I got a verified bill from the IRS for a grand because there was an error on my 1040 under "Recovery Rebate Credit". The only one of the listed reasons on the letter I fell into was my adjusted gross income exceeding the limit; above 150k for married filing jointly.

WTF does this mean? I used TurboTax and inputted everything honestly. TurboTax filled out the forms. I got the damn stimulus payments and reported them when TurboTax asked for them.

Sounds like software error, most preparers have a guarantee that if it's their error, your not liable. Might want to check if they offer the same.

I got a letter once from the IRS. It was legit. The year after I got divorced, I claimed my kid since we had joint custody. We had agreed upon it (me claiming one year, her the next) but she was trying to fuck me over. The letter had a number and I called. It rang right to a real live person and we discussed how to prove who had him the most that year-turns out my name was on the daycare call list and hers wasn’t and that’s what made me not to have to pay the return back....ex-wife did. Best part was I didn’t have to talk to her about it at all. The irs lady was more than happy to be the bad guy.

Several years later I got a letter from the IRS about failing to pay taxes for part of the year. I called the number and I explained to the nice person that I had been in a war zone and wasn’t taxed and he could call my personnel supporting unit for proof. Got a letter back saying everything was fine.

So I’m sure there is a number in the letter you got. Call it and see what they want. Someone has been assigned to this and that’s who can help explain it. Otherwise don’t respond and wait until they do send a letter with someone to call and talk to.

Doesn't Turbo Tax include help dealing with the IRS if there is an "error." Actual CPAs and tax preparers help clients with this all the time. They contact the Service and try to talk them into seeing it your way. Contact Turbo Tax.

I got a letter once saying my return contained a material error. I wrote back, told them that they were all washed up, and the reasons why. About four or five months later I got a letter back telling me to forget about it. It was a mistake or misunderstanding on their part. All this small potatoes stuff comes out of the computer, and it is not at all unheard of for the program to generate notices that are not correct.

quote:

Originally posted by jhe888:
Actual CPAs and tax preparers help clients with this all the time. They contact the Service and try to talk them into seeing it your way.

Yup. This is why, though my wife's and my taxes are very, very simple, we pay A Guy to do our taxes every year. His charge recently went up, but, even at $150, we feel it well worth the peace of mind.

Glad to see I am not the only one. I have had three letters from the IRS this tax year alone. The latest was a 1099 ssn mismatch. Their error, not mine.

As stated above contact Turbo Tax and let their CPA handle the issue. I would NOT bother calling the IRS.

What amount do you have on your 1040 line 30 and 32?

quote:

nd it is not at all unheard of for the program to generate notices that are not correct.

75% of IRS letters my tax clients get are IRS errors. I often wonder how many people pay the amount due on the letter when they owe nothing.

Ha, think there was an issue with turbo tax this year. We had the same thing happen on the recovery rebate thing. We said we did get it, and turbo tax somehow put no for us. No errors in the software. Our refund got held up for 2 months, and then decreased by that amount. I called and found out it had been changed from yes to no on the form, so it added that amount in our taxes. So at least it was legit on ours.

quote:

Originally posted by BlackTalonJHP:
What amount do you have on your 1040 line 30 and 32?

30: 2829
32: 2900

Sounds like I'll be calling TurboTax. Calling the # on the form and "talking" to the IRS only confirmed that it was real. Never got to talk to a person.

I won't ask anymore details about your personal return on the forum, but it sounds like you were partially eligible for the RRC but you didn't receive the EIP1/EIP2 and claimed the credit on line 30. Or at least that is what Turbo Tax thinks.

Could there have been a question in TT that asked if you received the EIP1 and EIP2 that was answered as 'no' and should have been 'yes'? This is what I'm leaning towards.

I received each of the stimulus payments and noted it on the return, as far as I can recall. I didn’t expect to receive any of them because of our income, but I went back through bank statements to make sure we had gotten those deposits.

OK. It sounds like you received the payments but you also claimed an additional credit on line 30. Hope this helps.
https://www.taxact.com/support...c-credit-calculation

quote:

Originally posted by BlackTalonJHP:
OK. It sounds like you received the payments but you also claimed an additional credit on line 30. Hope this helps.
https://www.taxact.com/support...c-credit-calculation

Well, shit. Sounds like they sent me too much stimulus. I figured I wouldn't have received the full amount, but that's what they sent me.

I called TurboTax and got ahold of a CS rep from India who barely spoke English. She said that they could not get into my account to verify if I made an error or if their program did. Then she topped that off with "I haven't received any calls complaining about this issue."

Good-bye, TurboTax. I applied to get my $80 refunded and will not be using their "services" again. My taxes are starting to get complicated enough I'd rather use a person, anyway.

quote:

Originally posted by jhe888:
Doesn't Turbo Tax include help dealing with the IRS if there is an "error." Actual CPAs and tax preparers help clients with this all the time. They contact the Service and try to talk them into seeing it your way. Contact Turbo Tax.

I got a letter once saying my return contained a material error. I wrote back, told them that they were all washed up, and the reasons why. About four or five months later I got a letter back telling me to forget about it. It was a mistake or misunderstanding on their part. All this small potatoes stuff comes out of the computer, and it is not at all unheard of for the program to generate notices that are not correct.

Yes they do offer help. I had an issue with my 2018 return, (Came up Jan this year) with the IRS saying I owed and additional 2k due to unreported income. Called TT and got to a CPA that spent nearly an hour going through the return in great detail. Turned out all of my income was reported but one fairly large item was reported on the wrong form. Totally my fault. I filled out a 1040C and sent it back in response to the IRS letter.