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

[Yelloweggbasket]

Sad to hear that the IRS so screwed up.  

so to clarify you are saying I should request a tracer by the form.  On what amount?  Should I use the amount they reduced my 2021 recovery payment by?

thanks for the suggestion, I will send everything by by what ever means are available.  the form and a reply to the CP11 by mail; online transcripts as me or my husband; and keep trying to call during business hours

[NCperson]

yes, trace on the reduced amount.. good luck... when you find anything out, please post outcome!

[NCperson]

@Yelloweggbasket - i had one other crazy thought...... how much was your refund from your 2020 tax return? the 2020 refund and the 3rd stimulus payment came around the same time for many people.  Any chance what you thought was your tax refund was in fact that stimulus payment???????

[Yelloweggbasket]

No payments from the irs as I said before.  I paid in this year.

[Yelloweggbasket]

And paid in 2020.

[fanfare]

if your stimulus was prorated (phased out) in 2020 ,the phase out limit for EIP3 in 2021 was much lower.

This could have eliminated your eligibility for any amount.

being an accountant you can calculate your EIP3 yourself, all the formulas are posted on the IRS website.

[naveenrkumar]

Had the same issue!

Turbo tax desktop is unusable and scary. With this new issue, I'm taking my business to someone else!

The audit defense folks is a joke. No response at all after the initial template response.

[Mike9241]

what's scary is that so many people forgot they got EIP3

[NCperson]

@naveenrkumar  - normally the issue with an adjustment on the Recovery Rebate is that what you told TT you received for the 3rd stimulus does not match the IRS records of what they sent you.  It's not the result of a caculation error by TT, it's the result of what you entered vs. what the IRS records indicate. 

you are eligible for the stimulus or the Recovery Rebate credit but not both!

best to check your bank account records from March - May, 2021 to see if you actually received the stimulus.  

[Critter-3]

A reduction in your refund for the recovery rebate credit is most often caused by user error---when you were asked how much you received for the third stimulus check -- the one for $1400 per person sent out from March to May last year----did you enter the total amount correctly?   Did you use the amount from BOTH spouse's letters 6475?   Or did you say you did not receive the full amount and thereby put an amount on line 30 of your Form 1040?  If you received the full amount already then your line 30 should have been blank.   There should only be an amount on line 30 if you did NOT receive all of the 3rd stimulus.

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 $1400  per person on line 30 of your tax return?

If the IRS says you got $1400 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

[slim pickings]

Ours was "adjusted" by $8400.00, why do we do tax returns at all if they are just going to give us whatever they want? And yes, my income was under $150K also. This amount of money is huge to my family. They pulled the bait and switch with "COVID relief". 

[xmasbaby0]

@slim pickings What "bait and switch" occurred?    Did you receive $1400 per person in 2021?    Check your bank account for deposits---see if you received $1400 for six people sometime after mid-March of 2021.   If you received it, you cannot get that 3rd stimulus twice.    When the tax software asked if you received the 3rd EIP --- how did you answer?   Did you say no?   Was $8400 on line 30 of your Form 1040?

Does your IRS online account show that you received $8400 in 2021?  Check the accounts for EACH spouse--they assign half to each spouse on a joint return.  Each spouse would have been sent letter 6475 showing $4200 ---added together it would be the $8400 for a married couple and four dependents.

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.

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 stimulus or EIP check in 2021?   Did you receive it?   When you were asked on your tax return did you say no?   Was there $1400 on line 30 of your tax return?

If the IRS says you got $1400 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]

@slim pickings - can you provide more specifics? 

what is on Line 28 and Line 30 of Form 1040?

you were eligible for either the Stimulus or the Recovery Rebate , but not both.  (I am assuming your post is NOT about the Child Tax credit, but that could be your issue as well)

There was a point in the TUrbo Tax interview where you were asks how much you already received (typically last March - May, 2021).  When the IRS reviewd your return, they checked what you entered against the IRS records of what they know they sent you.  If those two figures did not match, they reduced Line 30 of Form 1040 by the difference.  That had the effect of reducing your refund.

Suggestion: Check your bank account from March - May, 2021 and see if the stimulus money was received.  if it is there, what is the 'bait and switch'? 

if it is not there, there is always the chance that what the IRS sent was "lost in the mail".  if that occurs, then your recourse is to submit a 'trace' to determine what the IRS did with the money. 

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

Does that help?

[Humbird]

If you qualified for a Recovery Rebate Credit in 2021 and did not get it, should like 30 be blank? 

[Humbird]

I don't think that is how the IRS is calculating it.  I did not get the 3rd stimulus payment so put $1400 on line 30 and the IRS calculates it like it was income.