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The IRS reduced my refund by $600.00, I believe there was an error when I posted for deduction for employee-paid to IRA. What do I do now?

The $600.00 posted on line 30 on Federal as recovery rebate, but I don't see where my $600 should have been for my IRA
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2 Replies
DanaB27
Employee Tax Expert

The IRS reduced my refund by $600.00, I believe there was an error when I posted for deduction for employee-paid to IRA. What do I do now?

If you received the full first and second stimulus payments but claimed the $600 Recovery Rebate Credit then the IRS will correct the refund amount.

 

If you received Notice 1444 in the mail but have not received your payment as mentioned in the notice, then you need to request a trace to be able to claim the Recovery Rebate Credit on your 2020 tax return. Please see How do I request a payment trace to track my first or second Economic Impact Payments?

 

 

If you made contributions to a retirement account at work then this will be included on your W-2. You only need to enter your W-2, you do not enter this contribution anywhere else.

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The IRS reduced my refund by $600.00, I believe there was an error when I posted for deduction for employee-paid to IRA. What do I do now?

Did you make a 600 contribution to a Traditional IRA?

 

A common adjustment is if you claimed the Recovery rebate credit on 1040 line 30 when you already got the Stimulus payment or got the second one after you filed or reported the wrong amounts or entered them in the wrong box.

 

The IRS has been adjusting returns that claimed it but the IRS already sent it.  Did you get it after you filed?  

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