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Posted

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?

Posted

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.

Posted

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.

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