Recovery rebate credit 2021 taken back by IRS

[Xandi001]

Hello,

I also am having an issue with Turbotax stating I would receive a refund of $1807.00, however the IRS stating 
"We changed the amount claimed as Recovery Rebate Credit on your tax return" and now you owe $995.62.

Turbo tax asked did you receive a THIRD stimulus payment of $1400. per person (2800 joint). I answered NO as I only got two, not a third.

I saw on another post Turbo tax said you can't get both the $1400. per person paid in Feb/March AND the Recovery rebate credit. I'm confused as isn't that the third rebate you asked me about in which I said NO I didn't get it? Was this poor wording on your program's part? Should I have gotten three rebates or only two?

If I meet the criteria defined (less that $150k) should I be entitled to the third rebate credit or not?

At this point, I'm not sure if I was entitled to the third $2800. and I need to do a tracer or if you are saying no, you are only entitled to two?

How can I figure this out?

Thank you!

[VolvoGirl]

There have been 3 stimulus payments.  3 rounds.  What 2 did you get?  The IRS shows they sent you the third round (1400 person)  so 2800 for married.  Did you get IRS letter 6475 saying how much they sent you?  You would have each gotten a letter for half.

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.

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...

[VolvoGirl]

It wanted to know if you got the 3rd Round that came out in 2021.  Not 3 checks in 2021.  If you are thinking you only got 2 payments in 2021 that really was for the 2nd Round and 3rd Round.  (The 1st Round came out in Spring 2020).

So did you already get the 2800 3rd Stimulus payment?

[NCperson]

@Xandi001 - please read @VolvoGirl 's repsonse closely.  it is very good

The one thing I wanted to add, and this may be part of the confusion,  @VolvoGirl provides the background on EIP1 and EIP2; they  have NOTHING to do with the 2021 tax return; they were part of the 2020 tax return, even though EIP2 was received by most in January 2021.

for the 2021 tax return, the focus is on EIP3 only.   

[Critter-3]

@Xandi001 

The most important thing to know ... if you say you did not get the third stimulus BUT  the IRS thinks they did send it then you must initiate a trace to refute their findings ...  AND you must pay the balance due in the meantime ... you cannot afford to wait for this situation to be concluded which could take months.

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...