2020 Stimulus claimed on 2020 tax filing applied to back taxes

Forum|Forum|5 years ago
March 26, 2021
2 replies
18 views

A portion of my refund included the amount that I was due from the 2020 stimulus payment, however, the IRS sent me a letter stating the full amount of the refund (including the stimulus) has been applied to back taxes. Even though I thought that since I am on a repayment plan that is in good standing, the IRS would not take my refund to apply to past due taxes, but I guess I can understand this, but I certainly did not think they would take the stimulus amount and apply it towards back taxes, and I did not think they could do this. Please advise. Thank you.

xmasbaby0

Level 15

Sorry--but yes, they can take that recovery rebate credit for back taxes. A credit can be applied to any tax owed including the back tax you owe, even when you are on a payment plan. If you are eligible for the 3rd stimulus they will not take that.

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