It sounds like you filed successfully (did you get your refund?) and now you are being asked "why did you pay us $500 on schedule 2 line 10?"
Yes that sounds right.
(Double check, is this letter for your 2021 or 2020 tax return? It seems early to be getting a letter for the 2021 season.)
The letter is for 2021. Apparently they're quick this year for some reason. I didn't even send it in till two weeks ago. Maybe that's because I had to pay rather than getting a refund.
You can send a letter back explaining that you claimed the credit in 2008 and were making your regular payment.
Will do thanks!
