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Taxcaster inaccurate 2021?

Using your info ... 55K/0WH/4kids(3 under 17)/7000 stim cr advance/4500 advance CTC ....         I get a refund of $3200  which is correct.   Remember you have an 18 year old on the 2021 return so the credit you got for that child was reduced from $2000 to only $500. 

 

This is close to the usual $4000 refund you are used to.   Many will be surprised this year that their refunds are less due to the advance CTC payments.  

Taxcaster inaccurate 2021?

I'll keepy fingers crossed that I'll see the $3200 as opposed to the $1800 it's telling me.

Taxcaster inaccurate 2021?

Remember you have an 18 year old on the 2021 return so the credit you got for that child was reduced from $2000 to only $500. 

 

Taxcaster inaccurate 2021?

And if you really got 6 x $1400 = $8400 of the advance third  stimulus payment that would reduce the $3200 by $1400 =  1800 so the program is correct.  

Taxcaster inaccurate 2021?

Before you prepare your actual tax return ---- make sure you know EXACTLY how much you received for the stimulus money in 2021   --- do not mess that up.    And make sure you know EXACTLY how much you received for the advance child tax credit payments.

 

You will want to check your account on the IRS site to make certain of those amounts

 

https://www.irs.gov/payments/view-your-tax-account

 

And....you have a college student?  When you prepare your return you will want to look at the American Opportunity education credit.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

Taxcaster inaccurate 2021?

I'm seeing exactly the same thing happening to my estimate. It seems to be treating the stimulus payment as income and increasing my tax burden even after putting in all my information. If I leave out the stimulus payment, I get an amount that's pretty close to what I usually get every year. 

Taxcaster inaccurate 2021?

We cannot see what you are doing.   But....the stimulus money is NOT taxable, so you are misinterpreting something.   If you neglect to enter the amount of stimulus money you received then the software thinks you did not receive it and is adding it again.   You cannot get it twice.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

Taxcaster inaccurate 2021?

I know it's not taxable. So why is it increasing my tax burden after entering the amount? If it has no effect on income or taxes owed then nothing should change. 

Taxcaster inaccurate 2021?

@gmwilliams8610 This thread began with another user who was not entering everything and getting upset with the results before all of his information had been entered.   That user was looking at results before he even entered information for dependents.    Until ALL of your information has been fed into the estimating tool, you cannot see real results.   And......are you receiving monthly child tax credit payments----your refund will be less than in past years since you are getting half of that credit in advance.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
Berube103
New Member

Taxcaster inaccurate 2021?

I never got my 

Stimulus check or my federal check. Or my child care credit

Taxcaster inaccurate 2021?


@Berube103 wrote:

I never got my 

Stimulus check or my federal check. Or my child care credit


You can claim the increased Child Tax Credit on your 2021 tax return you file next year.

 

Did you e-file your tax return and was it accepted?

You complete your tax return by finishing all 3 Steps in the File section. In Step 3, to e-file your tax return, you must click on the large Orange button labeled "Transmit my returns now".

 

After completing the File section and e-filing your tax return you will receive two emails from TurboTax. The first email when your tax return was transmitted and the second email when the tax return has either been accepted or rejected.

 

To check the status of an e-filed return, open up your desktop product or log into your TurboTax Online Account. You can find your status within the TurboTax product.
If accepted by the IRS use the federal tax refund website to check the refund status - https://www.irs.gov/refunds

 

Millions of 2020 tax returns have not been processed by the IRS.

Go to this IRS website for information - https://www.irs.gov/newsroom/irs-operations-during-covid-19-mission-critical-functions-continue

 

 As of December 4, 2021, we had 6.7 million unprocessed individual returns. Unprocessed individual returns include tax year 2020 returns with errors and those returns requiring special handling such as those that require correction to the Recovery Rebate Credit amount or validation of 2019 income used to figure the Earned Income Tax Credit (EITC) and Additional Child Tax Credit (ACTC). This work does not require us to correspond with taxpayers but does require special handling by an IRS employee so, in these instances, it is taking the IRS more than 21 days to issue any related refund and in some cases this work could take 90 to 120 days. The IRS is having to correct significantly more errors on tax returns than in previous years. The IRS has reduced the number of returns requiring special handling from an historical high of 9.8 million on May 1, 2021 to the current level of 61,000 individual returns as of December 4. If a correction is made to any RRC, EITC or ACTC claimed on the return, the IRS will send taxpayers an explanation. Taxpayers are encouraged to continue to check Where’s My Refund? for their personalized refund status and can review Tax Season Refund Frequently Asked Questions.

 

How long you may have to wait: The IRS understands the importance of timely processing of tax returns and refund issuance. We have processed all error free refund returns received prior to April 2021 and continue to work the returns that need to be manually reviewed due to errors.  We are continuing to reroute tax returns and taxpayer correspondence from locations that are behind to locations where more staff is available, and we are taking other actions to minimize any delays. Tax returns are opened and processed in the order received. As the return is processed, whether it was filed electronically or on paper, it may be delayed because it has a mistake including errors concerning the Recovery Rebate Credit, is missing information, or there is suspected identity theft or fraud. If we can fix it without contacting you, we will. If we need more information or need you to verify that it was you who sent the tax return, we will write you a letter. The resolution of these issues could take 90 to 120 days depending on how quickly and accurately you respond, and the ability of IRS staff trained and working under social distancing requirements to complete the processing of your return.

 

What you should do: In most instances, no further action is needed but you may check Where’s my refund or you can view your account. If you filed electronically and received an acknowledgement, you do not need to take any further action other than promptly responding to any requests for information. If you filed on paper, check Where’s my refund? If it tells you we have received your return or are processing or reviewing it, we are processing your return, but it may be under review. We’re working hard to get through the backlog. Please don’t file a second tax return or contact the IRS about the status of your return.

mg2450
New Member

Taxcaster inaccurate 2021?

I am having the same experience as the individuals posting here. I have extremely simple taxes. I entered my gross wages, my state and federal withholding and it showed a refund of $1100.  The ONLY change I make after that is adding the $1400 stimulus payment I received in March. At that point, it changes to say I OWE ~$200. the stimulus is the only thing I add and I suddenly lose the equivalent value in tax refund.  

Taxcaster inaccurate 2021?

 Your 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.

Taxcaster inaccurate 2021?

It is working perfectly ... the program starts with the assumption that  you did NOT get the 1400 in advance so it is included in the estimated refund amount  ...  and then when you say you DID get  the 1400 it is removed.  This is why you should not look at the bottom line until you have entered all the information.  

mg2450
New Member

Taxcaster inaccurate 2021?

Thanks, that is helpful clarification, that should be included in the calculator.  Also, that said, it is a  horrible model from a psychology standpoint. It's always better to ADD more than take away as you go along. It should assume you didn't get it up front, and then surprise you with $1400 if you didn't. That is super confusing and disappointing. 

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