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

[xmasbaby0]

@Humbird No.   Line 30 is not being taxed as income.    Line 30 is the recovery rebate credit, which you can receive if you did not receive the 3rd stimulus check.   Line 30 calculates down to the refund on line 35a or is applied as a credit against the tax you owe which is on line 37.

[xmasbaby0]

@Humbird You posted to a very long thread that has multiple posts from users who received an IRS notice.   Did you receive such a notice?   Your questions have been about the recovery rebate credit for 2021.   If you did not receive the 3rd stimulus check in 2021 then you can get the recovery rebate credit on line 30 of your Form 1040 when you prepare a 2021 return.   But if you really already received that stimulus check, the IRS knows it and they will reduce your refund by the amount on line 30 when they review your tax return.   So you have to make sure of the answer you give when you are asked if you received that stimulus check.   Check your bank account for deposits of $1400 per person sometime after mid-March of 2021.  And check your online account with the IRS to see if the IRS shows that it was sent to you.  If they sent it and you did not receive it you can have it traced.

https://www.irs.gov/payments/your-online-account

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]

@Humbird =is it NOT oncome - look at Line 30  - that is part of the 'payment section'; Congress is paying some of your taxes, which has the affect of increasing your refind. 

[Humbird]

No, I did not receive the 2021 stimulus payment of $1400.  I tried to call many times and cannot get through.  I will try the form you attached.

[xmasbaby0]

@Humbird We still cannot tell from what you have said here whether you filed a 2021 tax return.   If you filed a 2021 return, did you have the $1400 on line 30?   Did the IRS reduce your refund and not include the $1400 with your refund?   Please explain clearly.

[NCperson]

@Humbird BEFORE YOU DO ANYTHING... PLEASE ANSWER THESE QUESTIONS - they are SIMPLE

1) what is on Line 30 of Form 1040? 

2) did the letter from the IRS reduce your refund by $1400? 

simple

[Humbird]

1) what is on Line 30 of Form 1040? - Yes

2) did the letter from the IRS reduce your refund by $1400? - Yes

Thanks!

[NCperson]

@Humbird - while you think you did not receive the $1400, the IRS records are they sent it to you.

1) go back and review your bank statements closely for the period of March - May, 2021.  See if there is a $1400 deposit.  If yes, you got the stimulus payment then the IRS adjustment is correct.

2) if you do not find the $1400 deposit, then call 800-829-1954 and complete the automated system prompts so that the IRS can track down what happened to the payment. It'll probably take a few weeks for them to respond.

https://www.irs.gov/faqs/irs-procedures/refund-inquiries/refund-inquiries-0

that is all that needs to happen. Make sense? 

[HERBMOM]

Wondering if anyone has gotten this issue resolved. I too received a notice saying we owe $700... can't get any help from the IRS. Got through twice and got hung up on in the middle of the conversation. We are a couple filing jointly, made under $140,000. Our letter from the IRS said we got $2100 in stimulus (must have been a check because I can't find it anywhere in our bank records.) Line 30 shows we received $700 credit since we didn't get the full $2800 payment in 2021. IRS lady on the phone said we received $4200! I know that's not true. We have no dependents and literally every stimulus payment we have received since 2020 has gone right back to the IRS. Last year this issue cost us $2400 because we didn't receive it until after we had filed our taxes. I wish they'd just stop sending payments if it's going to cause us nothing but trouble! Also, on my letter (CP11) the amount it said we paid in doesn't match what they took out of our bank account. It's off by almost $1,000! 

[Critter-3]

"OUR letter from the IRS" said they sent 2100  is not right ... the IRS sent each spouse their own letter for 1/2 the amount they were sent.  So if one letter said 2100 then the other letter you did not get also said 2100 thus 4200 combined.  This would mean you had 3 people listed on the 2020 or 2019 return that they used to send out the third payment on  but if you were only eligible for 2800 on the 2021 return then you get to keep the excess.  What you did is only entered the 2100 instead of the 4200 or even just 2800 so you incorrectly got a 700 credit on line 30 that the IRS disagrees with.   So review your bank records for the IRS EIP 3 deposit starting in March of 2021 ... it may not have come in one deposit. 

[VolvoGirl]

@HERBMOM   Yes they show they sent you 4200.  The letter you got was only for one of you.  They sent each spouse a letter for half.   So 2100 x 2 = 4200.  Did you claim a dependent on your 2020 or 2019 return?   If you got a Stimulus payment for a dependent you aren't claiming for 2021 you don't have to pay it back.

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

Your Online Account | Internal Revenue Service

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...

[HERBMOM]

We may have claimed a dependent in 2019, but not since then (our youngest and only child living at home just turned 22). We didn't get anything for her in the previous stimulus payments. We must have received a check because there are no records of any deposits from the IRS in 2021 in our bank records...we did have to pay in for the last 3 years.

[HERBMOM]

My husband is going by the bank to see if he can find out if we cashed a check from the IRS at any  time in 2021...we can't find anything incoming in our bank records...only what we paid out. 

[NCperson]

@HERBMOM - just to help simplify some of this thread, here is how the rebate is calculated

1) if there are just 2 of you on your tax return, then you were entitled to $2800.  It's that simple

2) if you received more than $2800, you weren't entitled to anymore (and you don't have to return anything,,even if you received more than $2800 in stimulus) and Line 30 should have been zero. 

3) you are looking for a deposit of $4200 and most everyone received that in March - May, 2021.  The IRS records are they sent you the money, because they adjusted your return

4) if you find no record of receiving the money, you must call 800-829-1954 and request a trace through the automated system.. The problem is the IRS sent you the money and you don't have record of it. That has nothing to do with your tax return at this point; that is between you and the US Treasury as you say you don't have it and the Treasury says you do! 

[Disit6week]

the billing summary provided does not apply. paid tax bill to prevent interest but disagree with IRS assessment