Need help with IRS notice LTR 916C - injured spouse claim confusion

The LTR 916C is basically an information collection letter from the IRS - they're requesting more info or documentation from you to support your injured spouse claim. This happens frequently with injured spouse allocations because the calculations can get complicated. Based on what you described, it sounds like they initially processed your injured spouse claim and sent you what they thought was your portion of the refund ($700). Then after a review, they determined that your actual portion should have only been $100, which is why they're saying you were given $600 too much. The most important thing is to carefully read the entire notice to see what documentation they're asking for. Usually they want proof of your separate income, withholding, and sometimes expenses that show you deserve more of the refund than they calculated. You should gather all your W-2s, 1099s, and any documentation showing what income was yours versus your spouse's.

After dealing with a similar injured spouse situation last year, I found this great tool called taxr.ai (https://taxr.ai) that saved my sanity. I uploaded my LTR 916C notice and tax documents, and it actually explained what was happening in plain English. The tool showed me that the IRS often recalculates injured spouse allocations after they initially process them, which is probably what happened in your case. It identified that the IRS was using a different allocation method than what would be most beneficial for me. The tool broke down exactly how the IRS was dividing the refund and what documentation I needed to challenge their calculation.

Just wanted to update - I tried the taxr.ai tool after my skeptical question and wow, it was actually super helpful! I uploaded my LTR 916C notice and my tax returns, and within minutes it showed me that the IRS had miscalculated my portion of the refund. They weren't properly allocating my earned income credit between me and my spouse. The tool gave me a template letter to send back to the IRS explaining exactly why their calculation was wrong, with references to the specific IRS rules about injured spouse allocations. I sent it in last week, so now I'm waiting to hear back, but at least now I understand what happened and have a fighting chance. Much better than the hours I spent on hold trying to get someone to explain this to me!

I had a nightmare with injured spouse claims last year that sounds similar to yours. After getting nowhere with the IRS phone lines for weeks, I found Claimyr (https://claimyr.com) which got me through to an actual IRS agent in about 15 minutes. You can see how it works here: https://youtu.be/_kiP6q8DX5c The IRS agent explained that for injured spouse claims, they often send the check first and then do a more detailed review afterward, which is why you got the money and then a notice saying they gave you too much. The agent was able to go through the calculation with me line by line and explain exactly how they determined the split. Turned out there was actually an error in their calculation that they fixed while I was on the phone.

I need to eat my words from my skeptical comment earlier. After dealing with this injured spouse nightmare for weeks and getting nowhere, I tried Claimyr out of desperation. Within 20 minutes I was talking to an actual IRS person who could see my account! The agent explained that my LTR 916C was sent because they found a discrepancy between my reported income and what was on my W-2. The calculation for injured spouse allocations is based on the ratio of income between spouses, so even a small discrepancy changed my portion significantly. The agent was able to correct the income amount right there on the call and said I'd be getting a new notice within 4 weeks confirming the correct amount. She even gave me a reference number for the call in case I need to follow up. I'm shocked that this actually worked after spending literal days trying to get through on my own.

One thing to watch for with injured spouse claims - make sure the form was filed properly. I'm a volunteer tax preparer and I see this all the time. People file Form 8379 but they fill it out wrong, especially the income allocation section. If you don't correctly allocate the income, credits, and payments between you and your spouse, the IRS will do it for you based on their own calculation method which often results in a smaller refund. Also check if you accidentally filed an innocent spouse claim (Form 8857) instead of injured spouse (Form 8379). People mix these up constantly and they're completely different things!

I got a LTR 916C last year and it turned out to be because my ex had claimed our kid on his taxes too, so there was a conflict with my injured spouse claim. The IRS initially gave me a refund including the child tax credit, then decided I wasn't eligible after they matched up all the returns. Check if anyone else might have claimed your son as a dependent?

I went through something very similar with my injured spouse claim last year! The LTR 916C notice can be really confusing because it doesn't always explain their math clearly. A few things that might help: 1. The IRS often does an initial calculation when they first process your injured spouse form, then does a more thorough review later which can result in adjustments 2. Make sure to check if there are any issues with how income was allocated between you and your spouse on the original Form 8379 3. Double-check that no one else claimed your son as a dependent - this can cause major issues with injured spouse calculations The good news is that you have options to challenge their calculation if you believe it's wrong. You can call them for clarification (though getting through can be tough) or file an appeal if you have documentation showing their calculation is incorrect. Don't panic about the 2023 refund yet - each tax year is processed separately, so issues with 2022 don't automatically affect 2023. Keep all your documentation organized in case you need to provide additional proof of your income allocation.

I had a very similar experience with LTR 916C last year! The IRS initially sent me a refund check, then months later sent that notice saying they'd overpaid me. It's incredibly frustrating because the notice doesn't break down their calculation clearly. From what I learned through my ordeal, the IRS often does a quick initial processing of injured spouse claims to get refunds out faster, then does a more detailed review later. During that second review, they may use different allocation methods or catch errors that change your entitled portion. A few things that helped me figure out what went wrong: - I requested my account transcript online to see exactly what they had on file - I compared their allocation to what I originally submitted on Form 8379 - I checked if there were any discrepancies between my reported income and what employers reported In my case, they had allocated some of my husband's self-employment income to me by mistake, which made it look like I earned more than I actually did. Once I provided documentation showing the correct income allocation, they adjusted it back in my favor. Don't give up! You have rights as a taxpayer, and if their calculation is wrong, you can definitely challenge it. The key is having good documentation to support your case.

I went through almost the exact same situation with LTR 916C last year! The IRS sent me a refund check for my injured spouse claim, then about 6 weeks later hit me with that notice saying I got too much money. It's such a gut punch when you're already dealing with financial stress. What I learned is that the IRS has two different processing systems for injured spouse claims. The first one is automated and designed to get refunds out quickly, but it uses simplified calculations. The second review is done by actual people who look at your case more carefully and can catch things the automated system missed. In my case, the issue was that they hadn't properly separated out my earned income tax credit from my husband's portion. The automated system gave me credit for the full amount, but the manual review showed I was only entitled to a portion based on my income relative to his. I ended up having to provide copies of all my pay stubs and W-2s to prove exactly what income was mine versus his. It took about 3 months to resolve, but I actually ended up getting more money back than their corrected calculation because they had made an error in the opposite direction during the manual review. My advice: Don't panic, gather all your income documentation, and be prepared to fight for what's rightfully yours. The system is confusing but you can get through it!

I'm dealing with a similar LTR 916C situation right now, and reading through everyone's experiences here has been incredibly helpful! It sounds like this is unfortunately pretty common with injured spouse claims. Based on what I'm seeing from everyone's responses, it seems like the key issues to check are: 1. Whether the income allocation between spouses was calculated correctly 2. If there are any dependent claiming conflicts 3. How credits like EITC were split between spouses 4. Whether there were discrepancies between reported income and W-2/1099 forms I'm definitely going to request my account transcript and gather all my income documentation. It's frustrating that the IRS doesn't provide clear explanations in these notices, but it's encouraging to see that people have successfully challenged incorrect calculations. For anyone else dealing with this - it sounds like persistence pays off, even though the process can take several months. Don't let that intimidating notice scare you into just accepting their calculation if you think something's wrong!

I'm going through something very similar right now with my LTR 916C notice! Reading through everyone's experiences here has been so reassuring - I thought I was the only one dealing with this confusing situation. Like you, I filed injured spouse for both 2022 and 2023, got my first refund check, then received that dreaded notice saying they gave me too much. The notice was so vague about their calculation that I had no idea what went wrong. Based on all the helpful advice in this thread, I just requested my account transcript online and I'm gathering all my W-2s and pay stubs. It sounds like the most common issues are income allocation errors, dependent claiming conflicts, or problems with how tax credits were split between spouses. One thing I learned from reading everyone's responses is that you shouldn't panic about your 2023 refund yet - each tax year is processed separately. I was worried they'd automatically mess up my 2023 claim too, but it sounds like that's not necessarily the case. Don't give up! It's clear from this thread that many people have successfully challenged these incorrect calculations. The process takes time and documentation, but if their math is wrong, you can definitely get it corrected. Hang in there!

I'm so sorry you're dealing with this frustrating situation! LTR 916C notices are unfortunately common with injured spouse claims, and you're definitely not alone in this experience. Based on what you've described, it sounds like the IRS did their initial automated processing of your injured spouse claim (which got you the $700 refund), then conducted a more detailed manual review that resulted in the adjustment. This two-stage process often leads to these confusing "overpayment" notices. A few things to check that might explain the discrepancy: 1. **Income allocation errors** - Make sure your original Form 8379 correctly allocated all income between you and your husband. Even small mistakes here can significantly impact your entitled portion. 2. **Tax credit calculations** - Credits like the Earned Income Tax Credit or Child Tax Credit need to be properly split based on your respective incomes. If you have a dependent child, this could be a major factor. 3. **Dependent claiming conflicts** - Double-check that no one else (like an ex-spouse) claimed your son as a dependent, which would affect your eligibility for certain credits. I'd recommend requesting your account transcript from the IRS website to see exactly what they have on file versus what you submitted. This will help identify where the calculation went wrong. Don't give up - many people successfully challenge these determinations when the IRS makes errors!