Why does Turbotax 2021 Calculator show huge difference in refund from regular tubrotax?

[technate]

I understand the Tax Calculator is an estimate, but all information is the same between both systems.  Income, Dependents, etc.  Even taking into account stimulus funds and CTC.  The difference between the Calculator and actual TurboTax is nearly $2k.  Any thoughts on the discrepancy?

[xmasbaby0]

We cannot see what you are entering into the estimate tool, nor can we see your tax return.   A lot of people are getting confused about the way the taxcaster handles the stimulus money though.

The tax caster tool starts out by putting the 3rd stimulus amount into the estimated “refund” you will get because not everyone received the 3rd stimulus in 2021—-some people will not get it until they file 2021 returns.   So when you enter that you actually already received the 3rd stimulus, the estimated “refund” is reduced because you cannot get that stimulus money twice.   You are not being taxed on the stimulus and you are not being cheated out of it.  

In January you are going to receive a letter from the IRS that shows how much stimulus you received in 2021.   You will enter that information carefully into your 2021 tax software.   If you are eligible to receive any additional stimulus money then it will appear on line 30 of your Form 1040.

[technate]

Lets just throw out some general info:

$55k income
Fed Taxes $2200

State: $2800

No unemployment or anything else regarding income.

CTC was $3k for two kids, but I have three children (one born this year so didn't get any advanced CTC payments on them)

Both the estimator tool and TurboTax proper have the same deductions entered as well as the CTC Details.

But one says for example, I am getting back $4k while the estimator says $6k.

Again, both are taking into consideration all the stimulus/child tax credits, as well as what has already been paid out.  
just appears the calculator is more generous.

[xmasbaby0]

The software still needs updates for the CTC.   In January you will get a letter  6419 from the IRS that shows how much you received for the advance CTC payments.   You will need to enter that amount carefully and accurately into the software.  Then watch line 28 on your Form 1040 for your CTC.

For the baby born in 2021:

Make sure you have entered your child as a dependent in My Info, and that you have entered the child's Social Security number. If your child was born in 2021make sure you said he lived with you the whole year.  There is an oddly worded question that asks if the child paid over half their own support.  Say NO to that question.

[technate]

All of that has already been done.  Everything is entered accurately in both systems.

One just shows $2k more than the other.

[xmasbaby0 · Accepted solution]

Sorry that you are frustrated with the estimating tool.    The actual tax software will always be more accurate than that tool.    But you have to wait for the "bugs" to be fixed in the software, wait for the software updates, and wait for all of the 2021 forms to be ready.   Then make sure you enter all of your information carefully and correctly.

There is no rush to e-file.  The IRS will not be accepting e-files until late January or early February.  Since you are getting the CTC you cannot possibly get your refund before the end of February at the very earliest, so there is no reason to rush your tax return.

https://ttlc.intuit.com/community/forms/help/irs-forms-availability-table-for-turbotax-individual-pe...

https://ttlc.intuit.com/community/forms/help/state-forms-availability-table-for-turbotax-individual-...

[technate]

All true!  Thank you for the input.