Refund reduced

[Phillip6000]

I have used Turbotax for over 10 years.  I used 2021 Turbotax for myself and multiple family members.   None of us received a 3rd stimulus check and we answered no to the questioned asked by Turbotax.  This caused the Turbotax program to give us credit on line 30 of 1400 or 2800.  All the returns showed no errors and were accepted.    All our refunds received were reduced by the 1400 or 2800 recovery rebate credit.   I called Turbotax and they say there is no error in the 2021 Turbotax program.   I still have no explanations of why the refunds were reduce.  Does anyone have any answers?

[DoninGA]

If your refund is short $1,400 then that is because you said you did not receive the 3rd stimulus payment and the IRS has records that show you were 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 your tax account to see if the 3rd stimulus payment is entered - https://www.irs.gov/payments/your-online-account
If you are Married Filing Jointly also check your spouse's tax account.

If you checked your 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...

[JamesG1]

If the IRS reduced your refund by the amount of the Recovery Rebate Credit on line 30 of the Federal 1040 tax return, the IRS thinks that you were already issued the third stimulus payment.

At your IRS online account, you can find whether a payment was issued to you that you did not receive.  You can also find this information on your tax transcript.

If you need to trace a payment that the IRS says has been issued to you, mail or fax a completed IRS Form 3911, Taxpayer Statement Regarding Refund.

The qualifications for the third stimulus payment are:

• you were a U.S. citizen or U.S. resident alien in 2021, 
• you were not a dependent of another taxpayer’s 2020 tax return, and 
• you have a Social Security number.

There are income limitations are if your adjusted gross income (AGI) is more than:

• $150,000 if married and filing a joint return or filing as a qualifying widow or widower
• $112,500 if filing as head of household or
• $75,000 if filing as a single or as married filing separately.