Third stimulus check error

[Hdotfly]

I filed my federal income taxes and submitted them to the IRS already and just found out I made a huge mistake. I never received the third stimulus check, or so I thought. I reported on my taxes I didn’t receive it and 3 weeks later I was at my mothers house and she had a stack of mail for me from the last 2 years. In it was a letter stating I did get the payment and it was deposited into a bank account I haven’t used in over a year. I checked the account balance and sure enough there was a $1400 stimulus payment. Yes it was a great feeling to find an extra $1400 but after the euphoria wore off I got the wind knocked out of me because I remembered my taxes. It’s been 20 days since I submitted them and they are still being processed. I’m worried about what might happen now. I’m a seasonal worker and I desperately need my refund to get by. So what can I expect in terms of delays or even legal issues from all of this?

[xmasbaby0 · Accepted solution]

Sorry----but you can expect a delay in processing your return.   Since you answered incorrectly about that stimulus payment, your return will be reviewed.   The IRS knows they sent it to you, so they will reduce the refund you were seeing on your tax return form by that $1400.   It will take extra time---we cannot tell you how much extra time.  You will not have "legal issues"-----there are a LOT of people making mistakes with this.

[Hdotfly]

Poking around on Reddit and Google I’ve seen a lot of people saying that when their returns were being held for further review they were told it would be 60 days before they could contact the IRS for any status updates. Can I expect something similar?

[xmasbaby0]

Maybe.   A lot of people made similar mistakes with the recovery rebate credit on their 2020 returns and their refunds were delayed.  The IRS cross checks returns with amounts on line 30.   It is too soon in the tax filing season to know how long the delays might be this year.   There is going to be plenty of confusion between the child tax credit and recovery rebate credits.   All you can do is wait and watch the IRS site for information.

[Darkside]

Should you amend return or wait for IRS to fix return for you, if you mistakenly said you didn't receive 3rd stimulus check, but did.

[xmasbaby0]

@Darkside

No do not amend.   You just have to wait for the IRS to fix your mistake.   By answering incorrectly about the stimulus amount you received you put an amount on line 30 of your Form 1040.   The IRS checks that line.  They know how much they sent to you.   They will reduce your refund by that amount.   This will delay your refund so expect a wait.

[DoninGA]

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@Darkside wrote:

Should you amend return or wait for IRS to fix return for you, if you mistakenly said you didn't receive 3rd stimulus check, but did.

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The IRS has records which show that the 3rd stimulus payment was sent to you so they will adjust your tax return accordingly.

There is no need for you to amend the 2021 tax return.

[VolvoGirl]

No you don't need to amend for that.  The IRS will automatically adjust your return and take if off.  It will delay your return and reduce your refund or they will send you a bill.  

[steve-7562]

I had a somewhat similiar issue.   I never received the $600 stimulus check.  I wrote the IRS, and they informed me that it was sent to a wrong address and returned.  The $600 was all that was owed to me on my 2020 return.  The IRS told me to claim the $600 as a credit and as a " refund rebate credit" on my 2021 return.  I couldn't figure out how to do that, so I went to the local IRS office today.  They told me to NOT AMEND my 2020 return.  There was nothing wrong with it.  I was to adjust line 30 on the 1040.  There is a Recovery Rebate Credit Worksheet.  Line 12 is $1400.  I put in $800 on line 13, and the form calculated the correct $600 Recovery Rebate Credit, that goes to line 30.

[et0520]

If I made the mistake and I now owe money instead of getting a refund, should I continue to wait, or can I amend the return paying the owed amount?

[et0520]

If I made the mistake and I now owe money instead of getting a refund, should I continue to wait, or can I amend the return paying the owed amount?

[DoninGA]

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@et0520 wrote:

If I made the mistake and I now owe money instead of getting a refund, should I continue to wait, or can I amend the return paying the owed amount?

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Before starting to amend the tax return, wait for the tax refund to be received or the taxes due to be paid and processed by the IRS.

See this TurboTax support FAQ for amending a 2021 return - https://ttlc.intuit.com/community/tax-return/help/how-do-i-amend-my-2021-return/00/2544441

[JillS56]

If you made a mistake and claimed the 3rd stimulus payment, do not file an amendment until you know the original return has been received and processed.   The IRS will most likely catch this error before issuing you a refund and send you a letter.   If you know you owe, you could make the payment to avoid any penalty or interest being imposed.   

If by chance you receive the refund from your original return, then you can prepare the amendment and send the payment with the amendment.   If you go ahead and make a payment then show the payment made on the amended return.