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've been reading through this entire thread and I'm amazed at how helpful everyone's experiences have been! As someone who's currently dealing with my own LTR 916C nightmare, seeing all these different perspectives and solutions has been incredibly valuable. What strikes me most is how common this issue seems to be with injured spouse claims, yet the IRS notices are so poorly written that they leave you completely in the dark about what went wrong. The two-stage processing system explanation makes so much sense - no wonder we get refunds and then confusing "overpayment" notices weeks later. I'm taking notes on all the suggestions here: requesting both account transcripts AND wage/income transcripts, checking for income allocation errors, verifying dependent claiming issues, and making sure tax credits were split correctly. The tools and services people have mentioned (taxr.ai, Claimyr) also sound worth exploring if I can't get anywhere with the IRS directly. The most encouraging thing is seeing how many people have successfully challenged these calculations and gotten them corrected. It's given me the motivation to fight this instead of just accepting what feels like an unfair determination. Thanks to everyone who shared their experiences - this thread should be required reading for anyone dealing with injured spouse claim issues!