Recovery Rebate Credit

[Redwren]

We filed married and income totaled $87k for 2021.  We received $2,800.00 in 2021 for 3rd round stimulus payment.   We claimed this amount in turbo tax under recovery rebate section.

IRS now send us a bill saying we owe $2,800.

What did we do wrong?

[NCperson]

@Redwren - what is on Line 30 of your tax return? any children or just the 2 of you.

Suggest going back into TT and review the Federal Review section and see what you entered for the amount you actually received for the 3rd stimulus.... when you state you 'claimed this amount', do you see it listed in the Federal Review section where you were asked about the stimulus???? 

[xmasbaby0]

Look at line 30 of your Form 1040.   Is it blank or is there an amount there?   If you already received the 3rd stimulus (EIP) in 2021 then you cannot get it again as a recovery rebate credit, so line 30 should have been blank.   

[Opus 17]

Turbotax automatically calculated that you were entitled to a $2800 rebate, then the program asked how much you already received.  If you had entered $2800 as the amount you already received, Turbotax would have subtracted that from the rebate and claimed zero on line 30.  I suspect you misunderstood the question or didn't read it carefully. 

[Redwren]

Line 30 has $2,800.   

When I read TT question it says does $2,800 match the amount on letter 6475 ?    We didn't get letter 6475, but we did receive $2,800 in 2021 so I entered that amount as being received.    

Did they give out 3rd round payments and now want recipients to pay it back ? 

[NCperson]

@Redwren 

you were eligible for the 3rd stimulus or the Recovery Rebate Credit but not both.

if you responded that you received the $2800 and have two people on , your tax return, then Line 30 would have been zero.  I suspect you did NOT respond that you received the $2800, but rather you did not receive anything.  Please go back into TT and review under the Federal Review section.

Since you already received the $2800 stimulus, then Line 30 should have been zero and if you follow the mach, that reduces the refund by $2800 (or increases what you owe by the same amount.).

They are not asking recipents to pay back the 3rd stimulus.  But you can't get the stimulus AND get the Recovery Rebate credit - it was one or the other.

[Redwren]

I went in and removed $2,800 from line 30.   Re-ran reviews no errors.    Now TT shows I owe $2,800 which matches what IRS states I now owe.   IRS adjusted our originally filing, sent letter regarding issue with recovery rebate.   

It looks like we really do need to pay rebate back from March 2021 based on TT and correction I made to line 30.        If not, I dont know how to make proper adjustment.   

[NCperson]

@Redwren - there is no need to adjust or amend the return in this instance..... you'll just need to pay the amount the IRS notes in the letter.  you can send in a check or pay it electronically:

https://www.irs.gov/payments