I also just received the letter from the IRS indicating my Recovery Rebate Credit information is incorrect. Basically stating that I don't have a recovery credit as shown on line 30 of the 1040. That being said, I think I may have found out why MY information is wrong.
Using TT Recovery Credit Worksheet,
- Line 5 ask that you enter $1,200 or $2,400. For the purpose of this exercise I entered $2,400 ($1,200x2)
- Line 19 ask that you enter the amount, if any, of EIP. This amount was $1,200 ($600x2)
- Line 21 adds lines 17 and 20 which total is $1,200. Which is the difference between line 15 ($2,400), and line 16 ($1,200).
From a formula perspective I understand the math that took place here. But from a logic perspective why is LINE 5 being asked. In reality, Line 21 should be ZERO ($0), thus moving $0 to Line 30 on the 1040.
