Got a letter from IRS with Schedule 3 is incomplete or missing. Complete the schedule with info on line 32 of form 1040.

[sn30]

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?

[ErnieS0 · Accepted solution]

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:

• Type "stimulus" in Search in the upper right
• Select "Jump to stimulus"
• TurboTax will show you the amount of stimulus you’re entitled to and ask whether the amount matches what you got
• Say Yes or No. If No, enter the amount you actually received or is shown in your IRS account.

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.

[fanfare]

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.

@sn30 

[sn30]

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

[fanfare]

Did you mail in your 2021 tax return and leave out that Schedule?

"Missing forms" is not supposed to happen using e-File.

@sn30 

[sn30]

@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