Difference between Letter 6475 and Bank Deposit

[nacs]

I am doing my taxes now - I know, I know - and the letters my husband and I got show an amount that is different from (higher) than what was actually deposited by the "Irs Treas" into our account on 3/17/21.  There are no other deposits from that source from 1/1/2021 to 12/31/21.  I am thinking my best option is to enter the amounts from our letters (add his and mine together) and then take any credit TT is showing at that point (the difference would mean a $118 credit to us).  Then should I run a trace on the missing amount between the letters and the deposits?  It amounts to more than $1400 we should have received.  Also on 1/4/2021 we have a deposit that is labeled "Federal Benefit Credit" and cannot find anything on the internet regarding what this would be for or who it is from.  We are not on Social Security or any other kind of Federal benefits so we have no idea what to do about this.  Just found it now when looking for the IRS deposits.  Any help would be MOST appreciated!

[DianeW777]

Enter into TurboTax exactly what you received.  If there was no IRS letter explaining the difference then you can let them respond if they disagree. At that time, you can take any necessary steps to obtain the difference if necessary.

Use the link below to check your IRS Online account and other details if you disagree with the letter.

• What people should do if their third economic impact payment is missing or incorrect

In summary, the amount you are entitled to is $1,400 per person listed on your tax return for 2021.

[DianeW777]

Enter into TurboTax exactly what you received.  If there was no IRS letter explaining the difference then you can let them respond if they disagree. At that time, you can take any necessary steps to obtain the difference if necessary.

Use the link below to check your IRS Online account and other details if you disagree with the letter.

• What people should do if their third economic impact payment is missing or incorrect

In summary, the amount you are entitled to is $1,400 per person listed on your tax return for 2021.

[nacs]

Thank you, Diane!  TT is saying $2408 is the amount we should get and I assume that is because of our AGI so there was some adjustment to the full amount of $2800.  No issue with that but I am really concerned because we owe taxes and I heard it is a nightmare if the IRS does not agree with the amount in your tax return.  I don't want to incur penalties/interest when the Jan 2022 letters were clear about the 2021 amounts.  But they don't match the deposit.  Also I am really at a loss as to what that 1/4/21 deposit was and what should be done about that.  Is it possible it is related to the EIP. even though they said the 2021 stimulus would be paid starting March 2021?

[RaifH]

The 1/4/21 deposit may have been the second stimulus payment that was reported on your 2020 taxes. It should have been $600 for each of you (although, again may have been reduced based on your income). It also may have been related to Social Security, but I would expect you'd see that every month, not as a one off. It can't have been related to the third stimulus, as no one knew there would be a third stimulus at that point. I suppose it is possible the IRS is miscalculating the amount they sent to you and somehow including that number. 

For the discrepancy on the third stimulus, you may want to create an account with the IRS to make sure that what they report in your online account matches what they reported on Letter 6475. Both you and your spouse would have to do this. You can then:

1. Log in on the IRS website 
2. Click on View Tax Records. 
3. Scroll down to Economic Impact Payment Information and click the + sign next to 2021 to view the amount of stimulus you received for Economic Impact Payment 3 which is what will be reported on your 2021 tax return. 

If the amount in your online account matches Letter 6475, and there is still a discrepancy with your records, you can request a payment trace from the IRS. See How do I request a Payment Trace to track my third Economic Impact Payments?

In the meantime, if you are hesitant to file using your records, knowing that it might get stuck in IRS limbo, you can file an extension to give the IRS until October 15 to see if you hear anything. An extension to file is not an extension to pay. If you anticipate owing taxes, you should pay the full amount owed by April 18 to avoid any late fees and interest. 

[nacs]

Thank you, Raif!  Unfortunately I am also stuck in an IDme nightmare, where I am locked out and when I try to get through their locked account process, they never send me an email to resolve it, no matter how many times I have tried.  I have raised a ticket with them but so far no sufficient replies to get me into my IRS account!  So I am stuck not being able to see what IRS has related to EIPs.  That is why I thought it might be better to go off the letters since it is all I am aware of that they have, and if they apply the only bank deposit I have then they are going to send me something saying I owe them the difference that amounts to what was in the letters.  Last year I had to send more money in and I think it may be related to this same type of thing.  If I send the lower amount of taxes owed and they come back and say I owe more. can I contest that and would Intuit TT help me since I am purchasing MAX?

[Vanessa A]

Yes and no.  You can contest anything, but it is not likely that it would do you any good.  MAX would not help with contesting it as this is not an accuracy issue this is a common dispute issue this year.

  If you do not think you received what the letter says, you should call the IRS to verify what they believe they sent you.  If you did not get the payments they claim you did, then you would need to ask them to reissue it separate from your return.  Entering what the letter says will be your best bet.  The IRS has been adjusting a lot of returns this year for both the stimulus payments and the child tax credit.  If their records show you received it, they will adjust your refund to match their records.