Per the IRS, if an amount was entered on line 30 for the Recovery Rebate Credit but you were not qualified for the credit, the IRS will calculate the correct amount, make the correction to your tax return and continue processing your return. This adjustment caused the significant delay with your refund.
It seems as if your two dependents were not approved for the first stimulus payment received ($600 x 2).
Per the IRS, to be a qualifying child of an individual for purposes of the payment, generally the individual must live with the child for more than half of the tax year, the child must not provide over half of his or her own support for the calendar year, and the child must not file a joint return for the tax year. The child also must be the individual’s child, stepchild, eligible foster child, sibling, grandchild, niece, or nephew. In addition, to be claimed as a qualifying child, the child must be a U.S. citizen, permanent resident or other qualifying resident alien. The child must be under the age of 17 at the end of the year for the tax return on which the IRS bases the payment. Also, a qualifying child must have an SSN valid for employment or an adoption taxpayer identification number (ATIN). A child who has an ITIN is not a qualifying child for this payment.
In addition, please compare the information you entered on your 2020 return for your child against the child’s Social Security card. If the name and number entered on the return does not match what is on the card, the credit will be denied for that child. If you identify an error in the tax return entry, contact the IRS at the number provided on your notice and have a copy of the Social Security card(s) available.
Please try contacting the IRS in the morning, as the most calls received are probably mid-day.
2020 Recovery Rebate Credit — Topic G: Correcting issues after the 2020 tax return is filed
@Teryan14
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
