Recovery Rebate Credit

[medotaxespls]

I filed a 1040-SR form though Turbo Tax in March. Did rec. my state refund in April.  Did not rec. my Federal refund until the beginning of August.  It was less than calculated on my return.  On August 23, I received a Notice from the IRS saying that basically they deducted the Recovery Rebate Credit of $600. from my refund

stating a miscalculation.  I had entered 600.00 on line 30.  I do not understand the "penalty".  

I have had one phone conversation with an IRS rep.regarding this situation and did not get an explaination.

Please help me understand what has happened or help me recover the 600.00. 

[DoninGA]

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@medotaxespls wrote:

I filed a 1040-SR form though Turbo Tax in March. Did rec. my state refund in April.  Did not rec. my Federal refund until the beginning of August.  It was less than calculated on my return.  On August 23, I received a Notice from the IRS saying that basically they deducted the Recovery Rebate Credit of $600. from my refund

stating a miscalculation.  I had entered 600.00 on line 30.  I do not understand the "penalty".  

I have had one phone conversation with an IRS rep.regarding this situation and did not get an explaination.

Please help me understand what has happened or help me recover the 600.00. 

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If the IRS removed the Recovery Rebate Credit from your 2020 federal tax return it was more than likely because the IRS has records showing that the second stimulus payment of $600 was sent to you already.

Look at your tax account and it will show the stimulus payments sent by the IRS to you - https://www.irs.gov/payments/view-your-tax-account

If you never received the second stimulus payment then you can request a trace on the payment from the IRS.  Go to this IRS website for initiating a trace - https://www.irs.gov/coronavirus/second-eip-faqs#paymentlost

How do I request a payment trace to track my first or second Economic Impact Payments? (updated Augu...

[Opus 17]

If you are single, you would be entitled to a stimulus payment of $600 (round 1, paid from April-July 2020) and $600 from round 2 (paid from December 2020-February 2021--the round 2 payment is considered for 2020 even though most people weren't actually paid until 2021.). The IRS would also mail you a letter 1444 and 1444-B to state the amounts of the payments.

Turbotax asks if you received these payments, if you say no, Turbotax will claim a rebate for you.

If Turbotax claimed $600 and the IRS removed it, that indicates that you told Turbotax that you only received $600, but the IRS thinks they sent you $1200.

If you received $1200 in stimulus payments, then you made a mistake on your tax return and are not entitled to additional funds.  If you only received $600 but the IRS thinks they sent $1200, then you have to trace the missing payment, you can't get it on your tax return.   See question F3 here,

https://www.irs.gov/newsroom/2020-recovery-rebate-credit-topic-f-finding-the-first-and-second-econom...

[VolvoGirl]

@Opus 17  The 1st round was $1,200 (2,400 married) and 500 for each dependent under 17.  2nd round was 600 per person. So for Single the total would be 1,800.     

[Opus 17]

Right.  Sounds like the taxpayer did not report round 2 after the IRS believes it was sent.