IRS Notice CP11 says I owe Recovery Rebate Credit (RRC) Back!

[jennyebean]

We only got $4200 of the $5600 we should have received per the IRS (being $1400 x 4 people here). So on my line 30, it put the difference between what we should have gotten, minus what we did receive total. 

But now I got a letter saying that line 30 is wrong and I owe the $1400 listed on Line 30, + interest, to the IRS. 

UGH!

[mjdragonfly1]

The same thing happened to me, and I've seen complaints in other forums. My husband and I received a total of $2800 in stimulus payments, and I had no intention of trying to get more via the Recovery Rebate Credit, but due to the way the questions were asked and answered, a claim for $2800 for the rebate credit was added to our return which I did not realize until we received a notice from the IRS today saying we owed $2800.

[fanfare]

"which I did not realize until we received a notice from the IRS"

@mjdragonfly1 

Always print a copy of your completed tax return for your records, and review it carefully before e-Filing.
You will need it if you are audited by the IRS, or to amend if a TurboTax update changes your return or for any other reason,

AND, to find your AGI next year.

[VolvoGirl]

@mjdragonfly1   Are you ok now?  You understand why you owe 2800?  Line 30 is only if you didn't get the full amount or qualify for more.   You were supposed to enter the 2800 you already received.  Did you say you didn't get the 3rd Stimulus payment?

[WisMom22]

I thought that is what happened to us, too (different amounts but the same issue,) and I FINALLY got through to the IRS and they told me that the last portion came to us in a CHECK.  Since I had never gotten any IRS form that told us the total, I didn't remember the check.  But I went back to our bank statement and found that it was deposited on about the day they said we received it.  Is it possible that you actually DID receive the last $1400 in some other form?  It is hard to get through to them, but try calling the number on the notice 4 or 5 times a day, and you will eventually get through.  They will know what they sent you.  If you really only got $4200, then you filled out the form correctly.

[Critter-3]

If the IRS has reduced your refund, they will be sending you a communication explaining why they reduced the amount of your refund.  Once you know the nature of the problem, you may be able to correct the problem by amending your 2021 Federal tax return.

If you did not receive $1,400 for the third stimulus payment, the IRS may think that you were already issued the third stimulus payment.

At your IRS online account, you can find whether a payment was issued to you that you did not receive.  You can also find this information on your tax transcript.

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.

[mikey123486]

my wife only got 2 checks, one for 600 and one for 1400, but that's it!! we always file separately, but neither one of us recieved any letter from the irs.  I got one from the state saying they are intercepting any of my stim payments for child support.

[mikey123486]

none of what the irs states in their letter is accurate. it states my wife claimed someone who wasn't eligible, made more than 150k, got a 3rd stim check when she only got 2, last name and ss # doesn't match up, even though its the same name and ss # she has used in the past.

[Critter-3]

@mikey123486 

That  letter has a laundry list of possible issues but the only one that applies is the Stimulus credit for $1400 on line 30 of the form 1040.  You said she got it in advance  then she cannot also get the credit on the return ... that is what the IRS corrected.  

The first 2 stimulus payments ( 1200  sent out in 2020 and the 600 one sent out in early 2021) were  reconciled on the 2020 return ... so if she did not get the first 1200 payment look at the 2020 return line 30 ... did she get the credit on that tax return ?    If not the 2020 return should be amended.  

[VolvoGirl]

The 1400 WAS the third Stimulus payment.  If she didn't get the 1st or 2nd one that went on the 2020 return.  It's not asking if you got 3 checks but only the 3rd round check.

STIMULUS PAYMENTS

EIP1 The first Stimulus payment was 1,200 for each spouse and 500 for each dependent under 17.  Came out in spring of 2020.

EIP2 The second Stimulus was 600 per person and dependents under 17. The 2nd stimulus checks started going out at the very end of December 2020 and continued into January/Feb 2021.

The first 2 Stimulus payments went on your 2020 return even if you got the second one in Jan/Feb 2021.

EIP3 The 3rd Stimulus payment started going out in March 2021 and is for 1,400 for each person listed on your tax return, no age limit. The IRS used your 2020 (or 2019) return to send the checks out fast. If your 2021 return changes and you qualify for more you can claim the extra as the Recovery Rebate Credit on 1040 line 30. But line 30 is only if you didn't get the full amount or qualify for more. Not the amount you already got. The IRS also sent out letter 6475 to tell you how much they sent you . If you are married then each spouse should get a letter for half.

[marcisikoff]

I use ProSeries , but Google led me to Turbotax forums.

Issues is the same with a client:

They received $2400 in EIP 1/2 and got a 1444-C for EIP3 to claim the 3rd, then get an CP11 notice to get it back.

They have no dependents, are retired with AGI well below the $150k and my understanding is that EIP 1 and 2 were to keep and 3 was to keep if you satisfied all the 2020/2021 AGI criteria which they did. No other client (I have 62 of them) had this happen.

[VolvoGirl]

Tell them to Double check their bank statements and Check IRS account (both accounts if married)

Your Online Account | Internal Revenue Service

The IRS shows they sent it to them.   A lot of people forgot they got the deposit last March - May 2021.  Or missed one payment and entered the wrong amount.  Then when the IRS reduces their refund and they check their bank accounts they have been finding the payments.

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...

[Monty3]

Great answer, but now what do I do about it? Refile? My AGI is below the $150,000 filing jointly. I did receive the stimulus for both my wife and I. I should not have to pay it back.  What do I do about?

[VolvoGirl]

It is not taxable and you aren't paying it back. Your 2021 return starts out by assuming you didn't get any Stimulus payments so it gives you credit for the full amount and your refund was too high. Then near the end you enter how much you actually got so it only gives you the difference if any. So you don't get it again.

Look at your return. The Stimulus payments do not show up anywhere as taxable income so you are not being taxed on it. And they are not being subtracted anywhere on your return either.

If you already got the the 3rd stimulus payment last year then line 30 should be zero.  Line 30 is only if you didn't get the full amount or qualify for more.    So if it was on line 30 the IRS took it off.   You tried to claim it twice.  There is nothing you can fix or do.   Just take your tax return and cross off line 30.  Then refigure the math to the end of the return.  

[NCperson]

@marcisikoff - what is the real issue?  for all 3 EIP's there was no requirement to send back fund if you got too much (in other words Line 30 can not be negative)

EIP 1 was $1200, EIP 2 was $600 and EIP 3 was $1400

so on the 2020 tax return, joint filing client benefit was $3600 LESS what they received in stuimulus payments for the 1st two stimulus payments

on the 2021 tax returnm joint filing client benefit was $2800 LESS what they received in stuimulus payments for the 3rd stimulus payments.  What I have seen if for joint filers, they EACH received Letter 6475 indicating that they were sent $1400....and the taxpayer didn't realize they were to add the two letters together to determine how much they truly received. 

on the 3rd stimulus, how much did your clients tell you they received?  I wonder if they told you $1400 (and showed you the ONE 1444-C letter to prove it) and they really received $2800.