Turbotax Recovery Rebate Credit 2021

[markpw]

I am sorry I do not know how to contact Turbo Tax by phone.

[markpw]

Turbo Tax had a bad year. Many problems in 2021.

[SweetieJean]

The IRS has had several bad years.  It is still processing 2020 returns that were filed in 2021. 

[DDF4]

I need to know what the correct amount I was supposed to receive for the Economic Impact Payment.

I too have received a letter from the IRS stating that they have made an adjustment of $700 to my return because we only received $2100 (jointly), which is the amount on our "Letter 6475", and $700 was credited for the difference of the $2800 that we (jointly) should have received according to what I have been reading in these messages. Why am I receiving the IRS adjustment letter if it is filed correctly? And why are they saying I owe them $700 plus interest now?

[NCperson]

@DDF4 - I suspect here is the confusion... while TT asked you how much was received on Letter 6475, there were actually TWO letters, once addressed to you and one to your spouse....each letter would have noted $2100, which means in TT you should have noted $4200 received. 

Do you have a dependent was on your 2020 tax return, but not on 2021? 

Go back and check your bank account from last March, I suspect you received $4200,

Since you only indicated you received $2100, and you are due $2800 for a joint return, that put $700 on line 30.

what should have occured is that you entered $4200 as received, were entitled to $2800, but since you are not required to pay back if you received too much stimulus, Line 30 should have been zero.  

[DDF4]

That is correct. It was our mistake. Thanks.

[ordenalexius]

just received notification that i owe additional taxes because of an error on my part??? re Recovery Rebate Credit

and one of the reasons given by the IRS is that it may be because gross income exceeded a specified amount. why was this not flagged by turbotax - ?????

greatly disappointed by the product for this year; it was less intuitive then in previous years and did not allow reentry to certain fields if there was an issue.

and i also got flagged by the state which now is seeking hard copy of the w2 form....

this should not have happened and will certainly consider seeking an accountant next year....

our joint return is not complicated....

and now there is no way to amend and electronically file the additional payment due....

no options exists to revisit the recovery rebate credit or just to enter the amount due and send it electronically,

and now if i wanted to choose turbo tax next year their base for my return for 2021 will be incorrect and wrong.  

[VolvoGirl]

How much is missing?

2,800 is the 3rd Stimulus payment.  It was 1400 for each person.  Did you already get the Stimulus payment they sent out last year starting March 2021? The IRS has records that show you were sent the 3rd stimulus payment so they removed the 2,800 Recovery Rebate Credit.

 Do you have an amount on 1040 line 30?  You might have tried to claim it again.   Line 30 is only if you didn't get the full amount or qualify for more. 

Did you get IRS letter 6475 saying what they sent you?  If you are married you should each get letter 6475 for half.

Double check your bank statements and check your IRS account to see what they sent you.  Check both IRS 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...Your Online Account | Internal Revenue Service

[ordenalexius]

i have 196.00 in line 30 and that is what i now own the IRS plus 0.52 cents in interest penalty,,,

how do i amend the return and pay the penalty????

[DoninGA]

Go to this IRS payment website and use Direct Pay for payment of federal income taxes - https://www.irs.gov/payments

[VolvoGirl]

You don't need to amend for that.  Amending won't change the tax due or refund.  You owe the tax due.   You can Pay the IRS directly at

Https://www.irs.gov/payments.  

The state return has nothing to do with the Recovery Rebate Credit on line 30.  Must  be something else for state.

You can go back into your return to check your entries and answers.  But be careful not to change anything.  Click on Add a State to let you back into your return. 

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

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...

[ordenalexius]

so i cannot amend my return in turbo tax but must pay the amount requested directly to the IRs thru their web site

or mail in a check, which is also an option....

[Chefkowboy]

Turbo Tax prompts your third stimulus payment eligibility on AGI.  It calculates that I'm owed $1400 and asks for verification from Letter 6475.  I did not have Letter 6475 to reference, so I checked the IRS website to verify that indeed I did receive $1400, further verified by bank records.  So I answered yes to $1400 and clicked continue.  The next screen stated that I had received my full stimulus and was not eligible for more.  Yet, when the tax return was calculated, Turbo Tax included the $1400 as a credit due me and included it in the amount of my refund.  My refund was received minus the $1400.  I later received the letter from IRS stating it had corrected my return to remove this credit.

Clearly this is an error on the part of Turbo Tax, including the $1400 in the refund due me.  Wasted hours trying to figure this one out.

[Chefkowboy]

Further, I do have to make an amendment to my return to correct an error where Turbo Tax Home and Business doubled the amount of my royalties received.  Had to search to find where an entry was made in the Personal section based on prompts, but that information was also prompted in the Business section.  Correction results in refund due me.  However, now Turbo Tax is correcting itself for the $1400 Recovery Rebate Credit it included in my original return, so that the amendment states I owe tax.

How do I file an amendment that shows only the refund due me?

[dcusic]

Also received "error on your 2021 form 1040SR, which affects the following area of your return:  Recovery Rebate Credit.  We charged your return to correct this error:  As a result, you owe $x,xxx."... equal to the 2 Recovery Rebate Credits.  

"The error was in one of more of the following:

- TheSSN of one of more individuals claimed as a qualifying dependent was missing or incomplete. (We claim no dependents).

-The last name of one of more individuals claimed as a qualifying dependent was missing or incomplete (No Dependents).

-One of more individuals claimed as a qualifying dependents exceeds the age limit.  

- Your adjusted gross income exceed $75,000 ($150,000 if ;married filing jointly, $112.5k if head of household. (We under)

- The amount was computed incorrectly. (That's on TurboTax!)