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Level 2
posted Mar 18, 2021 7:36:30 PM

Recovery rebate credit was taken for owed back taxes. Will IRS fix this issue?

I received the 1st 2 stimulus payments for myself but not for my kids. I did the recovery rebate and was told I would get $2,200 because I didnt get the money for my dependents. I didnt have any income so the recovery rebate was the only thing I was getting on my return. I didnt even know I owed back taxes and have no clue why but apparently I did and the IRS took all but $36 of my return. How can they garnish the recovery rebate (which is missing money from the stimulus) but not the stimulus? Are they going to fix this somehow? It's so unfair and I'm sure there are several people out there with this issue.

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1 Replies
Expert Alumni
Mar 18, 2021 7:59:45 PM

Yes, IRS may not offset your Reovery Rebate Credit for taxes already owed, but IRS may reduce your 2020 refund if you owe taxes on your 2020 income tax return. You can call the IRS at 1-800-829-1040 or visit the Taxpayer Advocate website.

 

The  3rd round of stimulus payment  will be calculated on either 2019 or 2020 tax returns.. The IRS created a new “Get My Payment” tool to allow taxpayers to track their stimulus payments and provide banking information so that they could get a direct deposit rather than a mailed stimulus check.