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Sunny16
Returning Member

Tax refund sent is incorrect

I filed my taxes and they were accepted feb 12, 2021. Then the unemployment credit came. TurboTax showed my refund going up. I had unemployment added this year otherwise everything was the same. 2 kids. Uber income. Uber deductions. Social security for my husband. I got a notice today stating my refund is being reduced by $2,100 and some change. and the explanation says the child credits. If I’m being taxed on less income how does my refund go down. That’s not even possible. Less taxes means less refund? Can anyone explain this. It’s already taken 6 months and I was counting on at least what was the original amount. How did it go down. It says due to incorrect child tax credit amount and Incorrect EIC. Again how is it they took away $2100 when I’m supposed to pay less taxes. That doesn’t even make sense. Do I now have to do an amendment? And wait even longer for rest of my money. The state automatically sent more money. So how does that increase but the federal lowers. 

3 Replies
Critter-3
Level 15

Tax refund sent is incorrect

First the "change" is probably interest paid for the delay in processing which sadly is taxable income on the 2021 return you file next year.

 

 

If it is the same letter I have seen it gives a "laundry list" of possible "errors"  and in almost all cases this year the only one that applies to you is the last one for "math" errors.   What they are referring to is line 30 of the 1040 for the Refund Recovery Credit.   The IRS checked their records and are disagreeing with some or all of  the amount of stimulus money  you say you did not get in advance that is listed on line 30 .  

 

So review your records ... did you enter the incorrect amount ?  If so then you have to initiate a trace on the missing payments.  

 

If that is not the problem then it is possible that reducing your unemployment income COULD have reduced the CTC and/or  EIC  especially if you did not use the 2019 earned income figure to compute the credits.  These late tax law changes have been a headache for the IRS and since this had to be reviewed by a human and humans can make errors so  this may be a processing error.

 

This PUBLIC forum is not the right place for you to get answers ... I suggest you contact TT support on Monday to see if they can give you personal assistance ...   or the audit support number may be better... 

 

 

Please use the following link to contact Customer Support for further assistance.

https://ttlc.intuit.com/community/using-turbotax/help/what-is-the-turbotax-phone-number/00/25632

 

TurboTax has a special phone number for help with IRS/state tax letters, which will be easier than going through regular Customer Support.   At the page below, click on the blue button that says "Get Help from TurboTax Support".  Then it will ask you what tax year is your letter.  Then it will ask you what the letter concerns. Then it will show you the phone number during posted business hours.

https://support.turbotax.intuit.com/irs-notice/audit-support/

Sunny16
Returning Member

Tax refund sent is incorrect

Thank you for your help. I’ll look into that. I know it isn’t the recovery rebate issue but now you have given me the possible issue cuz of the change you could use the 2019 info. That i might of done. I’ve used turbo tax for years and I love it. I know this year the issues weren’t tt’s fault. I know there were tons of changes and just extra mess that the irs isn’t equipped to handle and TurboTax can only give the info they are provided etc. So thank you for your response. 

fanfare
Level 15

Tax refund sent is incorrect

@Sunny16 

If IRS reduces your refund,  not due to an offset, it is definitely TurboTax's fault.

The program is supposed to help ensure you file a correct tax return.

It failed you this time.

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