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BlackLotus25
New Member

Recovery rebate credit

I used stupid turbo tax an actually paid for it. My return is taking extra long due to not claiming the credit for the 3rd stimulus check. What should I do to correct the issue 

2 Replies
DoninGA
Level 15

Recovery rebate credit

The third stimulus payment is not reported on the 2020 federal tax return and is NOT included in the Recovery Rebate Credit.

 

The IRS uses either your filed 2020 or 2019 tax return to calculate the third stimulus payment.

Go to this IRS website for the third stimulus payment information - https://www.irs.gov/coronavirus/get-my-payment

 

The IRS is seriously behind in processing 2020 tax returns.  This is due to many factors, such as the pandemic, completing processing of millions of 2019 tax returns, stimulus payments, unemployment compensation exclusion tax refunds., changes in the tax code by Congress in the middle of the 2020 tax season and the like.

 

Millions of taxpayers have not yet received there federal tax refunds.

 

Go to this IRS website for operational status - https://www.irs.gov/newsroom/irs-operations-during-covid-19-mission-critical-functions-continue

 

As of July 9, 2021, we had 16.4 million unprocessed individual returns. Unprocessed individual returns include tax year 2020 returns such as those requiring correction to the Recovery Rebate Credit amount or validation of 2019 income used to figure the Earned Income Tax Credit (EITC) and Additional Child Tax Credit (ACTC). This work does not require us to correspond with taxpayers but does require special handling by an IRS employee so, in these instances, it is taking the IRS more than 21 days to issue any related refund and in some cases this work could take 90 to 120 days. If, as a result, a correction is made to any RRC, EITC or ACTC claimed on the return, the IRS will send taxpayers an explanation. Taxpayers are encouraged to continue to check Where’s My Refund? for their personalized refund status and can review Tax Season Refund Frequently Asked Questions.

 

What you should do: If you filed electronically and received an acknowledgement, you do not need to take any further action other than promptly responding to any requests for information. If you filed on paper, check Where’s my refund? If it tells you we have received your return or are processing or reviewing it, we are processing your return, but it may be under review. We’re working hard to get through the backlog. Please don’t file a second tax return or contact the IRS about the status of your return.

xmasbaby0
Level 15

Recovery rebate credit

There was no place to enter anything about the 3rd stimulus check on a 2020 return.   You could use the recovery rebate credit for the 1st or 2nd EIP payments---not the 3rd one.     If you used the credit for the 1st or 2nd one then there should be an amount on line 30 of your Form 1040.

 

When the IRS finishes processing your 2020 return they can release the 3rd stimulus to you.  But they do that on their own timetable.

You can use the IRS Get My Payment site to see what is expected for your 3rd stimulus check:

 

https://www.irs.gov/coronavirus/get-my-payment

 

 

 

There are millions of people waiting for delayed 2020 refunds due to the backlog at the IRS.   

The IRS is backlogged —-they are still trying to process millions of 2019 returns; they received millions of e-files on the day they opened for 2020 returns, and now they are burdened with sending out another round of stimulus checks.   Congress changed the tax laws in the middle of the tax season so millions of returns need to be recalculated; and now on top of all that,  they have to gear up to start making monthly child tax credit payments.

 

 

Some delays are resulting from incorrect amounts that folks entered for stimulus checks they received.   Many people have been confused by the recovery rebate credit and completed it incorrectly.  The IRS may delay your refund while they cross-check to see what you received.  Some refunds are delayed because of the tax law changes that went into effect recently.   If your return has unemployment or the premium tax credit on it, that may be delaying it.

 

 

First, check your e-file status to see if your return was accepted: 

https://turbotax.intuit.com/tax-tools/efile-status-lookup/

 

Once your federal return has been accepted by the IRS, only the IRS has any control.  TurboTax does not receive any updates from the IRS. Your ONLY source of information about your refund now is the IRS.

You need your filing status, your Social Security number and the exact amount  (line 34of your 2020 Form 1040) of your federal refund to track your Federal refund:   

https://www.irs.gov/refunds

To track your state refund:    

https://ttlc.intuit.com/questions/1899433-how-do-i-track-my-state-refund

 

https://ttlc.intuit.com/questions/1901548-why-do-some-refunds-take-longer-than-others

If you chose to have your TurboTax fees deducted from your federal refund, that will take some extra time, while the third party bank handles the refund processing.

https://www.irs.gov/refunds/tax-season-refund-frequently-asked-questions

https://ttlc.intuit.com/questions/2840013-does-accepted-mean-my-refund-is-approved

https://ttlc.intuit.com/questions/2724106-my-return-is-accepted-but-still-not-approved-is-there-a-pr...

 

 

 

 

 

 

From this IRS website - https://www.irs.gov/newsroom/irs-operations-during-covid-19-mission-critical-functions-continue

 

 As of June 23, 2021, we had 17.5 million unprocessed individual returns in the pipeline. Unprocessed returns include tax year 2020 returns such as those requiring correction to the Recovery Rebate Credit amount or validation of 2019 income used to figure the Earned Income Tax Credit (EITC) and Additional Child Tax Credit (ACTC). This work does not require us to correspond with taxpayers but does require special handling by an IRS employee so, in these instances, it is taking the IRS more than 21 days to issue any related refund. If, as a result, a correction is made to any RRC, EITC or ACTC claimed on the return, the IRS will send taxpayers an explanation. Taxpayers are encouraged to continue to check Where’s My Refund? for their personalized refund status and can review Tax Season Refund Frequently Asked Questions.

How long you may have to wait: The IRS understands the importance of timely processing of tax returns and refund issuance. We have processed all error free returns received prior to 2021, and continue to work the returns that need to be manually reviewed due to errors.  We are rerouting tax returns and taxpayer correspondence from locations that are behind to locations where more staff is available, and we are taking other actions to minimize any delays. Tax returns are opened and processed in the order received. As the return is processed, it may be delayed because it has a mistake including errors concerning the Recovery Rebate Credit, is missing information, or there is suspected identity theft or fraud. If we can fix it without contacting you, we will. If we need more information or need you to verify that it was you who sent the tax return, we will write you a letter. The resolution of these issues depends on how quickly and accurately you respond, and the ability of IRS staff trained and working under social distancing requirements to complete the processing of your return.

What you should do: If you filed electronically and received an acknowledgement, you do not need to take any further action other than promptly responding to any requests for information. If you filed on paper, check Where’s my refund? If it tells you we have received your return or are processing or reviewing it, we are processing your return, but it may be under review. We’re working hard to get through the backlog. Please don’t file a second tax return or contact the IRS about the status of your return.

 

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
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