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

[VolvoGirl]

@moleffall 

That is the list of generic reasons they give if they changed the Recovery rebate credit on line 30.  How much is on 1040 line 30?

Did you not get the 3rd Stimulus payment?  Or qualify for more?  Line 30 is only if you didn't get the full amount or qualify for more.  The IRS shows they already sent it to you.

Double check your bank statements and Check your IRS account (both accounts if married)

Your Online Account | Internal Revenue Service

[WisMom22]

I also received a CP11 saying that I calculated my tax wrong and that I owe an additional $898, which is EXACTLY the amount calculated by TurboTax on the Recovery Rebate Credit Worksheet.  Essentially, the IRS notice seems to be saying that I'm not entitled to that credit.  I have reread that worksheet about a hundred times now, and as I see it, we (married filing jointly with and AGI below 150K) should be entitled to $2800, but back in March 2021, we received $1902.  I am also unable to get through to the number provided in the letter.  I also contacted TurboTax, but unlike in prior years, where someone was able to advise me on it, I am being told that I need to talk to the IRS or a CPA.  Is that the same?

[WisMom22]

I also assume that the average person just says "oh, no, I need to pay more" and does, but I am also convinced that, as long as TurboTax calculated it right, I don't owe what they say I do.  Hang in there.

[fanfare]

When the IRS backlog eases up in six months or so, you will be able to contact someone at IRS who can explain to you what happened.

[AmyC]

Have you checked to see if the IRS thinks you or your spouse already got the money? If so, you need to trace it.

First, determine if you received one at Third Economic Impact Payment. Check your bank records and verify you did not receive it already.

If the IRS thinks you got it and you are you did not, then you will need to request a payment trace, call 800-919-9835 or fill out IRS Form 3911, Taxpayer Statement Regarding Refund.

@WisMom22

[WisMom22]

The CP11 notice is very specific that we need to respond by June 17 or we lose any chance of arguing that their higher amount is wrong, and we will owe that amount even if it's incorrect.  The notice also states that connecting by phone is preferred over sending a letter.  The letter also states that the payment needs to be made by May 9 or it will be subject to interest.  So 6 months isn't an option!

[WisMom22]

AmyC,

If you are replying to me (WisMom22,) we did receive a third economic impact payment of $1902.  I have verified that in our bank account.  The $898 that the CP11 letter says we owe is the difference between the $2800 full payment (which the IRS worksheet calculates we are entitled to based on our AGI) and the amount we actually received.  I can't find any reason why the IRS would think we are only entitled to $1902, nor do I find any indication that they believe we received $2800, which we did not.  I will keep trying to contact them, and if I can't soon, I will mail them a letter.  I wish that TurboTax would talk me through this to affirm whether the software has filled in and calculated the worksheet info correctly.

[cyclops2020]

To my way of thinking turbo tax dropped the ball on this and should refund my upgrade charge. The wording was very unclear and I am on SS and wtf, the government gives me a check then takes it back with taxes? 

[cyclops2020]

Why do you take full responsibility for this? Judging by how often this occurred to so many people I think you are far too forgiving.

[scconne1]

Well first, I don't know if this happened to anyone else so I can't make that claim. Second, the Turbo Tax person I spoke with was very sympathetic to my situation and did agree to mention this to her supervisor to maybe avoid future questions like this one. Bottom line, I'm responsible for making sure I do my taxes on-time and correctly, so when I saw the $1,400 credit on line 30 I should have questioned why that was and investigated it. I send the correct amount in to the IRS which is always a good thing to do...

[LOD8]

I have the same issue... I've checked as well and I don't believe I owe the money either ...not sure what to do... 

[missimaui]

I am in the same exact situation I added the correct amount that I received per the letter from the IRS but they took that amount out of my return saying that I made an error . 

[missimaui]

So you are saying that line 30 should be blank ? It states recovery rebate credit. Isn’t that where we put what we got ?

[DoninGA]

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@missimaui wrote:

So you are saying that line 30 should be blank ? It states recovery rebate credit. Isn’t that where we put what we got ?

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No.  If you received the 3rd stimulus payment then Line 30 should be blank (empty)

[LOD8]

Thank you for explaining this. I went back and looked and we were sent the full amount last March 2021. But I agree they confused us by sending 2 letters,  one for each tax payer, instead of one per tax return ,with the full amount sent. This would have saved a lot of people from answering incorrectly, thus all this confusion and having to pay now. 

ugh now I need to find $700....