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

[VolvoGirl]

@Disit6week   What happened?  We can probably help you figure it out.  Did the IRS change your return and send you a bill?  

The 2 most common reasons this year is you entered the wrong amount on line 30 for the Recovery Rebate Credit (3rd Stimulus payment) or line 28 for the Child Tax Credit.  Those lines are just if you didn't already get the full amount or qualify for more.  The IRS knows what they already sent you.  

A lot of people answered the questions wrong and tried to claim the credits again.  Double check your bank statements and Check your IRS account (both accounts if married)

Your Online Account | Internal Revenue Service

[NCperson]

@Disit6week 

1) what was the EXACT amount of the IRS adjustment?

2) what did you have on Line 28 for Form 1040?

3) what did you have on Line 30 of Form 1040? 

[Humbird]

1) what was the EXACT amount of the IRS adjustment?  $1400

2) what did you have on Line 28 for Form 1040?  blank (0)

3) what did you have on Line 30 of Form 1040?  $1400

[NCperson]

@Humbird - 

during the interview process, Turbo Tax asked you how much you received for the 3rd stimulus.

if you answered 'zero' then $1400 ends up on Line 30, since you are entitld to the Recovery Rebate Credit (which is the same thing as the 3rd stimulus).  You are entited to either the 3rd stimulus or the Recovery Rebate Credit, but not both

But the IRS records indicate that they alreasdy sent you the $1400.

1) check you bank account statements from last March- May, 2021.  You should see the $1400 direct deposited. 

2) if yes, then the IRS adjustment of you tax return is correct.

3) if no, then the problem is the IRS records say they sent it but your records don't show you received it.  You'll have to complete the 'tracer' form and submit. 

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

make sense?

[MrMoto]

Just received the same letter.  Big problem is they list every possible way that they changed the information on our return without listing THE reason for the denial of the Recovery Rebate Credit.  A) Social Security Numbers are the same we have been filing with the past 22 years, with past 13 as married filing jointly; B) do not have any qualifying dependents; C) No qualifying dependents exceeding age limit since there are NONE; D) Adjusted Gross Income is under $150,000 as married filing jointly; E) sorry, amount WAS computed correctly by TurboTax Software.  Where did we go wrong?

Do you HAVE to have qualifying Dependents?  No mention of this.  Please explain, IRS.

[Critter-3]

That is a generic LIST of possible issues ... the RRC is considered a math error ... last option on that list.  

[xmasbaby0]

@MrMoto

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.  The IRS sent letter 6475 showing that you received the 3rd stimulus check. 

It is very important that if you filed a joint return—-the IRS sent letter 6475 to EACH spouse.  You had to enter the total amount received.   Many people misunderstood and entered only the amount from one of the letters.

Try checking your online account with the IRS (and if you filed a joint return—check for BOTH of you)

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  per person 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.

[MrMoto]

The IRS is in need of extra monies.  Looks as though they kick back many of the returns with the reasoning that some will just give in and pay them an additional stipend.  And they do not give the specific reason, they list the 5 instances where the Rebate Credit is denied, when none are applicable.  Maybe I should go to work for the IRS to stop the B.S. from being propagated. (continued)

Sending in my reply tomorrow.  

[NCperson]

@MrMoto - maybe I can save you some time.

1) what is on Line 30 of Form 1040?

2) how much did you receive for the 3rd stimulus payment in March - May, 2021 (please check your bank statments).

if you received the $2800 (I think you stated you filed joint), then Line 30 should be zero.... 

[Doug Kariker]

I received a CP1. I cannot figure why they amended my return. Something about Recovery rebate credit. I went from a $800. 00 plus refund to owing 1900. How can that be? Turbo Tax assisted me with my return. I paid a premium to have live assistance while doing my return. 

[xmasbaby0]

@Doug Kariker

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.  The IRS sent letter 6475 showing that you received the 3rd stimulus check. 

It is very important that if you filed a joint return—-the IRS sent letter 6475 to EACH spouse.  You had to enter the total amount received.   Many people misunderstood and entered only the amount from one of the letters.

Try checking your online account with the IRS (and if you filed a joint return—check for BOTH of you)

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  per person 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...

[NCperson]

@Doug Kariker - 

1) what is on Line 30 of Form 1040? is that the same amount as the IRS adjustment? 

2) you were eligible for $1400 for each person listed on your tax return LESS what you already received for the 3rd rebate in March - May, 2021.  

3) How much did you receive in March - May, 2021? CHeck you bank statements - please do not do from memory. 

4) what the IRS is saying is that the amount you said you received in Turbo Tax is not the same amount that the IRS records as having sent to you. So they adjusted your return accordingly.

5) if the number of people on your tax return times $1400 LESS the amount you received in March - May, 2021 is less than or equal to zero, then Line 30 should be zero, not the number you have on your tax return.   That is why the IRS adjusted your return.

make sense? 

[Doug Kariker]

If I did not report the credit, would my tax liability go from a $800 refund to owing $1900. That is a big swing. Would filing an amended return lower this calculation? Since I was assisted on my return will Turbo Tax assist me with an amended return if it becomes necessary?

[NCperson]

@Doug Kariker - there is no amendment ncessary - the IRS has already made the adjustment...see my post above.  a swing of $2700 (probably really $2800) is certainly possible. 

[xmasbaby0]

@Doug Kariker What was on line 30 of your Form 1040?   Did you in fact make the mistake of saying you did not receive the $1400 per person and have $2800 on that line for a joint return?  If you already received the $1400 per person in 2021, then the IRS reduced your refund and it caused you to owe instead getting that refund.  And--yes--when you subtract $2800 it is a big difference.  You do not amend for that---the IRS already made the correction for you.