Recovery Rebate Credit CP11

[J-Leo]

Received Notice Named CP11 requesting additional amount due of $2,000.  The "Why we changed your information" section list 5 reasons, none of which seem to apply to me.  I can't get through on the phone.  Any suggestions?  Thank you.

[xmasbaby0]

Pay the most attention to the last one that mentions "computation errors"---it is a catchall term that the IRS uses.   There have been a LOT of people who have made user errors with the recovery rebate credit (for the 3rd "stimulus" checks) and/or the child tax credit.    So----you need to look at lines 28 and 30 of your Form 1040 to see if you made a mistake.

TurboTax does not get any information from the IRS after you file your tax return, so no one at TT knows why your refund was less or why you owe more.

 Sometimes we can make an educated guess as to the reason for your reduced refund if you mention specific amounts--for example if your refund was short by $1400 per person---it is likely to be a mix up regarding the 3rd EIP payment.    If you received the 3rd stimulus check of $1400 per person in 2021 then you got letter 6475 from the IRS about it.   You needed to enter the amount you received.   If you already received that money then line 30 on your Form 1040 should have been blank.

  If it is short by $1800 or  $1500 or  a multiple of that amount  ---   maybe a mixup regarding the advance child tax credit payments. If you received monthly child tax credit payments of $250 or $300 per month between July and December of 2021, then you got letter 6419 from the IRS, and you were required to enter the amount of the advance payments.   Only the remaining amount of the CTC should have been on line 28 of your Form 1040.

The IRS knows how much they sent to you for the 3rd stimulus check and they know how much they sent for advance child tax credit payments.   If you answered something incorrectly on your tax return then the IRS made a correction that resulted in a reduced refund for you. 

 Or---the fees you were supposed to pay for using TurboTax + the "refund processing fee" charged by the third party bank….

Did you choose to have TT fees deducted from your Federal refund?  (Remember that if you did that, you also agreed to an extra refund processing fee of $39.99 or $44.99 in CA)

How can I see my TurboTax  fees?   

https://ttlc.intuit.com/questions/2565973-how-do-i-review-my-fees-in-turbotax-online

What is Refund Processing Service?

The IRS will send you a letter that explains why your refund was reduced.   Meanwhile it might help you to check your online IRS account.

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

https://blog.turbotax.intuit.com/tax-refunds/why-is-my-tax-refund-not-what-i-expected-49240/

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.

Updated IRS FAQ about recovery rebate credit

https://www.irs.gov/pub/taxpros/fs-2022-27.pdf

[NCperson]

@J-Leo - what is on Line 30 of Form 1040.

you were eligible for $1400 for each person listed on your tax return LESS what you received from March - May, 2021.  

1) check you bank account statements from March - May, 2021.  How much did the IRS deposit.  Please do not do this from memory.

2) if what you identifty is Step 1 does not match what you told TT when you completed your taxes. then that difference is what the IRS has adjusted.  

if you post the following, I can explain what occured

1) number of poeple listed on your tax return

2) amount on Line 30 of Form 1040

3) how much the IRS gave you as verified by your Bank Statements. 

[J-Leo]

Thank you NCperson, very helpful.  See below...

you were eligible for $1400 for each person listed on your tax return LESS what you received from March - May, 2021.  

1) check you bank account statements from March - May, 2021.  How much did the IRS deposit.  Please do not do this from memory.

Looked at Feb 2021 to June 2021...zero  (could date be different?  Can't get online to IRS to check today)

2) if what you identify is Step 1 does not match what you told TT when you completed your taxes. then that difference is what the IRS has adjusted.  

if you post the following, I can explain what occurred

1) number of people listed on your tax return

two (2) 

2) amount on Line 30 of Form 1040

$2,800

3) how much the IRS gave you as verified by your Bank Statements. 

Zero.  But I did receive some payments earlier.  The 3rd payment came up when I was using Turbo Tax.  The software inserted it.  It surprised me but I appear to qualify for it...

[VolvoGirl]

If the IRS thinks they already 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...

There have been 3 rounds of Stimulus.

EIP1 The first Stimulus payment was 1,200 for each spouse and 500 for each dependent under 17.  Came out in spring of 2020.

EIP2 The second Stimulus was 600 per person and dependents under 17. The 2nd stimulus checks started going out at the very end of December 2020 and continued into January/Feb 2021.

The first 2 Stimulus payments went on your 2020 return even if you got the second one in Jan/Feb 2021.

EIP3 The 3rd Stimulus payment started going out in March 2021 and is for 1,400 for each person listed on your tax return, no age limit. The IRS used your 2020 (or 2019) return to send the checks out fast. If your 2021 return changes and you qualify for more you can claim the extra as the Recovery Rebate Credit on 1040 line 30. But line 30 is only if you didn't get the full amount or qualify for more. Not the amount you already got. The IRS also sent out letter 6475 to tell you how much they sent you . If you are married then each spouse should get a letter for half.

[NCperson]

here is what appears to have occured

1) you entered into TT that you did not receive the $2800 stimulus you were entitled to.  That is why $2800 ended up on Line 30

2) However, you state you did not receive the $2800 and could find no deposits into your bank statements 

3) But the IRS records indicate that they indeed sent you the $2800 - which is why they adjusted Line 30 back to zero which has the further affect of reducing your refund by the same $2800 (or increasing what you owe)

That means one of two things occured

1) the deposit really is in your bank account and you missed it  OR

2) the IRS sent it, but you didn't receive it ("lost in the mail" syndrome).  The only way to resolve the issue is to completed and mail in Form 3911 / the tracer form. 

https://www.irs.gov/newsroom/questions-and-answers-about-the-third-economic-impact-payment-topic-j-p...

[J-Leo]

***Perfect****  thank you.

I'd overlooked that I had my IRS payments sent to another checking account.  So the the $2,800 was there in August 2021.

Thank you.