TurboTax did not calculate recovery rebate credit

[wzy]

Based on my AGI of 2020,  I'm eligible for both EIP1 and EIP payments. But I only got a small portion of EIP1 and $0 for EIP2.  SO I should get the recovery rebate credit. On TurboTax, when asking to provide my EIP1 and EIP 2 payments, I did. However, the recovery rebate credit was not calculated by TurboTax, i.e., line 30 is empty. I believe TurboTax has a bug. I am wondering if anyone else has got the same issue. Tried to contact TurboTax for help, but there is no customer service (or at least I could find one).

Also, now since I already filed my tax return, what would be best way to get the recovery rebate credit I deserved. Any help is appreciated.

BTW, I was using TurboTax CD on my Windows machine.

[SweetieJean]

The Recovery Rebate Credit phases out at a certain income level.  What is your filing status, and the amount on Line11 of Form 1040?

[JotikaT2]

The amount of the Rebate Recovery Credit is based upon your actual 2020 income tax return you file.  Therefore, if you meet the criteria for the credit, you will receive it when you prepare your 2020 income tax return.  The credit is intended to give those who should have received a stimulus payment but never did a tax credit on their tax returns.  Any excess credit is then refunded to you if there is an overpayment on your tax return.

Please see the attached link for more information on who can claim the credit.

Recovery Rebate Credit eligibility

If you filed your tax return and did not have the Recovery Rebate Credit on it but you were entitled to it, you will need to file an amended return to claim it.

Correcting Recovery Rebate Credits on returns already filed

How to amend my return?

[NCperson]

@wzy - Line 30 is based on your 2020 income, filing status and number of dependents under the age of 17

LESS 

what you received on the 1st two stimulus payments 

the result can not be less than zero. 

if you want to provide more details, I am happy to explain the math .....or you can use the official IRS worksheet that TT is using - see page 59 

https://www.irs.gov/pub/irs-pdf/i1040gi.pdf

[wzy]

Thank you very much for replying to my question. Looks like I have to file an amended return. Too bad.

I did everything correctly as always (I have been using TT for many years) and I firmly believe it's the buggy TurboTax that made the error - failed to calculate recovery rebate credit for me. I am disappointed by TT. I am not sure if I will continue to use TT next year.

Once again, thanks.

[NCperson]

@wyz - why are you confident that TT was buggy? is it possible you misunderstand how the Recovery Credit works and are going to do a lot of work for nothing?

if you post the following, I can quickly explain the math and might save you a lot of time and effort for naught: 

1) how much was each of the 1st two stimulus payments?

2) what was your income on Line 11 (your AGI) - I suspect this will be the issue.

3) your filing status (married, single, etc)

4) number of children under the age of 17 as of 12/31/20 (i.e. born on or after 1/1/04)

[judybergquist]

TT did mine wrong too!  Filing Joint AGI was $120,000. First stimulus payment was $1929, second was $949. TT calculated $1671 for rebate. Should have been (1st stimulus $2400, second $1200) so $3600 minus 1929 and 949. = $722 not $1671.  Can I get anything back from turbo tax’s guarantee?

[Bankage]

I have the same issue.  I plugged the numbers in using TurboTax online, but it didn't calculate correctly, showing $402.  I found out with a letter from the IRS today, stating the amount was miscalculated and that I owe an additional ~$1400, on top of the ~1300 mailed in on tax day.  I didn't manually calculate everything on my tax forms to verify the amounts before I eFiled, as I trusted TurboTax to do that correctly.  Looking at the printed 1040, I can easily spot the error.  I owe it fair and square, it's just irritating having to rehash 2020 taxes and pay more.  To make things more weird, I received a Treasury check for almost $300.  The note on the check says it's for some stimulus money I was supposed to receive.  

[calcounty]

My credit is also incorrect even though TT did all the calculations. Filing jointly, we received all stimulus payments ($3600) and are well below the $150k limit. TT gave us a $1200 credit (I didn’t think to question it), and now IRS has contacted me to tell us the credit was incorrect. 

[VolvoGirl]

@calcounty  Did you enter the 3,600 you received?   You should have entered 2,400 in the first box and 1,200 for the second box.   Sounds like you didn't enter the right amount in each box.   Or maybe you got the second Stimulus payment after you filed?  So you didn't include it?  That is common.

[calcounty]

I entered the $2400 and the $1200. AGI was $21k under the joint limit. TT incorrectly gave us a $1200 credit, which I didn’t question. All I remember doing at the time I did my return was verifying the payments. 
I paid the extra amount to IRS but am puzzled why TT gave us the credit in the first place since we did get our two rounds of full payments. 

[VolvoGirl]

We may never know what happened.  Too bad you didn't question it at the time since you knew you already got the full amounts.  

[calcounty]

Well, sure. In an odd year of those payments, I wasn’t sure how any of it was supposed to work. No big deal since I shouldn’t  have gotten the credit. I’ll know to look closer for 2021!

[nkeyes]

They **bleep**ed up mine too. The only reason I payed for TT this year was because of the fraudulent amount they presented to me. Where do I go, or who do I talk to for a refund?

[xmasbaby0]

@nkeyes We cannot see your tax return or your information.   You have not provided any details to support the idea that TurboTax messed up your tax return.   Lots of people made mistakes when they completed the section for the recovery rebate credit.   The IRS has had to cross check every tax return with an amount on line 30 for the RRC.   If they see that you already received the EIP payment(s) but claimed it again on line 30, they reduce your refund.

If you need to have a discussion with customer support:

To call TurboTax customer support

https://ttlc.intuit.com/questions/1899263-what-is-the-turbotax-phone-number

Customer support is available from 5 a.m. to 5 p.m. Pacific time Monday-Friday.