Schedule 8812

[admorales9]

Hello, this is my second year preparing tax returns, I am fairly new at it. I just filed a client's tax return las month, and I accidently made an error on one of the questions in Schedule 8812, Line 13, question A1; it asked if the client had a place of abode (residence) in the US for more than half of 2021, I checked box "No", but it should have been checked "YES".

The IRS adjusted her tax return , and because of my mistake, the IRS is not recognizing her eligibility for child tax credit and the recovery rebate credit. 

Can I amend the return? I would really appreciate the advice. I have tried calling the IRS but I have no luck speaking with them. 

Thank you,  

[TaxGuyBill]

Yes, you can amend if the prior tax return was incorrect.

https://proconnect.intuit.com/community/amend-tax-return/help/how-do-i-amend-an-individual-return-us...

Changing that box should allow the full amount of the Child Tax Credit to be refundable.

However, I don't think that has anything to do with the Recovery Rebate Credit.  Why do you think that is affected?

Did the IRS change something else on the tax return, or did they only change something in relation to the Child Tax Credit and/or the Recovery Rebate Credit?

[jesusbowls]

If you checked "No" in that box, ProSeries would have not included the child tax credit anyway.  So why did IRS adjust the return?

[admorales9]

Client hasn't received the letter yet so I can see all the details. But when I switch the answer to yes, the refund amount goes up from what it used to be. Originally, a calculated refund of 2942 was expected, that's with the box marked at "NO", once I go back and switch the box to "Yes", the system recalculates at 5991. 

My client is only being refunded 142 as of now. 

Question 2, is a little deceiving, since it asked if a social security number has been issued on or before the due date for tax return 2021. Is this asking for dependents in general that were born before January 2021 or April 18 2021? I believe I may have made another error here. 

Thank you so much. 

[admorales9]

Originally, the refund was at 2942, when I changed the box to "yes", the system recalculates at 5991, which I don't understand what's going on. She didn't receive the 3rd stimulus for her 2 dependents on 2021. She only made around 25k for the year, and received half of the child tax credit advance payments. 

She has no other credits or deductions, so I feel like she should be getting a good refund back. 

I don't know if waiting for the IRS letter where it explains what happened is best versus initiating an amendment already. 

Thanks,