The IRS revised my Turbotax generated return by deducting $1,000 from my refund, claiming my stimulus rebate info was incorrect. Anybody understand this issue?

[duldej]

Came to me as a surprise.

[SweetieJean]

Did you claim fewer dependents on your 2020 return?  Or perhaps the IRS adjusted your income, so that the stimulus payments were in the phaseout period?

[xmasbaby0]

Did you enter an incorrect amount for the recovery rebate credit?  A lot of people became confused about what to enter.

[duldej]

No to both of these questions.

[duldej]

Regarding entering the incorrect amount(s), i figure that is where the problem is but I answered the prompts accurately.  Either I made a mistake or the prompts prompted me wrong.  If there are no other examples of this irs initiated return revision then i figure it is on me.  All the same it should be documented just in case.  I for one am curious, and have not encountered any irs-docking like this ever before, with or without the use of Turbotax.

[VolvoGirl]

What was the problem?  Sounds like you claimed too much on 1040 line 30?  Was there an amount on line 30 you already got or got after filing?  They have been crossing in the mail.  The IRS has been reducing the credit on line 30 for people who filed before they got the second round stimulus.

[xmasbaby0]

We cannot see your return so we do not know if you made any mistake.    There have been a lot of people confused by the need to enter the 2nd stimulus check that they got because their thinking was "I received it in 2021"   not realizing that the intent of the question was to determine how much the taxpayer REALLY received---and it had to to include that 2nd check even if received in 2021.   Others misinterpreted the question to mean just the amount for themselves and spouse, but neglected to include the amount received for dependents.  And of course there are users who filed and said they did not receive the check, and a week or two later--the check came.   

[duldej]

Line thirty reads $1,000.

likely that is the same $1,000 they took out but I answered the prompts correctly to my knowledge that generated the $1,000 figure for line 30.

i reported having received both stimulus checks and reported the figures on both accurately.  I was surprised to get the rebate.  So that's where I am at with this.  Turbotax told me I did not receive enough at the time I worked on that section.  Hence the $1,000 rebate.

[rotomarty]

Same here - got a letter saying I underpaid and I had to pony up over a grand plus interest.  First time in 15 years TT didn't work well.  I guess I got too comfortable with the previous service and didn't research more - I feel we pay TT to do the research IMO.

[VolvoGirl]

@rotomarty   The IRS letter should say what they changed in your return.   Why?

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 (both accounts if married)

Your Online Account | Internal Revenue Service

[NCperson]

@rotomarty 

1) what is the EXACT amount of the IRS adjustment?

2) what is on Line 28 of Form 1040?

3) what is on Line 30 of Form 1040? 

if you did not correctly enter what you had already received for either the Recovery Rebate Credit or the Advance Child Tax credit when prompted by Turbo Tax during the interview process, the IRS would have found that error and adjusted your refund / increased what you owe

Post the answers to my 3 questions and I can further explain what occured