Can someone please explain where I should enter the Recovery Rebate Credit for the 2021 Federal Return? I spent hours trying to find out where to put the Third Stimulus Rebate that I did not receive. Also, why my Federal Tax due increase?
According to the IRS, if you did not get the full amount of the third Economic Impact Payment, you may be eligible to claim the 2021 Recovery Rebate Credit and must file a 2021 tax return – even if you do not usually file taxes - to claim it. Your 2021 Recovery Rebate Credit will reduce any tax you owe for 2021 or be included in your tax refund.
https://www.irs.gov/newsroom/2021-recovery-rebate-credit-topic-f-receiving-the-credit-on-a-2021-tax-...
However, when I entered the Recovery Rebate Credit, it increased my Federal Tax due.
TurboTax Tab (s) Personal Review ask for the following information:
- Let's double check the amount you received
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- Based on the tax info you entered and your combined adjusted gross income of $150,948, you and spouse are eligible for a third stimulus payment of $2,548.
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- Does this match the amount on Letter(s) 6475 for you and Spouse?
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- Yes or No - I selected No because Letter 6475 total should be $2,800. Then my Federal Tax due increased.
But the IRS states, "Recovery Rebate Credit will reduce any tax you owe for 2021 or be included in your tax refund".
Please advise.
