ERROR in Turbo Tax Calculations for Federal Economic Stimulus Payment Due To TT FORM "Recovery Rebate Credit Worksheet".

[xmasbaby0]

@kgibb10 The 3rd EIP payments began going out in mid-March of 2021--not February.   

https://www.irs.gov/payments/your-online-account

[johnmatthews2701]

I am in support of everyone who has been a victim of this Turbo Tax MISCALULATION.  Cost me and additional $6500 in tax and penalties and interest.  Does not look like I will be using Turbo Tax again.

[NCperson]

@kgibb10 - if in fact you received the 3rd stimulus for $2800, you were asked during the TT interview process how much you received!  if you did not answer that question accurately, that is the reason for the error - it's not the TT calculations; it's a result of what you entered! 

Also, there is "no way" you received the 3rd stimulus payment in Feb, 2021.... Congress did not pass the law authorizing the 3rd payment until March 11, 2021. 

@xmasbaby0 - while I appreciate your point about receiving $1400 was a memorable event for people, I did over 200 tax returns this winter (as a volunteer) and was shocked at the number of people who simply could not remember receiving the 3rd stimulus - we insisted they check their bank account and not take their word for it..... yup, they received it! 

[NCperson]

@johnmatthews2701 - 'miscalculation' means that the math (additions, subtractions, multiplications, divisions) is incorrect. 

but if the numbers entered are incorrect, then of course the result is incorrect, even if the math is correct 

from what I've seen across 100's of posts on these boards, the math for the Recovery Credit and the Child Tax credit is correct. 

But if the user doesn't enter the amount they already received for these benefits correctly, then the result is incorrect even if the math is correct.

TT is responsibile for the math

the user is responsible for the numbers entered 

[kgibb10]

Stand Corrected the date was 3/17 per my bank

I did not use any TT staff assistance during filing....

But it still doesn't explain why the software came back to me during processing and stated I had another credit due and applied it automatically to line 30

I can't be alone in this experience with all the other clients reporting the same issue........

[NCperson]

<<But it still doesn't explain why the software came back to me during processing and stated I had another credit due and applied it automatically to line 30>>

because the software was dependent on the amount YOU told it you had already received....... 

Line 30 is simply $1400 times the number of people listed on your tax return LESS what you had already received.   THe result, but not less than zero, appears on Line 30. 

The IRS knows what you received (since they are the ones that sent it to you).  If you entered a number representing what you received and it did not match the IRS records, then the IRS adjusted by the difference. 

the issues on this board - and its every single one on this topic - reflect the user not entering a number that matched the IRS records.  TT wouldn't know what you received; it was dependent on the user entering the accurate number. 

[cep1021]

The IRS told me that I was not eligible to receive a rebate due to my income.  TT calculated a rebate for me that I was not entitled to.  That is why I want TT to take me off their mailing list.  You insult me with your response.  This conversation with you is over.

[Katiebug1018]

i recieved a letter from the IRS stating there was a mistake and i owe $2800.00 from the stimulous recovery act i dont understand what happened can you explain? and what recourse do i have?

[xmasbaby0]

@Katiebug1018

LOTS of people have made mistakes this year with the recovery rebate credit by "forgetting" that they received the $1400 per person stimulus checks last year.  They answered no to the questions for the  recovery recovery rebate credit and put the $1400 per person on line 30 of their returns.  But you cannot get it twice, so the IRS removes it when it is there by mistake.    If you already received $2800 in 2021 your line 30 should have been blank.

Try checking your online account with the IRS

https://www.irs.gov/payments/your-online-account

Does the IRS show that you received a $1400  per person stimulus or EIP check in 2021?   Did you receive it?   When you were asked on your tax return did you say no?   Was there $2800 on line 30 of your tax return?

If the IRS says you got $1400  per person last year but you did not receive it you can have it traced.

LOST THIRD STIMULUS CHECK

https://www.irs.gov/newsroom/questions-and-answers-about-the-third-round-economic-impact-payment-top...

If you need to trace a payment that the IRS says has been issued to you, mail or fax a completed IRS Form 3911, Taxpayer Statement Regarding Refund.

[NCperson]

you were eligible for the 3rd stimulus or the Recovery CRedit, but not both.

During the interview process, TT asked you how much you had received in 2021 (march - May, 2021).  It also referred you to Letter 6475 that detailed what the IRS sent to you.

if you entered a number that did NOT match what the IRS knows it sent to you, it had the effect of correcting Line 30 which in term reduced the refund / increased what was due.

Line 30 is simply the number of people listed on your tax return times $1400 LESS what you already received, but not less than zero. 

The biggest error I see on these boards is someone who filed "joint" and did not understand that Letter 6475 was separately sent to each spouse and the two letters were to be added together

Suggest checking you bank account records from March - May. 2021 to be comfortable that you did indeed receive $1400 for eachy person listed on your tax return.

[dennisbaum]

Unfortunately, I think I am in the same boat you is in, and I think the boat has sprung a $2800 leak. While working through TT, I'm fairly sure I reported I hadn't received the $2800 (there were several checks that were sent, and it was all confusing) and in fact, I did receive the check as per the IRS. Therefore, I do owe the IRS $2800 plus $9.53 interest.

[WeThePeople1]

This same thing occurred to me as well.

I rechecked my bank statements and still not showing.

[Traillens]

Same problem here. I couldn't believe we were due a refund of $2000.00. Trying to triple check and TT will not let me get back to the Question Section about the Economic Stimulus Payment to check my entries.

This is messed up!

[xmasbaby0]

@Traillens The questions about the stimulus checks and recovery rebate  credit are in the Federal Review section.   If you already filed your return with an incorrect answer, the IRS will make the correction for you -- you do not have to do anything to correct it, except prepare for a processing delay and a reduced refund.

[xmasbaby0]

@WeThePeople1 Check your bank records for the 3rd EIP payment which went out starting in mid-March of 2021.   You can also check your online account with the IRS to see what the IRS shows for you.

https://www.irs.gov/payments/your-online-account

https://www.irs.gov/newsroom/questions-and-answers-about-the-third-round-economic-impact-payment-top...

If you need to trace a payment that the IRS says has been issued to you, mail or fax a completed IRS Form 3911, Taxpayer Statement Regarding Refund.

Updated IRS FAQ about recovery rebate credit

https://www.irs.gov/pub/taxpros/fs-2022-27.pdf