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Level 2
March 4, 2021
Question

Stimulus paid wrong amount

  • March 4, 2021
  • 5 replies
  • 4 views

I am married (filing jointly) with two kids, one of which was born in 2019.  I filed my taxes early enough in 2020 that the stimulus payments we received were based off my 2019 taxes instead of 2018 because we are in the phaseout and made less in 2019 than in 2018.  We only received the stimulus payment for one child on both the first and second stimulus.  I called and tried to get it figured out and they always told me that it would need to be corrected on the 2020 taxes.  So now I'm filing my 2020 taxes and we made more in 2020.  When I complete the Recovery Rebate Credit Worksheet it is based on my 2020 AGI which is higher than 2019 so now it says I don't qualify for the additional payment that I missed out on last year because they made an error and didn't pay us for two kids.  If they had paid us when they were supposed to pay us for them we wouldn't have to pay it back though.  Is there any way to get this corrected?  I've spent A LOT of time on the phone with people in the IRS who just can't wrap their head around the situation or are defiantly wrong about how the process works.  Thank you for your help!

    5 replies

    DoninGA
    Level 15
    Level 15
    March 4, 2021

    IRS Recovery Rebate Credit website - https://www.irs.gov/newsroom/recovery-rebate-credit

     

    Economic Impact Payments were based on your 2018 or 2019 tax year information. The Recovery Rebate Credit is similar except that the eligibility and the amount are based on 2020 information you include on your 2020 tax return.

    Level 2
    March 4, 2021

    Thank you for the response but that doesn't do anything to answer my question.  The payment sent to us last year was incorrect.   If they had overpaid us last year then we wouldn't have to pay it back, but they underpaid us and now we can't get the remaining balance.