoGirl]

What is your AGI?   It's probably not because of the AGI.   Turbo Tax would not give you the Recovery Rebate Credit if your AGI was over the max.  80,00 for Single or 160,00 married joint.

Did you get any of the 3rd stimulus last year starting in March 2021?  How much?  How much is on line 30?  Line 30 is only if you didn't get the full amount or qualify for more. 

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

[NCperson]

@Kamcginty - understand that in IRS parlance, the Recovery Credits were "payments" made on your behalf by Congress.  So while it may seem backwards, line 30 is considered a payment and a reduction to what you otherwide owed.  if you already received the 3rd stimulus, then there is no additional payments and Line 30 would be zero.  if you did NOT receive the 3rd stimulus then Congress is making a $1400 payment on your behalf via Line 30.

make sense? 

[Kamcginty]

Thousands of us! There are sites on the internet where people that used Turboo Tax , and all has the same exact problem. And this lady keeps writing to me as if I am stupid and do not k ow how to do my taxes. I have been doing them for 40 years by hand, o my started software for the last ten years, and I was getting back a couple thousand and now I owe?