TaxmannEA Posted March 6, 2010 Report Share Posted March 6, 2010 Just went over a new Sch M Problem. TP had around $10K in SE income. He also gets Social Security. The preparer showed the $250 payment which reduuced the Sch M credit to $150. The return was E-Filed and accepted. Now the TP gets a CP notice reducing the $150 by $119.20. There is no further explaination or calculation shown on the notice. Any thoughts on what might have happened? Quote Link to comment Share on other sites More sharing options...
Terry D EA Posted March 6, 2010 Report Share Posted March 6, 2010 I guess you the only thing you can do is verify the entries. Sorry, but I don't have an answer for you. Let us know what the final analysis is as it will be interesting to know. Quote Link to comment Share on other sites More sharing options...
jklcpa Posted March 6, 2010 Report Share Posted March 6, 2010 Is the soc sec and SE income his only income? There's the AGI limitation and phase-out, but his income if single would have to be about $81K for it to be the cause of the additional reduction. Quote Link to comment Share on other sites More sharing options...
TaxmannEA Posted March 6, 2010 Author Report Share Posted March 6, 2010 SE income (from Sch F) of about $10K and Social Security along with about $750 interest were the only income. SSA verified that he received $250 payment. As I said, there is no explanation of the adjustment on the notice. I'm assuming some type of IRS database error at this point. Quote Link to comment Share on other sites More sharing options...
TAXBILLY Posted March 6, 2010 Report Share Posted March 6, 2010 If he owed taxes from a previous year or a federal debt they would have reduced the credit. Wonder why there was no explanation. taxbilly Quote Link to comment Share on other sites More sharing options...
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