Tax return issue

[quesyrah]

Has anyone had this happen? We filed in early Feb so I’ve been checking our refund status regularly. It finally changed form
Accepted and being processed but apparently there is an issue.

We used turbo tax to file and usually it prompts you to fix errors if you make them and we didn’t get any prompts.

I’m going to call the IRS but in the meantime has anyone had this happen? They’ve changed our refund by $2,800.

We didn’t get the advance child tax credit even though we qualified and did not opt out, so we claimed it on our return. We did get the full stimulus for us and our 2 children. We went back and verified everyone’s name and SSN so it must be the “amount was computed incorrectly” option but I’m not entirely sure what that means.


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[Mushe]

The recovery rebate credit refers to the stimulus, if you didn’t get it as an advance, as I understand it. It’s weird that there was an error if you used TurboTax, though! My guess is that it’s an issue with the stimulus, rather than the child tax credit, but if you qualified and didn’t receive it as an advance and didn’t opt out, there may be a more complicated issue in your tax records.

[quesyrah]

Mar 26, 2022 14:42:33 GMT -5 Mushe said:

The recovery rebate credit refers to the stimulus, if you didn’t get it as an advance, as I understand it. It’s weird that there was an error if you used TurboTax, though! My guess is that it’s an issue with the stimulus, rather than the child tax credit, but if you qualified and didn’t receive it as an advance and didn’t opt out, there may be a more complicated issue in your tax records.

Thank you.

Apparently there is a letter we will receive in the mail which will have more information than what I can see online. So hopefully that will explain it.

I went back through our return and we did receive one $600 payment of the child tax credit and we did note that in our return.

[just]

Obviously I don’t know your specific situation, but from my experience, I’d guess that this is because your return stated that you didnt receive two spring 2021 stimulus payments, but the IRS believes you did.

Turbo tax assumes that you didn’t get the payment of 1400 (per adult) unless you say otherwise. For a married couple it may have increased your refund by 2800.

The IRS believes that you did receive that payment and have auto corrected your return. If you’re certain that you didn't receive it, you can check your irs account and if necessary do a payment trace to find out where it went.

ETA: Check out line 30 of your 1040, if it says 2800 there, you requested for the stimulus payment to be included in your refund. Good news - if you did receive 2,800 in spring 2021 for the stimulus, you don't need to do anything. This autocorrect will mean that millions won't need to do amendments.

[puppylove64]

I agree with just I used turbo tax and it was easy for me to miss that 2021 stimulus amount. I recognized that my refund was too high and knew I received that stimulus payment so I went back and told turbo tax that I did receive it. Check your bank around March of last year if you do direct deposit

[quesyrah]

Thank you both! The amount that the refund has been lowered by makes it a very real possibility that we missed that!

[jwright]

This issue comes up on tax Reddit often. It looks like you reported that you did not receive the third stimulus so it was credited on your return; however the IRS’s records show that you did and the credits have been removed, lowering your refund.

[quesyrah]

Mar 27, 2022 8:31:06 GMT -5 jwright said:

This issue comes up on tax Reddit often. It looks like you reported that you did not receive the third stimulus so it was credited on your return; however the IRS’s records show that you did and the credits have been removed, lowering your refund.

We checked our tax return last night and we did input the amount we received ($5,600) so I’m not sure how the error was made. We didn’t receive the stimulus payment until August, but I don’t think that matters.

[jwright]

Mar 27, 2022 10:48:26 GMT -5 quesyrah said:

Mar 27, 2022 8:31:06 GMT -5 jwright said:

This issue comes up on tax Reddit often. It looks like you reported that you did not receive the third stimulus so it was credited on your return; however the IRS’s records show that you did and the credits have been removed, lowering your refund.

We checked our tax return last night and we did input the amount we received ($5,600) so I’m not sure how the error was made. We didn’t receive the stimulus payment until August, but I don’t think that matters.

This question must be phrased poorly in Turbo Tax since it seems to be happening so much. If you look at Line 30 on your 1040, you should have nothing or zero there if you already got the funds. If there’s a number on that line that shows you did not get it and want it as part of your refund.

[quesyrah]

Mar 27, 2022 11:02:34 GMT -5 jwright said:

Mar 27, 2022 10:48:26 GMT -5 quesyrah said:

We checked our tax return last night and we did input the amount we received ($5,600) so I’m not sure how the error was made. We didn’t receive the stimulus payment until August, but I don’t think that matters.

This question must be phrased poorly in Turbo Tax since it seems to be happening so much. If you look at Line 30 on your 1040, you should have nothing or zero there if you already got the funds. If there’s a number on that line that shows you did not get it and want it as part of your refund.

Thank you. I’ll double check that.