Making Work Pay Adjustment

[Jesse]

I've had rejects and now I have adjustments!

Is anyone else having adjustments from the IRS for underpayments? I have a second client that has come in with a notice from the IRS that they are receiving more than what was calculated.

Social Security recipient who did receive the $250 and has wages, Schedule M completed and calculated $150 credit. Notice issued that Schedule M credit completed incorrectly and will receive an additional $100. That adds up to $500?

YES, they did have the bank statement that had the $250 received in February.

[Burke]

I thought the SSA payment was in May. That's the month I am telling clients to check.

[fliszt]

Yes,

just received my 1st client w/sched M adjustment. Can't figure it out yet. Told client to seach from May 7 to June end 2009 for auto deposit. I've gone over and over her "adjustment" and can't find why the gov added another $100 to her return.

[Jesse]

Burke, to tell you the truth it could have been May, but this is one of my "pay attention to detail clients" that believe me brings in everything.

My confusion on this particular one is why is it $100 more? Taxpayer received the $250, therefore the Schedule M making work pay credit calculated $150.

If he did not receive the $250 the making work pay credit (wages of $12,000 single) should have been $400, an adjustment of $250, not $100.

[MariaR08]

I just got one too! (At least that I know of.) My client's refund hadn't been direct deposited yet and I was checking on the status today and learned of the "adjustment" for Making Work Pay credit. He received an additional $200+.

I can't wait to get home to load up his return and figure out what happened! I mean it's great and all that it's actually more money because my client is super happy... but I'd like to figure out why it calculated wrong in my software - this makes me look bad

~maria

[oceanlovin'ea]

curious

Now you all have me curious. I will wait to hear from my clients and see if they have such an adjustment.

The $250 was in May.

Linda

[MariaR08]

*update*

I just got one too! (At least that I know of.) My client's refund hadn't been direct deposited yet and I was checking on the status today and learned of the "adjustment" for Making Work Pay credit. He received an additional $200+.

I can't wait to get home to load up his return and figure out what happened! I mean it's great and all that it's actually more money because my client is super happy... but I'd like to figure out why it calculated wrong in my software - this makes me look bad

~maria

So I looked everything over and I figured it out! This particular client had scholarship funds (taxable) and I didn't realize that my software didn't include that amount on the Sch M calculations - hence, it only reported the W2 wages on the Sch M and did not include the taxable scholarship amount which had it included it... the refund amount would of been correct (larger).

So... I'm going to make PS aware of this...

~maria