We claimed the Recovery Rebate Credit on our federal tax return ($1100 for our 2020 baby for the first two stimulus), but it was excluded from our return. What do I do?

[justinamassey]

We did receive the third stimulus for him and our other children and ourselves, so obviously we were eligible. How do I go about correcting this?

[SweetieJean]

The IRS will be sending you a letter, so wait for it.  They do not notify TT.

In addition, the 2020 Recovery Rebate Credit can be reduced to pay debts owed to other Federal government agencies (separate from federal income tax debt), as well as to state agencies.  Keep in mind that the credit is part of your tax refund, and your tax refund is subject to offset.

[justinamassey]

We don’t owe anyone, so there shouldn’t be an issue though. I’ll wait for a letter I guess...

[Lortiz2]

The same happened to me. I spent 4 hours on the phone with 3 different people. One didn’t know. The other two told me that my child is disqualified because he wasn’t listed on my 2019 tax return. The law is written to say the eligibility for the recovery rebate credit is based on your 2020 tax return. They are supposed to calculate the first to payments you should have received based on 2020, then subtract what you already received and refund you the remaining which would be $1100. They told me that they have not heard that and I am wrong, I even referred them to the irs website where it states how to get your money for a child born in 2020, who is eligible, etc. I was told over and over that no baby born in 2020 would qualify. This is a lie. It was very frustrating. I’m not sure what else to do. Maybe if I call everyday eventually I’ll get someone that will help. 

[justinamassey]

Update - received our notice and it states that there is a miscalculation in our recovery rebate credit. But I know this is incorrect. Our refund is short exactly $1100, which is what we should receive for our 2020 baby. 

I called the IRS, first person said 2020 babies are not eligible for the 1st and 2nd stimulus payments, but that goes against every bit of information previously sent out. That person transferred me to another department that could look further into my account and after half an hour I was hung up on. How can we fix this issue if we can’t even speak to someone that can help us? Do I file an amendment? Ugh!

[Lortiz2]

I spoke with a rep today for 3 hours. She said I am eligible for the $1100 recovery rebate credit according to the correspondence she researched but it is not allowing her correct the issue. She reached out to her supervisor that told her all children born in 2020 are not eligible for the first 2 payments. She then told me that she argued that with her and showed her where irs.gov says they are. Her supervisor told her this is the only guidance she has received about this issue so an adjustment can’t be authorized by her. She then instructed her to submit a write up for management to investigate why my child born in 2020 is not eligible when irs.gov as well as the notices sent out with each payment says he is. She told me I would receive a response in the mail in 30 days at which time I will need to submit proof of why I believe he is eligible. I can’t even believe this. How are they getting away with it? 

[jenEpoo]

I haven't recieved my letter yet, but my refund was reduced by $1,100 and I also added a dependent for 2020. I'm just getting ready for what I think is coming. 

This is straight from the IRS website. I really hope I don't have to spend time on the phone with people.

A9. The first Economic Impact Payment did not include an additional amount for these children because the payment was based only on information from your 2019 or 2018 tax return. You may claim qualifying children born, adopted or placed into your foster care  in 2020 for the 2020 Recovery Rebate Credit and must file a 2020 tax return to claim the credit, if eligible.

[VolvoGirl]

Did you have the $1,100 for the new baby on 1040 line 30?  Did you have any other children that turned 17 in 2020?  How much did you actually get for the first 2 Stimulus payments?  Did you enter the full amounts you got in the right 2 boxes?

[jenEpoo]

Yes, my $1,100 was on line 30. None of my other kids turned 17.  First check $4,400. Second check $3,600.

I have four dependents as of 2019, five as of 2020. I don't recall which 2 boxes I had to put the other amounts in. (My return was accepted 2/12 so I've forgotten quite a bit) but I do recall triple checking to make sure I had the math done correctly.

[justinamassey]

@VolvoGirl 

Did you have the $1,100 for the new baby on 1040 line 30?  yes 

Did you have any other children that turned 17 in 2020?  No

How much did you actually get for the first 2 Stimulus payments?  We received the amount for 2 adults and 4 children both times.

Did you enter the full amounts you got in the right 2 boxes? Yes

[VolvoGirl]

Those are the right amounts for married with 4 dependents.  If you claimed a stimulus payment on your return but the IRS took it off you have to ask the IRS.

See Question G4 here,
https://www.irs.gov/newsroom/2020-recovery-rebate-credit-topic-g-correcting-issues-after-the-2020-ta...

[Lortiz2]

I still haven’t had any luck getting my $1100. I did try to call again but was told I needed to wait 30 days because the last person I spoke with that told me I was eligible to receive that had to do a write up to investigate the issue because her supervisor would not allow her to make the fix telling her the same line that 2020 babies are not eligible for the recovery rebate credit which is not true. I don’t know if they are making it up or if they really don’t know because if they look at their own website it clearly states that 2020 babies are eligible. I also know of someone who did not receive stimulus payments because their income in 2019 was too high. Their 2020 income dropped down to about $40,000 and they were denied the recovery rebate credit and told by numerous irs agents that the recovery rebate credit is not based on your 2020 tax info but your 2019. They are clueless. This rep that was actually trying to help said her supervisor told her that children born in 2020 are eligible but only if they were listed on your 2019 tax return. That answer itself right there just blows my mind. Are they even listening to the words they are saying?

[jenEpoo]

Lol. Wow. I appreciate the update on what you've been through. I'm just waiting for the letter and trying to be as prepared as possible.

It just really bothers me because I personally know people who did get the stimulus for the new babies. How infuriating that so much time has to be spent on this.