Recovery Rebate Credit

[zigza]

I had the same thing happen to me - our AGI was above the $150 k, so the software shouldn’t have given us the credit. In our case the penalty was only a few dollars - although it sucked having to pay ~$1100 unexpectedly. It’s disconcerting though  that there was a mistake with the software.

[VolvoGirl]

That is just one of the generic reasons why they adjusted line 30 even though you are above the AGI.   Did you get any of the 3rd Stimulus they sent out last year starting in March 2021.   It was based on your 2020 or 2019 tax return but if you got too much you don't have to pay it back. 

You can qualify for some between 150,000 and like 179,000.  Turbo Tax would not give you any Recovery Rebate Credit if your AGI was too high.  How much was on line 30?  The IRS knows they already sent it to you so they took it off.    Line 30 is only if you didn't get the full amount or qualify for more.

Double check your bank accounts and check your IRS account (both accounts if married) to see how much the IRS sent you last year.
https://www.irs.gov/payments/your-online-account

If you didn't get the 3rd Stimulus check but the IRS shows they sent it to you then request a trace for a missing third Stimulus payment
https://www.irs.gov/newsroom/questions-and-answers-about-the-third-round-economic-impact-payment-top...

[NCperson]

@zigza - here is the issue - EVERYTHING in the calculation is automated by TT EXCEPT where it asks you to enter what you received for the 3rd stimulus last year. 

The phaseout for the 3rd stimulus began at $150,000 (joint return) and ended at $160,000 ( @VolvoGirl ).  So I suspect your income was in that range.  TT would have calculated the benefit using your AGI on the 2021 Tax return.

I suspect you received stimulus last year but failed to enter that amount when prompted by TT.  That would result in the calculated benefit less zero to be entered on Line 30.  

There was no mistake in the software - there is probably a mistake in the data entry, meaning what you received last year for the 3rd stimulus. Sorry for the bluntness.