Is the recovery rebate credit causing return delays?

[ksepagency]

I e-filed Feb14th and got an accepted status by the 16th. A lot of people around me have already gotten they return deposited but mine still shows as processing. The 21st day would be March 9th. I did not get the second stimulus so I applied for the recovery rebate credit and I'm wondering if people who are claiming this rebate are experiencing more delays as opposed as those who aren't? Usually my refund is deposited quite fast the past few years.  

[DawnC]

If you e-filed, those returns are being processed as they normally are even those with the recovery rebate credit.  Keep in mind, however, that if you have the EIC or ACTC on your return, those returns started being processed this week, due to the Path Act.   

Under the PATH Act, the IRS cannot issue a refund involving the Earned Income Tax Credit (EITC) or Additional Child Tax Credit (ACTC) before mid-February. The law provides this additional time to help the IRS stop fraudulent refunds and claims from being issued, including to identity thieves.

The IRS anticipates a first week of March refund for many EITC and ACTC taxpayers if they file electronically with direct deposit and there are no issues with their tax returns.  This would be the same experience for taxpayers if the filing season opened in late January.  Taxpayers will need to check Where's My Refund for their personalized refund date.

Overall, the IRS anticipates nine out of 10 taxpayers will receive their refund within 21 days of when they file electronically with direct deposit if there are no issues with their tax return. 

[ksepagency]

Thank you. I did not claim the EIC or ACTC on my return which is why I found it odd that my status is still processing.

[aodmisery]

 my baby was born in oct of 2019. they used 2018 taxes for the first stimulus so we never got it for her.  so with my other kids me and the mom switch years, one year me one year her.  when i filed this year i put in the total amount "we" received for me and the kids. even though she received the stimulus for my son. i put it in my taxes since if i didn't i would have gotten an overpayment. in the end they owed me 500 for my baby. i filed jan 30 still waiting on my federal return got my state. i called irs today and was told my refund was put on hold and to expect a letter in the mail. they didnt say why but most likely for that situation. turbo tax needs a better way too enter stimulus money recieved not just a total.  it should be a per person amount. 

[DawnC]

What do you mean by ''you would have gotten an overpayment''?   If you are not married and file separate returns, then you should have only entered what you received and she should enter what she received.   Whoever claims the baby on the 2020 tax returns is entitled to the credit; it doesn't matter what amount you received already.   Same with the other children, it doesn't matter what you received as stimulus payments, you qualify for payment for the children you claim on your 2020 return.   If you received too much money, you don't have to pay it back, but if you did not receive what you qualify for, you will receive it as the recovery rebate.   If you put down that you received more than was actually sent to you, then that is probably what is causing the delay.   But it may be something completely unrelated to that.   @aodmisery

[aodmisery]

so my sons mom received both stimulus payments.  but since i was claiming him this year i entered in stimulus amount his mom received. reason for this was if i didn't enter it it was trying to give me both stimulus amounts. meaning we would have received both stimulus payments twice for the same kid.

[KrisD15]

In your situation, when one child is claimed by two parents differently in different tax years, that child WILL generate a stimulus payment for each parent. It had been decided to let this happen, allow both parents to get the stimulus for the same child. 

Whether this is holding up your return or not I'm not sure, but the IRS is certainly under a lot of pressure so I suggest you give a little more time. You may get the additional amount and if so, don't worry about that being in error. 

[Rcat00]

Mine got delayed as well. I applied for recovery rebate credit for first stimulus in addition to regular return. Not sure how long is the wait time.

[JamesG1]

The IRS says that it will issue 9 out of 10 refunds to taxpayers in less than 21 days.  However, if:

• You have e-filed your 2020 Federal tax return,
• You are claiming a Recovery Rebate Credit (RRC) on line 30 of the 2020 1040 tax return, and
• Your tax return has been accepted by the IRS. 

We suspect that the IRS will scrutinize stimulus payments that were issued against the tax returns that claim the Recovery Rebate Credit. We do not know how much delay that the IRS will incur in such cases.

IRS live phone assistance is extremely limited at this time.  For stimulus payment questions, call 800-919-9835.

Follow the TurboTax COVID Tax Center and the IRS Economic Impact Payment Information Center for further developments.

[rachch1088]

I am in the same boat. Claimed the second stimulus since I didn't receive it (went to an old bank account), and I am still waiting for my refund.

[JamesG1]

The IRS says that it will issue 9 out of 10 refunds to taxpayers in less than 21 days.  However, if: 

• You have e-filed your 2020 Federal tax return,
• You are claiming a Recovery Rebate Credit (RRC) on line 30 of the 2020 1040 tax return, and
• Your tax return has been accepted by the IRS.  

We suspect that the IRS will scrutinize stimulus payments that were issued against the tax returns that claim the Recovery Rebate Credit. We do not know how much delay that the IRS will incur in such cases.

IRS live phone assistance is extremely limited at this time.  For stimulus payment questions, call 800-919-9835.

Follow the TurboTax COVID Tax Center and the IRS Economic Impact Payment Information Center for further developments.

[Azziesmama]

I have never had issues getting mine on time either but I did have to use the reclaim rebate this year for my daughter’s stimulus and I am in the same boat. It has been over 21 days and my accepted status disappeared from the “where’s my refund?” Page and it now says that it is being processed. 

[rachch1088]

same here with it just saying it is being processed. So annoying!

[Alex190]

I am close to the 21 day marker which is unusual. I used the Recovery Rebate Credit to claim the first stimulus due to being in a Mixed Status Family. I received second stimulus and the first had to be claimed on the 2020 return thanks to the retroactive approving of it for citizens in mixed families. But my status has been sitting at accepted much longer than expected. It is not comforting to have the whole return stalled for this credit. I hope they find away to relieve the backlog, as these filing situations should have been expected.  Just tell us the  real deal.

[Azziesmama]

Mine had the same issue. I submitted on the 12th and my refund status just posted saying that it will be released on march 19th (so about two weeks after it was supposed to be). I hope that helps and gives some hope.