I owe back taxes , will the IRS offset my recovery rebate credit ?

[DoninGA]

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@Sugabear942 wrote:

I am very confused each TurboTax expert representative tells me a completely different story I was told literally by the IRS upon their needing to verify my identity that If I did not receive my Stimlus check in 9 weeks for the 1sr two payments file it as a recovery rebate line % 30 for my 2020 taxes an that No Stimlus payment could be taken or held back for any reason than IRS garnishing my wages or my wages being garnished period or child support those were the only reasons to hold Stimlus payments so there for now if IRS is specifically stating that we have to file it as Recovery Rebate in order to receive the 1st two if they were not received just so that they can take it

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IRS website for Recovery Rebate Credit FAQ's - https://www.irs.gov/newsroom/recovery-rebate-credit-topic-e-receiving-the-credit

Q E2. Back Taxes: Will the credit be applied to back taxes I owe? (added February 5, 2021)

A2.  Yes, it will be. The COVID-related Tax Relief Act of 2020 clarifies that while the Economic Impact Payments could not be offset for back taxes, an overpayment of your 2020 income tax liability including the Recovery Rebate Credit can be applied to pay them.

Q E3. Government Debts: Will the credit offset debts I owe to other government agencies? (added Febr...

A3.  Yes, it may be to the extent that you have an overpayment of your 2020 income tax liability. The Recovery Rebate Credit can be reduced to pay debts owed to Federal or state agencies.

[Sugabear942]

Ok I have a question if I filed in 2019 an it was a complete total nightmare just as it was this year I was told my taxes were being held up for not doing a 1095A form for market place health insurance I got it redid everything then the issues we they need to verify my identity I was then told that after my identity was verified I should receive a check in the mail in 9 weeks for the Stimlus go basically my question is I have not filed in over 17:18 years if I owed them should I have already been sent a letter from irs for the year of 2019 stating that I have a bill or is this supposed to be a game to tell the American people to file it as a recovery rebate file  so that they can step in an prevent you from getting it an every time I call TurboTax to speak with someone I get many different responses 

[Vcrandon]

Sorry to inform you but the IRS is most definitely seizing Recovery Rebate Credits, contrary to what is it isn’t legal.

My family never received all of our stimulus in 2020, so we made a claim on our 2020 tax return. We filed our 2020 taxes in January 2021, and our refund only consisted of the missing stimulus.

We were informed by the IRS in March 2021 that they reduced our refund to ZERO because it applied the 2020 Recovery Rebate Credit to an outstanding 2010 Federal tax obligation. I told the IRS what they were doing was against the law, but they said there was nothing we could do about it. To make matters worse, the IRS also placed a freeze on our account which is preventing us from receiving the 2021 stimulus as well. 

Be very careful thinking you will receive your stimulus if you owe back taxes.

[Vcrandon]

Here is an article written by Erin Collins (in March 2021), who is the National Taxpayer Advocate, about this very issue....

https://www.taxpayeradvocate.irs.gov/news/nta-blog-update-on-offset-of-recovery-rebate-credits-the-i...

[HelenC12]

@brooklynn8483

Whether the government can take your stimulus payments depends on which stimulus payment you're referring to.
 

The first stimulus payment is exempt from state and federal garnishment (with the exception of child support).

The second stimulus payment is protected from garnishment by all creditors, including private ones.

The third stimulus payment cannot be garnished for unpaid federal debts or back taxes. But the $1,400 stimulus checks can be garnished for unpaid private debts, such as medical bills or credit card debts, provided they are subject to a court order,

[katsdad36]

This is not a true statement, I never received the 2nd payment, did the recovery rebate with turbo tax and voila, the IRS kept it all for my back taxes. I have been trying to see if the IRS is going to send out any of the rebates to those this happened to, but no luck.

[DaveF1006]

This is true. If the Recovery Rebate Credit was reported in your return, the entire return was offset for those back taxes. 

[SweetieJean]

But see this:

NTA Blog: Update on Offset of Recovery Rebate Credits: The IRS Has Agreed to Exercise Its Discretion...

[Vcrandon]

My tax refund was seized by the IRS for the payment of back Federal Taxes owed by my spouse. The refund only consisted of the Recovery Rebate Credit (missing stimulus).

I enlisted the services of a Tax Advocate to help me because allegedly the IRS wasn’t going to seize RRC’s for back taxes.

After a long wait, the Advocate reported today that anyone that had their RRC seized would not be receiving their refund, even though the National tax advocate said to the contrary.

[KathrynG3]

Yes, it is true the Recovery Rebate Credit cannot go to back taxes as of March 18, 2021. However, it can be seized to pay other  Federal or state government agencies. This credit is part of your tax refund. Refunds are subject to offsets.

The first stimulus payment could be offset for any past-due child support, but the second and third stimulus payments cannot be offset for past-due child support.

Recovery Rebate Credit — Topic E: Receiving the Credit

Questions and Answers about the First Economic Impact Payment — Topic D: Receiving My Payment

Questions and Answers about the Second Economic Impact Payment under Receiving My Payment.

Questions and Answers about the Third Economic Impact Payment — Topic G: Receiving My Payment

@Vcrandon

[Pureluv]

Ok so I had to file a 2020 return in order to get my stimulus check. I haven’t gotten neither of my stimulus  but I owe child support. I’m supposed to get 1800 back but they saying it may be seized reduced or take all due to a debt which is child support. So basically I won’t get nothing.. recovery rebate credit 

[DoninGA]

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@Pureluv wrote:

Ok so I had to file a 2020 return in order to get my stimulus check. I haven’t gotten neither of my stimulus  but I owe child support. I’m supposed to get 1800 back but they saying it may be seized reduced or take all due to a debt which is child support. So basically I won’t get nothing.. recovery rebate credit 

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You are correct.  If you owe back child support then the federal tax refund can be seized for the child support you owe.  The Recovery Rebate Credit (stimulus payments Not received) is included as part of the federal tax refund.

[Pureluv]

What does seized mean exactly? And it also say I’m supposed to have something deposited in my bank account on November 8th 2021. So why would they say that I’m confused. Child support alreay took my 2018 return 

[DoninGA]

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@Pureluv wrote:

What does seized mean exactly? And it also say I’m supposed to have something deposited in my bank account on November 8th 2021. So why would they say that I’m confused. Child support alreay took my 2018 return 

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Seized means the refund can be taken from you.  But only for a debt that has not been paid.

Go to this IRS tax topic website for information - https://www.irs.gov/taxtopics/tc203

[Critter-3]

@Pureluv

Asking the same question on more than one thread  will not get you a new  answer.   If you have debts that can be offset by a federal refund the refund will be taken even if it includes the RRC. 

 Not sure who said you would get a refund on 11/8  but the only source you should be looking at is the IRS WMR? tool ... once you have filed successfully only they can say when the refund is being released and when.