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Question

Anyone else get screwed over by turbotax messing up line 30?

Forum|Forum|5 years ago
March 16, 2021
21 replies
0 views

I got my full stimulus money. Turbotax added $200 onto line 30, indicating I should have received $200 more. The IRS flagged it, since it is incorrect. I now have to wait up to 10 weeks extra for my refund. Anyone else have this same experience?

TurboTax Self Employed Online

ReneeM7122

The stimulus is an advanced credit. If you entered the amounts that you received for the first and second stimulus payments, TurboTax factors that information into the calculation that shows what your entire credit is, based on your income and other factors. If you should have received $200 more than the stimulus that you got according to the calculation, then you received a credit on your tax return.

What is the Recovery Rebate Credit?

The Recovery Rebate Credit is authorized by the Coronavirus Aid, Relief, and Economic Security (CARES) Act and the COVID-related Tax Relief Act. It is a tax credit against your 2020 income tax. Generally, this credit will increase the amount of your tax refund or decrease the amount of the tax you owe.

The Recovery Rebate Credit was eligible to be paid in two rounds of advance payments during 2020 and early 2021. These advanced payments of the Recovery Rebate Credit are referred to as the first and second Economic Impact Payments.

Individuals who received the full amounts of both Economic Impact Payments do not need to complete any information about the Recovery Rebate Credit on their 2020 tax returns. They already received the full amount of the Recovery Rebate Credit as Economic Impact Payments. You received the full amounts of both Economic Impact Payments if:

Your first Economic Impact Payment was $1,200 ($2,400 if married filing jointly for 2020) plus $500 for each qualifying child you had in 2020; and.
Your second Economic Impact Payment was $600 ($1,200 if married filing jointly for 2020) plus $600 for each qualifying child you had in 2020.

Who can claim the Recovery Rebate Credit?

Eligible individuals who did not receive the full amounts of both Economic Impact Payments may claim the Recovery Rebate Credit on their 2020 Form 1040 or 1040-SR. To determine whether you are an eligible individual or the amount of your Recovery Rebate Credit, complete the Recovery Rebate Credit Worksheet in the Instructions for Form 1040 and Form 1040-SR.

Generally, you are eligible to claim the Recovery Rebate Credit if you were a U.S. citizen or U.S. resident alien in 2020, cannot be claimed as a dependent of another taxpayer for tax year 2020, and have a Social Security number valid for employment that is issued before the due date of your 2020 tax return (including extensions).

You must file Form 1040 or Form 1040-SR to claim the Recovery Rebate Credit even if you are normally not required to file a tax return. Anyone with income of $72,000 or less can file their Federal tax return electronically for free through the IRS Free File Program. Free File is a public-private partnership between the IRS and many filing and tax preparation software providers who provide their brand-name products for free. The safest and fastest way to get a tax refund is to combine electronic filing with Direct Deposit.

galaenAuthor

But I did receive the full amount of stimulus that I should have and I entered that in when filing. I am not the only one with this issue. The IRS had to flag my return as having an error, fix the error then finish pushing it through their system. TurboTax is the one that added that I should have received $200 more, therefore causing my refund to take more than the average 21 days. I have talked with the IRS and confirmed this.

fanfare

Employee

Always print a copy of your completed tax return for your records, and review it carefully before e-Filing.
You will need it if you are audited by the IRS, or to amend if a TurboTax update changes your return or for any other reason,

AND, to find your AGI next year.
AND, to catch errors such as, incorrect amounts on line 30.

76665

Yes we did, was sapose to get 1300 back now only 500, soo pissed off, and only got 500 out of the 2800 if the stimulus money cuz turbo tax screwed up

fanfare

Employee

Even if TurboTax screwed up (unlikely)

IRS computer are calculating what you are eligible for and adjusting accordingly.

If IRS mailed a check and you did not get it, you may have to start a "Lost check search" with the IRS.

Tessa8282

Unlikely my butt

Rehiguera

Yes. Both my life partner and myself both listed we received the full stimulus yet somewhere along the line Turbotax added $600 for missed stimulus. Got a letter from IRS stating our returns were being adjusted for the amount.

NCPERSON1

@Rehiguera - there are other postings that TT had a bug that wasn't corrected until Feb 12 that caused Line 30 to inflate; the IRS has been catching them and reducing refunds by the inflated amount.

when did you submit your tax return? pre or post Feb 12?

TLCStark

Yes. It added $500 to mine and now I am arguing with the IRS just to get the correct amount of the second rebate that I have coming to me. I'm pretty sure I will never see that money.

LenaH

No. If Line 30 of your 1040 (Recovery Rebate Credit) is incorrect, the IRS will calculate the correct amount of the Recovery Rebate Credit, make the correction to your tax return and continue processing your return. If a correction is needed, there may be a slight delay in processing your return and the IRS will send you a notice explaining any change made. It will not prevent you from receiving the amount you are entitled to.

2020 Recovery Rebate Credit — Topic G: Correcting issues after the 2020 tax return is filed

@TLCStark

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NCPERSON1

@LenaH - what I heard yesterday from an tax specialist who has a close relationship with the IRS and Taxslayer, that the IRS is ONLY adjusting Line 30 in one direction:

if Line 30 is inflated (e.g. the stimulus payments entered were understated), the IRS is adjusting that,

HOWEVER

if Line 30 is deflated (e.g. the stimulus payments entered were overstated), the IRS is not doing anything and waiting on phone calls/ amendments....

the adjustment is not automatic is my point

that is consistent with their FAQ';

Q G1. I'm eligible for a 2020 Recovery Rebate Credit but did not claim it on my 2020 tax return. Do I need to amend my 2020 tax return? (added March 1, 2021)

A1. If you didn't claim the credit on your original tax return, you will need to file an Amended U.S. Individual Income Tax Return, Form 1040-X. The IRS will not calculate the 2020 Recovery Rebate Credit for you if you did not enter any amount on your original tax return.

LenaH

Yes, I completely agree with you @NCPERSON1

@TLCStark If you are waiting for the IRS to release the remainder of your refund less the $500 credit, then the IRS will do that automatically. If you are qualified for an additional amount under the Recovery Rebate Credit, then you may have to amend your return.

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plwagon59

Yes , Been with rhem dor years and this was the first time That It was free.What a crock of !@#$.Still nothing.After several Letters from the IRS saying that it was incorrct.They make us pay one way or the other .Maybe spite.

Maeonie

Yep, same here…i filed in February and was wondering where my refund was, and received a letter nearly 2 months ago stating the same thing. Turbo tax knew this and withdrew their fee from my checking account a few weeks ago instead of waiting for my refund, just to make things more screwed up…will never use them again, after 15 years….

Kamcginty

I will no longer be using them either. This was their fault.

R WELLS

Yes, TurboTax messed up the line 30 entry for the Recovery Refund Credit. The specific error was made on line 12 of the credit worksheet. It specifically states that line 8 should be multiplied by line 11, but the program failed to perform this step and simply entered the line eight amount into line 12. Line 12 on my recovery worksheet was zero. If the multiplication had been done as required on the worksheet, it would have clearly indicated that I was not entitled to an additional Recovery Refund Credit.

Now I am sitting here looking at the $1400 (plus penalties and interest) bill from the IRS. I wonder if TurboTax would acknowledge its obvious error an offer to cover my penalties and interest. I can’t seem to find anywhere on this site where I can report they made an error and request compensation.

I am a CPA with 35 years of tax preparation experience, but I never knew that I had to check TurboTax for math errors. If that is the case, I might as well just prepare my own return and not use software.

Tessa8282

They charged me the 250. Fee before i got my tax check. Irs only gave me 1/4 of the fee through the state tax. Still havent got my money and did my taxes in april. Who can i Punch?!

Tboolman22

I got screwed out of a 1000 some how something got calculated wrong when I filed. This is my lowest pay out year. I probably wont be using turbotax next year and I'm really thinking about talking to a lawyer about all this because that credit kept changing and apparently changed again and now I get even less

miguel013

Why am I receiving a letter that states I owe money now instead of getting a return?

Why was line 30 filled out if its supposed to be $0

And if I read correctly why is turbotax saying they never make mistakes when the IRS after speaking with them says that there have been a multitude of issues with returns from turbotax?

After arguing with the IRS and not being able to speak with the people who filed my taxes (great customer service BTW) i now owe money.

I read on here that depending on the inflation or deflation its adjusted to work in the favor of the IRS.

Welp, I also noticed that nothing was updated in my portal for turbotax regarding this change either.

It really is a wonder why so many people want to come here to the US we are so well put together.

Dont worry turbotax i wont be filing with you guys next year.

ruiz-rebecca79

I’m not filing with TT ANYMORE either! No trust! After 10 years —-

KrisD15

The Recovery Rebate Credit is a simple math calculation in the TurboTax program but requires input by the Taxpayer.

If you were eligible for four stimulus payments, you should have received 5,600.

How much did you receive?

If the credit on your 1040 showed 2,100, that would indicate you entered 3,500 as received. Is that the total from letters 6475?

The payments were 1,400 each, so unless they were reduced, having received 3,500 doesn't sound right.

Did the IRS report the correct amount on your letters? The IRS made some mistakes issuing letter 6475. You might want to check your IRS online account or your own records to see if the letters were correct or if that is the source of the error.

IRS Your Online Account

@ruiz-rebecca79

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