Economic Recovery Credit

[neald]

Turbo Tax qualified for the $1400 credit but the IRS says I didn't qualify and must repay it with interest.  Which is correct?

[VolvoGirl]

They say you don't qualify for the Recovery Rebate Credit because the IRS shows they already sent it to you.

1,400 is the amount of the 3rd Stimulus payment.  Did you already get the Stimulus payment they sent out last year starting March 2021? The IRS has records that show you were sent the 3rd stimulus payment so they removed the $1,400 Recovery Rebate Credit.

 Do you have 1,400 on 1040 line 30?  You might have tried to claim it again.   Line 30 is only if you didn't get the full amount or qualify for more. 

Did you get IRS letter 6475 saying what they sent you?  If you didn't get the IRS letter 6475 saying what they sent you then check your bank statements and check your IRS account to see when and what they sent you.

Your Online Account | Internal Revenue Service

If the IRS thinks they sent it to you but you didn't get it request a trace for a missing third Stimulus payment

https://www.irs.gov/newsroom/questions-and-answers-about-the-third-economic-impact-payment-topic-j-p...Your Online Account | Internal Revenue Service

[NCperson]

simply - you were eligible for the 3rd stimulus or the Recovery Credit but not both.

there was a point in the TT interview where it asked whether you had received the 3rd stimulus.  if you said "no" but the IRS records indicate they sent it to you, the IRS would have adjusted Line 30 of Form 1040.  

DId you receive the 3rd stimulus? look at your bank account from March-May, 2021 - DO NOT RESPOND FROM MEMORY

if you received the 3rd stimulus the IRS is correct. 

if you did not receive it, then you'll have to complete and submit the tracer form since the IRS believes you got it. 

https://www.irs.gov/pub/irs-pdf/f3911.pdf