Recovery Rebate Credit (Economic Impact Payment)

[lakos1252]

My son's $1373 refund got turned into a $27 payment. This is what he got from the IRS.  WHY?????

We made changes to your tax return that changed the amount of your refund. Our changes eliminated your expected refund and resulted in a balance due of $27.00. You will receive a notice that explains the changes to your tax return. Your notice was mailed on March 14, 2022.  (HAVE NOT RECEIVED THIS LETTER YET)
More details about the changes we made to your tax return:
We changed the amount claimed as Recovery Rebate Credit on your tax return. The error was in one or more of the following:  The Social Security number of one or more individuals claimed as a qualifying dependent was missing or incomplete. (NOT TRUE)  The last name of one or more individuals claimed as a qualifying dependent does not match our records.  One or more individuals claimed as a qualifying dependent exceeds the age limit.  Your adjusted gross income exceeds $75,000 ($150,000 if married filing jointly, $112,500 if head of household).  The amount was computed incorrectly.  (HIS AGI WAS LESS THAN $75K)

[xmasbaby0]

That generic letter is sent when they reduce a refund.   It just lists a variety of possible reasons for the change.   The most likely one is the "catchall" one that mentions it was computed incorrectly.   That can ---and usually does--mean that he entered something incorrectly on his tax return.

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.

Try checking your online account with the IRS

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

Does the IRS show that you received a $1400 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 on line 30 of your tax return?

If the IRS says you got $1400 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...

[DoninGA]

If his refund is short $1,400 then that is because he said he did not receive the 3rd stimulus payment and the IRS has records that show he was sent the 3rd stimulus payment so they removed the $1,400 Recovery Rebate Credit that was entered on Form 1040 Line 30.

Go to this IRS website for his tax account to see if the 3rd stimulus payment is entered - https://www.irs.gov/payments/your-online-account

If he checked his bank account in the March - May 2021 timeframe and there is not a $1,400 EIP3 payment from the IRS then go to this IRS website for how to start a trace on the payment - https://www.irs.gov/newsroom/questions-and-answers-about-the-third-economic-impact-payment-topic-j-p...

[lakos1252]

Thank you, we are pretty sure that my son did not get the "EIP" of $1400 last year but will confirm.