Got a letter from IRS for 2021 tax stating Schedule 3 is incomplete or missing from your return. Complete the schedule with information that supports $xxxx on line 32 of Form 1040.
I see line 32 is addition of 27a and 28 through 31 and also note that this amount $xxxx is in line 30 "Recovery rebate credit. See instructions" of 1040. I see this section is related to stimulus check? If so i dont think i qualify for this but somehow got added when i did it online. How should i proceed?
You can file an amended 2021 return to unclaim your 2021 Recovery Rebate Credit.
First, check with the IRS to verify whether or not you received a payment. If you claimed the credit but IRS says they sent it to you, your third stimulus may have gotten lost.
Go to Your Online Account to check whether you actually received a payment. See Get My Payment.
If a payment was sent but never received, you can request a payment trace.
See: Topic J: Payment Issued but Lost, Stolen, Destroyed or Not Received
If you need to amend your 2021 return see How do I amend my federal tax return?
To change your stimulus in your 2021 return:
If your stimulus payment looks correct, send a copy of the Recovery Rebate Credit Worksheet from TurboTax showing how Form 1040, line 30 was computed.
You can file an amended 2021 return to unclaim your 2021 Recovery Rebate Credit.
First, check with the IRS to verify whether or not you received a payment. If you claimed the credit but IRS says they sent it to you, your third stimulus may have gotten lost.
Go to Your Online Account to check whether you actually received a payment. See Get My Payment.
If a payment was sent but never received, you can request a payment trace.
See: Topic J: Payment Issued but Lost, Stolen, Destroyed or Not Received
If you need to amend your 2021 return see How do I amend my federal tax return?
To change your stimulus in your 2021 return:
If your stimulus payment looks correct, send a copy of the Recovery Rebate Credit Worksheet from TurboTax showing how Form 1040, line 30 was computed.
just reply to the letter in writing stating that the tax software put the rebate request there and it is incorrect.
IRS will then proceed with adjusting your tax return.
Thank you @ErnieS0 This helped me a lot. I understand that EIP was never paid to me and also based on the AGI i am eligible to claim the recovery rebate.
I was able to download the return transcript and was able to find the schedule 3 as well as the Recovery Rebate Credit Worksheet. Based on the message from IRS posted on my original question, would these two forms be sufficient enough to be sent as a reply to this inquiry?
Thanks Again! This saved a lot of time.
Best Regards
Did you mail in your 2021 tax return and leave out that Schedule?
"Missing forms" is not supposed to happen using e-File.
@fanfare that is correct. e-File didnt work for me due to a mismatch of information with IRS. By the time i fixed it, turbotax didnt had the efile option removed for 2021 taxes