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March 16, 2021
Question

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

  • 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?

21 replies

March 2, 2022

You're not the only one, TurboTax entered a number on line 30 and yesterday I got a letter from the IRS, they want me to pay $351 plus interest and penalties. I entered the actual amount of stimulus received. 

March 16, 2022

Yes!!! For the first time ever (I’ve used TT over 10yrs) , husband and I OWE taxes—-WITH 2 dependents , making under $150k! I recall TT asked separately, Did ‘Jane’ receive letter 6475? Enter the amount____. Then it asked: Did ‘John’ receive letter 6475? Enter amount____. TT said we were getting $1876 back. We filed! Now, IRS said miscalculation. Line 30— in my taxes, Line 30 says $2100. IRS omits $2100 from Line 30, changed the refund amount and now, we owe $224???? Wth?!? We are pissed!!!! What’s that all about?!?? Plus we made $6k less! Super frustrating! 

I will NOT be filing with TT anymore! 

March 16, 2022

Happened to me again this year ! Was due to get back 471$ Now IRS changed and saying I owe 2500$. 

April 17, 2022

You are correct. I have used Turbo Tax since 1996 after spending 20 years doing my taxes, as well as family member's , by hand. I would get the IRS update booklet each year, study it, and complete the tax forms.

 

However, for me, this year, 2022 for 2021 taxes, Turbo Tax was disappointing. I gave it a 0 rating. When I entered numbers from 1099 forms and later reviewed my entries, they were wrong. This kept happening. It took me three frustrating days to do my taxes.

 

In addition to that, there were the fees, one of which I had no problem--$60.00 Defense in case of audit. The $25.00 plus tax, I have paid in the past to transmit each returns. This year, for me, there was the extra $23.11 to pay my federal taxes online and $40.00 to process my State refund. 

 

 

fanfare
Employee
April 17, 2022

@ruiz-rebecca79 

 

IRS is going to go by the amounts shown on the letter they sent you, regardless of what you or TurboTax enter.

For Advance Child Tax Credit, you could only have received at most  one half of that total credit in 2021.

 

The final result will depend on the number of dependents you claim.

April 25, 2022

TurboTax miscalculated the tax I owed from Lines 24 (total tax) and 32 (total payments and other refundable credits).  Due to TurboTax's error, we owed $23.00, and the IRS said because the amount on Line 32 was wrong, we will not get the rebate recovery.  We did not receive a third stimulus, so we were eligible for the rebate recovery credit of $2800.  TurboTax's error cost us a lot. 

DoninGA
Employee
April 25, 2022

@zmrq7 wrote:

TurboTax miscalculated the tax I owed from Lines 24 (total tax) and 32 (total payments and other refundable credits).  Due to TurboTax's error, we owed $23.00, and the IRS said because the amount on Line 32 was wrong, we will not get the rebate recovery.  We did not receive a third stimulus, so we were eligible for the rebate recovery credit of $2800.  TurboTax's error cost us a lot. 


Does the IRS website indicate that you were sent less than what was reported on your federal tax return Form 1040 Line 34? - https://www.irs.gov/refunds


If your refund is short $2,800 then that is because you said you did not receive the 3rd stimulus payment and the IRS has records that show you were sent the 3rd stimulus payment so they removed the $2.800 Recovery Rebate Credit that was entered on Form 1040 Line 30.


Go to this IRS website for your tax account to see if the 3rd stimulus payment is entered - https://www.irs.gov/payments/your-online-account
If you are Married Filing Jointly also check your spouse's tax account.


If you checked your bank account in the March - May 2021 timeframe and there is not a $2,800 EIP3 payment from the IRS then go to this IRS website for how to start a trace on the payment - https://www.irs.gov/newsroom/questions-and-answers-about-the-third-economic-impact-payment-topic-j-payment-issued-but-lost-stolen-destroyed-or-not-received

April 28, 2022

yes, I have been on the phone for hours today and prior day, where the IRS hung up, because they are too busy!

I am now sending in documents to show that I did not compute my taxes improperly. But not our state refund is being held up. 

May 6, 2022

Yes, indeed!  Having used Turbotax for YEARS, I am now questioning whether or not I should keep using it.  The IRS informed me that I owed them more money due to the miscalculation of line 30, which, was an automatic calculation by Turbotax on the worksheet.  There should have been a flag to note the Recovery Rebate Credit not available if your AGI was over so much, which mine was.  It never said that anywhere on the worksheet.  How is a person to know?   

I am very unhappy about this.

DoninGA
Employee
May 6, 2022

@elizabethboodrob TurboTax uses the same Recover Rebate Credit Worksheet as the IRS.

Go to this IRS website for the Form 1040 Instructions, the RRC is on page 59 - https://www.irs.gov/pub/irs-pdf/i1040gi.pdf#page=59

 

If your 2021 AGI on the Form 1040 Line 11 was greater than amounts in the worksheet on line 10 for your filing status then there would not be an entry on Form 1040 Line 30 for the RRC and the question in TurboTax for the receiving the 3rd stimulus payment would not even been asked.

• Single or married filing separately—$80,000
• Married filing jointly or qualifying widow(er)—$160,000
• Head of household—$120,000

 

If your 2021 AGI is less than the amounts on line 10 of the worksheet and you indicated that you did not receive the 3rd stimulus payment and the IRS has records showing that you were sent the payment then the IRS removed the RRC from Line 30 of the Form 1040.

 

May 11, 2022

Yes, TurboTax also 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.

May 15, 2022

Yes .  My refund reduced by amt on line 30. 

 

May 15, 2022

So the stimulus check was only an advance payment on my future tax return?  It was misrepresented.  Grrrrr

 

 

VolvoGirl
Employee
May 15, 2022

No.  It doesn't affect your tax return.  It doesn't go on your tax return.  Line 30 is only if you didn't get the full amount or qualify for more. 

It is not taxable and you aren't paying it back.  Your 2021 return starts out by assuming you didn't get any Stimulus payments so it gives you credit for the full amount and your refund was too high.  Then near the end you enter how much you actually got so it only gives you the difference if any.  So you don't get it again.

 

Look at your tax return.   It is not added as income anywhere or subtracted anywhere.  Income is only on 1040 lines 1-11.  The Recovery rebate credit on line 30 is only if you didn't get the Stimulus payment or qualify for more.

 

 

June 16, 2022

Yes, & because of them I got screwed out of $1200.

 

June 16, 2022

@jjredmond31 - can you please explain more?????

June 20, 2022

My refund has been held up on my 2021 taxes because my return was being checked for accuracy. So I've waited and waited and still the same message about my refund being delayed, blah blah blah. So I decided to do some research as to why this may be, because our joint return was super simple for 2021! Just a couple of 1099's basically, so I'm like accuracy?! Then I realized that I had not entered the $2800 on Line 30 for the third stimulus payment! I don't think we ever received IRS letter 6475, giving us instructions for our return. So, I had forgotten all about it and there is no amount entered on Line 30. So, I'm assuming this is what's held up our refund this year? And I don't remember TT asking me about this stimulus payment either. It says Do NOT file an amended return with the IRS. I'm wondering if this happened to anyone else? Is there anything I can do or should do? I'm supposed to get a refund and I've read that receiving that third payment should not affect my refund amount. I'm hoping that is true?

June 20, 2022

@Bamatami if you received the 3rd stimulus payment, then the correct entry on Line 30 is zero......you were asked during the interview process how much you received for the 3rd stimulus and you must have answered "$2800" as that is the only way Line 30 could have been zero (and I assume there are only two people listed on your tax return).

 

So that is not the reason for the delay. 

 

GIven the IRS backlogs and delays, the best advice is patience.  You know the IRS has your return so it just a matter of time,,,,,