SilverRose2020
New Member

Recovery Rebate Credit

Turbo Tax figured the Recovery Rebate Credit wrong.  AGI of $87,808 should not get any credit.  I looked up the IRS ruling and it says nothing with an AGI above $87,000 is due a rebate.

 

Turbo Tax figures $560 - owed the IRS some money for this error.

VolvoGirl
Level 15

After you file

Are you Single?  The income to get the full amount for Single is 75,000 for the first 2 rounds.  But it phases out up to 99,000.   So you can still get some.   So it must be another reason they took it off your return.

 

If you claimed a missing stimulus payment on your return but the IRS took it off you have to ask the IRS. They think they already sent it to you. Maybe it went to an account you don't remember. Or you got a check or a card. It was probably easy to miss the debit card in the mail and think it was junk mail. They have to put a trace on it.

 

How to put a trace on a missing 1st or 2nd Stimulus payment.  IRS for Payment Issued but Lost, Stolen, Destroyed or Not Received

See question F3 here, you can expand it to see how to put a trace on it.

https://www.irs.gov/newsroom/2020-recovery-rebate-credit-topic-f-finding-the-first-and-second-econom...

View solution in original post

fanfare
Level 15

After you file

it all depends on whether you missed out on EIP1.

You are not eligible for EIP2.

fanfare
Level 15

After you file

next time, try a different tax software provider that will do your taxes correctly.

jmbailey2000
New Member

After you file

Same here. After 4 months IRS now says I owe. Turbotax had both EIP info (which I verified directly from the IRS site) and Turbotax calculated I was owed money via the Rebate Credit. IRS says, nope, now pay us. Curious how something this blatant could be missed by TT. 

fanfare
Level 15

After you file

IRS has to manually check every return with an amount on Line 30

If TurboTax filed millions of tax returns with this error, that's why IRS is backed up and I'm still waiting for my refund.

vickyc1
Returning Member

After you file

I received a bill in the mail from the IRS for $1K. I calculated the recovery rebate credit and got the same figure that is on my return. So who is wrong, me or the IRS?

xmasbaby0
Level 15

After you file

@vickyc1

 

https://finance.yahoo.com/news/got-irs-math-error-letter-152411992.html?fr=sycsrp_catchall

 

 

TurboTax has no way to know whether you received the 1st and/or 2nd EIP payments.   When you prepared your tax return you were asked in the Federal Review section if you had received those payments.   If you said you did not receive the payment(s) then the stimulus payment was put on line 30 of your tax return as a recovery rebate credit.  The IRS cross checks every return with an amount on line 30.  If the IRS sees that they already issued the EIP payment(s) to you then they adjust your refund or you even end up with tax due.

 

Check your IRS account---does the IRS say they sent you a payment that you did not receive? (If you filed a joint return you need to check for both spouses.)   If so you can ask for a trace to be put on the payment.

 

https://www.irs.gov/payments/view-your-tax-account

If you were issued a payment and have not received it, see How do I request a payment trace to track my first or second Economic Impact Payments?

 

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
DoninGA
Level 15

After you file


@vickyc1 wrote:

I received a bill in the mail from the IRS for $1K. I calculated the recovery rebate credit and got the same figure that is on my return. So who is wrong, me or the IRS?


If the IRS adjusted your 2020 federal tax return by removing the Recovery Rebate Credit then the IRS has information in their database indicating that you did in fact already receive the stimulus payment.

 

Go to this IRS website for your tax account and see if both stimulus payments are listed - https://www.irs.gov/payments/view-your-tax-account

 

If you did Not receive the stimulus payment then you will need to initiate a trace on the payment.

Go to this IRS website for how to trace the stimulus payment - https://www.irs.gov/newsroom/questions-and-answers-about-the-first-economic-impact-payment-topic-f-p...

vickyc1
Returning Member

After you file

Yes, I received both stimulus payments and verified the amounts on my IRS account.  I entered these amounts in Turbo Tax which calculated my credit to be $996.  In addition, I calculated the credit manually using the recovery rebate credit worksheet in the 1040 instructions. The worksheet matches the amount calculated by Turbo Tax!

VolvoGirl
Level 15

After you file

Didn't you get the full amount for both the first 2 Stimulus payments?   Was your 2018 or 2019 income over the max?  And 2020 income less?   Why do you qualify for more?  Did you add a dependent?  Maybe the IRS adjusted something else on your return like disallowed a dependent.

vickyc1
Returning Member

After you file

How I understand it is this:  The IRS didn't send me the correct stimulus payments for E1 & E2 so I claimed the amounts on Line 30.  Now the IRS says I can't claim the credit.  WTH??

 

Does anyone have a contact at the IRA?  I disagree with the amount due. Every time I call, I get dropped off due to high call volume.  I can't even get placed on hold!  

vickyc1
Returning Member

After you file

If the threshold for married filing jointly is $150,000 then yes.

vickyc1
Returning Member

After you file

My 2020 income was not less than 2019.  It was more.

vickyc1
Returning Member

After you file

I have three dependents, all under the age of 17. None of them are new dependents for 2019 or 2020.