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WD4
Returning Member

Recovery Rebate Credit, IRS says

How did the IRS come up with stimulus tax credit of $3111.86 on my tax return when TT insists $3600 as the credit?  File joint, no dependents, less than $150k income, yes to question 2, line 10 $1200.

6 Replies
DoninGA
Level 15

Recovery Rebate Credit, IRS says

The IRS will be sending you a letter in 2-3 weeks explaining what they changed on your tax return to arrive at the federal tax refund you received.

WD4
Returning Member

Recovery Rebate Credit, IRS says

Thank you DoninGA, but I received the letter and every line the IRS shows me is correct (total tax calculations, taxable income income, total tax, tax withheld).  The only line different in the letter is where it states; "other credits, form 1040 SR lines 27-30, SCH 3 lines 8,10,11 and 12f, which all appear to match correctly, but instead of $3600 it states the credit is $3111.    Huh??

DoninGA
Level 15

Recovery Rebate Credit, IRS says


@WD4 wrote:

Thank you DoninGA, but I received the letter and every line the IRS shows me is correct (total tax calculations, taxable income income, total tax, tax withheld).  The only line different in the letter is where it states; "other credits, form 1040 SR lines 27-30, SCH 3 lines 8,10,11 and 12f, which all appear to match correctly, but instead of $3600 it states the credit is $3111.    Huh??


There should be a phone number or a process to use on the letter received if you disagree with the IRS or have further questions.  If the IRS does not show an actual change on the return you filed but only a new refund amount then you need to speak with an IRS agent.

WD4
Returning Member

Recovery Rebate Credit, IRS says

Donin, obviously, I can read the form the IRS sent me.  My wish was someone would give me a quick reply that might save me the time sitting on-the phone forever waiting for the IRS to come on and give me the answer.  Just guessing that nearly every question can be answered by calling the IRS.  You cured me of ever considering coming to this site for answers.

NCperson
Level 15

Recovery Rebate Credit, IRS says

@WD4 - understand that without seeing your tax return numbers, we are all guessing, so give these fellow community members a break - no one is getting paid for this.

 

But let me see if I can help....... the fact that the Recovery Credit is such an odd number means that the IRS saw your income as over the limit.  $3600 - $3111 = 489 and if I divide that by .05 I get $9780, so I wonder if your adjusted gross income is $159,780??????   (or if single, your adjusted gross income is $84, 780) If you income is over $150,000, then the stimulus gets reduced by 5% for every dollar over $150,000.

 

what is your reference to 'question 2, line 10' - what form are you referring to ????

 

does that give you any clues? 

 

otherwise, please post the following from your 2020 tax return and I can figure this out: 

 

1) how much you ACTUALLY received for each of the first two stimulus payments? list each one separately please

2) number of children under the age of 17 as of 12/31/20.

3) your adjust gross income (line 11 on Form 1040)

4) I assume you are filing joint in 2020 . please confirm 

5) did you have an unemployment income? if so, how much? 

SweetieJean
Level 15

Recovery Rebate Credit, IRS says

The 2020 Recovery Rebate Credit can be reduced to pay debts owed to other Federal government agencies (separate from federal income tax debt), as well as to state agencies.  Keep in mind that the credit is part of your tax refund, and your tax refund is subject to offset.

Recovery Rebate Credit Frequently Asked Questions | Internal Revenue Service (irs.gov)

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