Turbotax Recovery Rebate Credit 2021

[nettiegentry62611]

My husband died on February 1, 2021. When our stimulus arrived, I called Senator Lindsey Graham's office to ask if he was eligible for this stimulus. They told me he was not eligible and I should return the $1400. to the IRS in Memphis, TN. I wrote a check and sent it along with a letter giving his Social Security number and his date of death. They cashed my check. When he got a letter from the IRS #6475 stating that he had received this money I called the IRS and was told that indeed he was eligible. I have been trying to get a refund. Yesterday I got a letter stating that I needed to file a 1040-X Amended tax return. I have printed this form but I don't see a place for Recovery Rebate Credit, which is where the IRS to place the $1400. Help

[NCperson]

Line 15 of Form 1040X - check the 'other' box and state 'RRC' on the line next to "other".

I'd include a short explanation about your spouse's passing, how your sent back the money but are entitled to it.  Two sentences - tops. 

[nettiegentry62611]

Thank You

[ecc]

Turbotax made a huge mistake adding the Recovery Rebate Credit on Line 30 of the 1040 when we already received the stimulus check 2021. Nowhere is the step by step is asking if we already received. IRS is pissed off at ALL turbotax users because we ALL have the same mistake made by turbotax !

If you received the $1400 per dependent (IE: father, mother, 1 kid = $4200) stimulus check, you must NOT claim Recovery Rebate Credit. You must go to tab FORM and manually delete all on the Recovery Rebate Credit worksheet to correct this Turbotax error.

[ecc]

Turbotax made a huge mistake adding the Recovery Rebate Credit on Line 30 of the 1040 when we already received the stimulus check 2021. Nowhere is the step by step is asking if we already received. IRS is pissed off at ALL turbotax users because we ALL have the same mistake made by turbotax !

If you received the $1400 per dependent  (IE: father, mother, 1 kid = $4200) stimulus check, you must NOT claim Recovery Rebate Credit. You must go to tab FORM and manually delete all on the Recovery Rebate Credit worksheet to correct this Turbotax error.

[NCperson]

@ecc - you can't simply delete Line 30 - go to the Federal Review section and answer the questions about the 2021 stimulus payments....

[NCperson]

@ecc - NOT TRUE - the questions about the 2021 stimulus are under the Federal Review section of Turbo Tax.  Manually overriding Line 30 is NOT the way to approach this - you will invalidate the Turbo Tax Guranentee if you do that.  

[ecc]

We ALL Turbotax users received the same IRS letter 6475 of error "Recovery Rebate Credit"

Now I have to pay $1568 in penalties and fees because this Turbotax mistake.

Turbotax made a huge mistake adding the Recovery Rebate Credit on Line 30 of the 1040 when we already received the stimulus check 2021. Nowhere is the step by step is asking if we already received. IRS is pissed off at ALL turbotax users because we ALL have the same mistake made by turbotax !

If you received the $1400 per dependent (IE: father, mother, 1 kid = $4200) stimulus check, you must NOT claim Recovery Rebate Credit. You must go to tab FORM and manually delete all on the Recovery Rebate Credit worksheet to correct this Turbotax error.

[NCperson]

@ecc -

<<Nowhere is the step by step is asking if we already received. >>

please know your facts  as your statement is simply not true - in the Federal Review section you were asked about the stimulus.  

[ecc]

My statement is true and correct !

I went 3 times looking back and forth between step by step and form and the NOT question about that. its just asking for values

[ecc]

on the step by step asks:

Does this amount on letter 6475 for you and (spouse name) ?

My answer was NO because simply didn't match for about $500

then after ask for the 3rd round and i entered the $4200 i received

[NCperson]

@ecc 

how many people are listed on your tax return?

what was on Line 30 on your tax return? 

what did Letter 6475 state as the amount received (and note if you filed joint, there are TWO letters - one for each spouse) 

[Barb552]

We received a letter from the IRS stating we incorrectly entered the recovery rebate credit  and that we owed 171.71.   Would that mean we should now be paying estimated taxed for 2022?

[DoninGA]

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@Barb552 wrote:

We received a letter from the IRS stating we incorrectly entered the recovery rebate credit  and that we owed 171.71.   Would that mean we should now be paying estimated taxed for 2022?

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There is no reason to pay estimated taxes for tax year 2022 if all you owe to the IRS on your 2021 tax return is $171.71.  Just pay the taxes owed.

Go to this IRS tax topic for underpayment penalties - https://www.irs.gov/taxtopics/tc306

The United States income tax system is a pay-as-you-go tax system, which means that you must pay income tax as you earn or receive your income during the year. You can do this either through withholding or by making estimated tax payments. If you didn't pay enough tax throughout the year, either through withholding or by making estimated tax payments, you may have to pay a penalty for underpayment of estimated tax. Generally, most taxpayers will avoid this penalty if they either owe less than $1,000 in tax after subtracting their withholding and refundable credits, or if they paid withholding and estimated tax of at least 90% of the tax for the current year or 100% of the tax shown on the return for the prior year, whichever is smaller.

[SweetieJean]

My own take is that the terms "Economic Impact Payment, "Stimulus" and "Recovery Rebate Credit" can confuse taxpayers, who may think these are separate programs.  And the IRS letters telling folks how much they got sometimes didn't arrive until after a tax return was filed.