Accidentally claiming recovery rebate

[AngelC819]

I HAVE AN UPDATE FOR YOU ALL!

I filed January 29th, accidentally claimed the Recovery Rebate... My refund was delayed for 6 weeks exactly, today I checked the IRS site and it says they made changes to my return and I'll receive the remaining amount by March 21st!

[VolvoGirl]

@SamPull     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.

[ShellyAnn2]

Nakiaya28

same thing mines said 03/16/22 , i bank using a Chime card and i received my adjusted return in my account 03/11/22 around 2:00 pm so I am one happy camper. Good luck to you all if it’s just because of the recovery rebate you’ll be receiving your funds soon. But checking my transcript did really help me to what was going on!!  

[joaodemelo]

Filled my refund exactly 8 weeks ago tomorrow, January 24th made the mistake and all it says for awhile now in the IRS refund status is “We have received your tax return and it is being processed.” Does someone know another way of me kinda getting a date or at least more information about it, thanks 

[xmasbaby0]

@joaodemelo No.   If you made a mistake with the 3rd EIP it will delay your refund, but the IRS will recalculate and make the correction for you.   TurboTax cannot speed up the IRS for you.   Your only source of information is the IRS refund site.

[Ninefivehelp]

I made a mistake claiming the recovery rebate and when I realized it, I panicked and filed an amended return immediately. 
(I didn’t realize until later when I read more about it that the IRS would correct my mistake and I shouldn’t file an amendment.)

My actual refund should have been $1149 but I accidentally claimed $2549.

When I filed the amended return, it stated I owed $1400 back (because it was assuming my refund was in excess of $1400) even though I didn’t receive it yet.  And like a fool, I submitted bank info for the IRS to auto debit…

My original return was submitted 3/1 is currently still being processed but the IRS already debited $1400 from my account for the amended return!!! I didn’t think they would debit me until they processed the paperwork. 

I know i screwed up big time but just trying to understand what will happen?

When they process my original return, will they automatically correct the refund amount and reduce it by $1400? 
But then when they process my amended return, will they realize they already corrected the mistake and give me $1400 back that they withdrew from my account prior to processing my returns? 
How do I get my $1400 back?

[VolvoGirl]

I don't think anyone here knows.  So let us know how it works out for you.  Good luck.

[Crys060680]

Do you have access to your transcripts? You can check those online and see if there are any codes on them. 

[Nicholas32r]

So I filed my taxes on 2/10/22 & my refund status says delayed because I claimed the Recovery Rebate Credit.. So when I go to check my transcript there’s absolutely nothing there for this year. Is that because they haven’t yet started to process my tax return? Any help would be appreciated. Thanks.

[Ninefivehelp]

@Crys060680 Thanks for the suggestion!

What codes should I be looking for?

I checked my transcript and these are the codes related to my tax return for this year. I am not sure how to decipher everything. 

Some of them have dates in the future listed next them -  what does that mean?

150 - tax return filed cycle 20221005 (03-28-2022)

977 - Amended return filed 

971 - Amended return sent for processing 

971 - Notice issued (03-28-2022)

670 - Payment (this corresponded to the payment debited for my amended return) 

570 - Additional account action pending (04-04-2022)

[ShellyAnn2]

@Ninefivehelp @I’m not sure what to tell you about yours because it looks like you filed and amended return. If you go back and look at one of my post I shared a link that tells you what the cycle code numbers mean, now if I’m remembering correctly 05 means that your transcript will be updated every Friday. I did have  code 570 with a date of 3-21-22. So I thought I would receive my return then but when I checked the next Friday I had a code I believe was 846 giving me a refund date of today 3-16-22 I did receive a few days earlier. But you can always Google “what does code ——— mean on my transcript and it will tell you. That’s the only way I kept my sanity through this mix up. Good Luck 🍀

[Crys060680]

Did your refund amount change at all? Or is it the same? If it's the same, that's a good sign. You'll see account balance towards the top of your transcript. Any number with a minus sign is a credit(refund due to you). The payment that they debited from you may be showing as a credit or the balance could be that amount plus the amount of the refund from your amended return.

If your refund amount changed and you have codes 570 then 971 with different dates, that means there's a hold on your refund and it may not update as quickly because the IRS is still processing and will likely take more than the normal 21 day refund processing timeline.

Since your dates are different, this does not apply to you currently, but I thought I'd share this information for future reference or anyone else reading. When those codes have the same dates next to them, that means there was an auto adjustment to your refund and that if there are no issues, you should receive payment within 6 weeks.

Since you are 05 cycle, there will be an update late Thursday/early Friday morning. Check your transcripts again on Friday. Hopefully you will have a new code of either 571 or 572, which means that the issue was resolved. Once resolved and if there are no other issues, there will be also be code 846(refund issued) with a date.

Keep an eye out for the letter they sent. This will tell you what changes were made or if they need any other information from you. You may get your refund before you even get that letter though. It takes forever for the system to actually get them printed and sent out.

[Cl545]

Hey, same thing happened to me. I thought I didn’t receive the third payment but I did. It says my refund is still being processed. Did you get your refund yet?

[xmasbaby0]

@Cl545

  You just have to wait for the IRS to fix your mistake.   By answering incorrectly about the stimulus amount you received you put an amount on line 30 of your Form 1040.   The IRS checks that line.  They know how much they sent to you.   They will reduce your refund by that amount.   This will delay your refund so expect a wait.

[JP134]

I accidentally claimed the recovery rebate and originally expected a refund.  However, I actually owe tax.   Should I send the tax that I believe is due to the IRS before 4/18/22 using a 2021 estimate tax payment voucher?  Otherwise,  won't under payment and late penalties be charged.

Thank you