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Turbotax calculated my AGI based on the information I gave them, which was correct. Now the IRS is saying my AGI was too high and the difference is over $4k I owe.

 
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8 Replies

Turbotax calculated my AGI based on the information I gave them, which was correct. Now the IRS is saying my AGI was too high and the difference is over $4k I owe.

They didn't change the AGI itself, they changed one of the things that goes into the AGI.  The letter should tell you what that was.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

Turbotax calculated my AGI based on the information I gave them, which was correct. Now the IRS is saying my AGI was too high and the difference is over $4k I owe.

The letter stated that “one or more of the following items was incorrect”. I checked all of them and they were all correct except 1. If I claim head of household, my AGI could t be over $112,500. TurboTax had my AGI at $114k. So it seems that everything was correct, except turbo tax made a mistake calculating my tax return/liability. Seems TurboTax should owe that difference right?

Turbotax calculated my AGI based on the information I gave them, which was correct. Now the IRS is saying my AGI was too high and the difference is over $4k I owe.

Taxpayers who file Head of Household with an AGI under $112,500 will receive a $1,400 stimulus payment.  But the IRS says your AGI was too high to qualify, so your stimulus was reduced.

 

TT calculates your AGI correctly (after all, it's just arithmetic), based on the information that you entered.  

Turbotax calculated my AGI based on the information I gave them, which was correct. Now the IRS is saying my AGI was too high and the difference is over $4k I owe.

More likely they denied the stimulus credit on line 30 of the form 1040 ... if you already got it in advance you cannot also have it as a credit ... this section of the program was completed incorrectly by many users.  

 

If the IRS has reduced your refund, they will be sending you a communication explaining why they reduced the amount of your refund.  Once you know the nature of the problem, you may be able to correct the problem by amending your 2021 Federal tax return.

 

If you did not receive $1,400 for the third stimulus payment, the IRS may think that you were already issued the third stimulus payment.

 

At your IRS online account, you can find whether a payment was issued to you that you did not receive.  You can also find this information on your tax transcript.

 

If you need to trace a payment that the IRS says has been issued to you, mail or fax a completed IRS Form 3911, Taxpayer Statement Regarding Refund.

 

Turbotax calculated my AGI based on the information I gave them, which was correct. Now the IRS is saying my AGI was too high and the difference is over $4k I owe.


@sambizzi1- wrote:

The letter stated that “one or more of the following items was incorrect”. I checked all of them and they were all correct except 1. If I claim head of household, my AGI could t be over $112,500. TurboTax had my AGI at $114k. So it seems that everything was correct, except turbo tax made a mistake calculating my tax return/liability. Seems TurboTax should owe that difference right?


It still is not clear what the problem is.   Head of Household has nothing to do with AGI (1040 line 11). it increases the standard  deduction on line 12 which decreases the taxable income on line 15.

 

You did not tell us what the "following items"  were so we could help.

 

In an event, TurboTax will never pay the tax if the TurboTax calculations are wrong (almost never) that should have been paid if the error did not occur - them most that it will pay is any late penalty or interest that the IRS assesses because of the error, but not the tax itself.

 

 

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

Turbotax calculated my AGI based on the information I gave them, which was correct. Now the IRS is saying my AGI was too high and the difference is over $4k I owe.

Ok. No, I understand that. But TT calculated my refund incorrectly. They had my correct AGI and apparently missed the fact that I didn’t qualify for that stimulus. I thought they guarantee their calculations?

Turbotax calculated my AGI based on the information I gave them, which was correct. Now the IRS is saying my AGI was too high and the difference is over $4k I owe.


@sambizzi1- wrote:

Ok. No, I understand that. But TT calculated my refund incorrectly. They had my correct AGI and apparently missed the fact that I didn’t qualify for that stimulus. I thought they guarantee their calculations?


How much was your AGI on the 2021 federal tax return Form 1040 Line 11?

Turbotax calculated my AGI based on the information I gave them, which was correct. Now the IRS is saying my AGI was too high and the difference is over $4k I owe.


@sambizzi1- wrote:

Ok. No, I understand that. But TT calculated my refund incorrectly. They had my correct AGI and apparently missed the fact that I didn’t qualify for that stimulus. I thought they guarantee their calculations?


The calculations are correct.

 

As pointed out above by Critter,  TurboTax calculates the amount of stimulus that  you could get and adds that to your refund then in the final review it asks it that is what you actually received, it you say yes, then it removes it form your refund.     And again, you did not loose anything or pay extra tax so-nobody will pay you what you were not entitled to in the first place.   It is also your responsibility to carefully check the tax return for errors before you submit it and TurboTax asks you to print the return prior to filing - line 30 of the 1040 form would clearly show the recover rebate credit that you already received and are not entitled to collect again.   You could then go back and tell TT that you did receive the credit that would remove it.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
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