Recovery Rebate Credit Destroyed my Family

[snaphappy]

I've used TurboTax for over TEN YEARS. Look it up. I'm not exaggerating. Every year I pay for the highest level with audit protection. 

I AM A GOOD CUSTOMER.

For the first time EVER I got a letter from the IRS explaining that TurboTax did my taxes wrong and that I owed the IRS double. This is all because the TurboTax software gave my family a Recovery Rebate Credit when we were ineligible. I literally don't even know what the Recovery Rebate is. I've trusted TurboTax for 10+ years followed the prompts and never had a problem.

We are self-employed. Finding out we owe the IRS double destroys our family. This is my daughter's first year of college. We are DYING financially because of covid and we're barely surviving. 

LOOK AT YOUR FORUM. YOU DID THIS TO DOZENS OF REAL PEOPLE. It's devastating. I don't know what we're going to do.

[VolvoGirl]

The Recovery Rebate Credit is on your 1040 line 30.  It is for the  3rd Stimulus payment.  Did you not get any of the Stimulus payment that came out in March 2021?  The IRS records show they sent it to you.  You tried to claim it again on line 30. Did you get letter 6475 telling you how much you got?  Each spouse should get a letter for half but you needed to enter the total.  

1400 is for the 3rd Stimulus payment for each person.  It is on 1040 line 30.   Line 30 is only if you didn't get the full amount or qualify for more. 

If you claimed a missing stimulus payment on your return but the IRS took it off you have to ask the IRS. They think they already sent it to you.  Maybe it went to an account you don't remember. Or you got a check or a card. It was probably easy to miss the debit card in the mail and think it was junk mail. They have to put a trace on it.

Double check your bank statements and Check your IRS account to see when and what they sent you (check both spouse's accounts if married)

Your Online Account | Internal Revenue Service

If the IRS thinks they sent it to you but you didn't get it request a trace for a missing third Stimulus payment

https://www.irs.gov/newsroom/questions-and-answers-about-the-third-economic-impact-payment-topic-j-p...Your Online Account | Internal Revenue Service

[snaphappy]

You don't understand the problem at all. But actually, you probably do and just don't care. 

I followed the software prompts. The software determined I was eligible for the Recovery Rebate. We put our trust in TurboTax to find these things FOR US. That's literally what you guys advertise.

LOOK AT THE FORUM. 

This happened to LOTS of people. 

I'd recommend admitting the mistake and making it right. 

[VolvoGirl]

A lot of people answered the Stimulus questions wrong.  And not just on Turbo Tax.  How much did you get last year for the 3rd Stimulus payment?  It was 1400 per person.  Do you have 1 dependent or more?  For married with 1 dependent you should have got 4200 (1400x3).   How much was on line 30?  Did you check your bank account?  You didn't get any 6475 letters?

Sorry there is nothing you or Turbo Tax can fix or amend for.  The IRS adjusted your refund.  If you didn't already get the 3rd Stimulus payment last year the IRS has to put a trace on it.

[snaphappy]

TurboTax put the question there. Customers did not ask the question. Because customers have no idea what a "Recovery Rebate" is. TurboTax engineered this situation. Do you understand that? 

Use your eyes friend, LOOK AT THE FORUMS. There are a lot of people, A LOT, and all are low income. That's not a good look

[xmasbaby0]

Sorry----millions of people throughout the U.S. ---not just users of TurboTax------have become very confused by the recovery rebate credit and the child tax credit on their 2021 returns.   The third stimulus checks were sent out in mid-March to May last year and were for $1400 per person.   If you received that stimulus payment then the IRS also sent you letter 6475 about it.   When you were asked during the preparation of your tax return if you received that $1400 per person stimulus amount you were supposed to answer correctly that you received it.  If you did NOT receive that money  then you could say no you did not get it, and it would have been put on line 30 of your Form 1040   as a "recovery rebate credit" of $1400 per person on your tax return.   But you cannot get that money twice.   So if you received it, and said incorrectly that you did not  already get it (because you did not understand what "recovery rebate credit" meant) then the IRS took it away from your refund.

Check your 2021 bank records for deposits of $1400 per person.   And check your online IRS account to see what the IRS shows that they sent to you.  If you filed a joint return you have to check the IRS accounts for EACH of the spouses under each of your Social Security numbers.

https://www.irs.gov/payments/your-online-account

If you need to trace a payment that the IRS says has been issued to you, mail or fax a completed IRS Form 3911, Taxpayer Statement Regarding Refund.

[snaphappy]

You corporate people have one job. To deny deny deny. I get it. You don't care about low income families. You don't care that TurboTax software created this prompt in their software, asked us this question, and then said "Congratulations! You qualify for the Recovery Rebate." 

This entire situation was engineered by TurboTax software with a prompt

[xmasbaby0]

Whatever you now owe to the IRS is what you would have already owed even if you had not been confused about the recovery rebate credit.   You did not lose a refund you were entitled to receive.   You lost a credit for money you could not receive twice.   So you would have had tax due no matter what.   Yes, we know it is a jolt to expect a refund and find out that you owe instead.   We sympathize---a lot.   But if you were confused while doing your tax return you could have asked "What is the recovery rebate credit?" in the forum.    TurboTax did not dream up that term---that is what it is called on the IRS Form 1040, and the questions asked you specifically enough about the $1400 per person Economic Impact Payment and letter 6475.    When you did not understand and then answered incorrectly, it put that amount on line 30--next to the words "recovery rebate credit."

There were very similar questions on your 2020 tax return when you had to enter whether you received the first or second stimulus checks.   Did you make mistakes on that one?   Or did you understand that you had to enter whether you received the 1st and 2nd stimulus checks?   There was a recovery rebate credit on the 2020 tax return form as well---also on line 30 for tax year 2020--so that people who did not get the stimulus checks could get it on their 2020 return.

[xmasbaby0]

We do not work for TurboTax.   We are not employees.   We are  UNPAID volunteers who come to the forum to help other users.

[mesquitebean]

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@snaphappy wrote:

You corporate people have one job. To deny deny deny. I get it. You don't care about low income families. You don't care that TurboTax software created this prompt in their software, asked us this question, and then said "Congratulations! You qualify for the Recovery Rebate." 

This entire situation was engineered by TurboTax software with a prompt

---

Sorry you're having that bad experience, but there are no corporate people in this thread--only fellow users who voluntarily posted.  This is mainly a user community forum--not a direct route to folks at TurboTax Support.   TurboTax folks will not likely read this thread and won't be aware of your complaint.  They don't tend to read the forum except during filing season when some TurboTax employees answer tax questions.

If you want to share your experience with the Intuit Corporate office, here's how.  You can go to the page below. Just below the page's main header tabs, you'll see a screen-wide blue banner that prominently says:

"Do you have a question, concern, or feedback about an Intuit product or service?"

There is a "Send an email" link.  It goes to a designated person in the office of the president of Intuit, and they supposedly will assign it to the right team for review.

NOTE:  Do NOT send any sensitive personal data since that is regular email--not secure email.

https://www.intuit.com/company/executives/

[snaphappy]

None of us would have asked for this Rebate unless the TurboTax software prompted us to ask for it.

End of discussion. 

[snaphappy]

That's the most ridiculous thing you've said so far. You're on this forum arguing with me for free? When you could be spending time with your family? 

LITERALLY NO ONE WILL EVER BELIEVE IT.

YOU ARE PUBLICLY DEFENDING A MASSIVE CORPORATION.

No one will ever believe you're doing it as volunteer. Laughable

[VolvoGirl]

You never answered my questions.  Your 2021 return starts out by assuming you didn't get any Stimulus payments so it gives you credit for the full amount and your refund was too high.  Then near the end you enter how much you actually got so it only gives you the difference if any.  Obviously the IRS thinks they already sent it to you but you didn't enter the amount you already got.  

Did you see these screens when you filled out your return?  See Critter's screen shots

https://ttlc.intuit.com/community/after-you-file/discussion/irs-notice-error-in-2021-form-1040/00/27... 

[snaphappy]

Ah but now you've trapped yourself. You've admitted the software assumes you didn't get a stimulus and prompts you as such. That's not going to look great in court friend.

I'm already in communication with a lawyer. Class action lawsuits costs us nothing as customers. But they're gonna cost your company a lot of money. 

Your software engineered this problem. You know it, you're terrified, and you want to silence us. That's why you're all gaming up on us. 

Thank god for the legal system!

If you're reading this, information about the class action lawsuit will be on reddit, search there

[snaphappy]

Here's your answer, line 30 $2100. Makes no sense whatsoever