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.
The Recovery Rebate Credit phases out at a certain income level. What is your filing status, and the amount on Line11 of Form 1040?
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
@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
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.
@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)
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?
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.
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.
@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.
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.
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.
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!
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?
@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.
Now why, exactly, do you think I need to provide YOU with details that support my claim? I answered the questions TT asked accurately and completely. TT came up with it's value. TT came up with this value wrong. I don't really care why, but even a moments look at this forum makes it clear that TT dropped the ball.
And thank you, I submitted for my refund last night.
@nkeyes Broad statements that the software made a mistake are not helpful to anyone. We have no way to know if you actually made your own user error (which is very common) or if something happened with the software that led to your problem. Some details (without any of your personal information) could be helpful to others in the forum.
TT got mine wrong too but I’m a different way. I stated I received 4200 in stimulus check but they still claimed 4200 as rebate credit! This resulted in TT claiming a total of 5899.00 in tax return. One would get excited and confident that TT would be accurate with the money they claim. I went ahead and made a budget for that money and yesterday I got my refund for only 1699.00.
I found this error while comparing my transcripts against the filed tax return.
It is a very huge mistake from TT to ask you if you got the EC and then claim the rebate after you told them you received the money, hence you shouldn’t claim the rebate. Very disappointing.
Same thing happened to me Yohsay, with a different amount. IRS sent a letter in Jan 2022 stating I received the stimulus in 2021. However, looking at last year’s deposits, it hit in Dec 2020–and I reported it last year. I got dinged last year AND this year for the same stimulus money. Both times, IRS “corrected” my refund with less money.
@Bankage The letter the IRS sent to you in January 2022 was not about the 2nd stimulus check that you received for $600. You got "dinged" last year because you were supposed to report that $600 on your 2020 tax return. By not reporting it correctly, you put it on line 30 of your 2020 return, and then the IRS took it away because you could not get it twice.
That letter 6475 that you got in 2022 was for the 3rd EIP---the one for $1400--- those checks began to go out in mid-March and onward in 2021. Check your bank records for a deposit of $1400 per person starting in mid-March of 2021. That is the one you had to answer questions about when you prepared your 2021 tax return. You can also check your online account with the IRS:
In my situation, I didn’t get the $1400 in 2021. I received and reported it in 2020, but then IRS corrected my 2020, and I had to pay more.
I went through all deposits in 2021 and never received one from IRS.
when I received the letter from the IRS in 2022 stating I received the $1400 payment in 2021, I found the payment in 2020, but nothing in 2021. I went ahead and reported the $1400 as instructed by the IRS letter. My refund was $1400 less than when I filed it. IRS sent me a letter a week ago, stating my refund was corrected, due to the stimulus payment being calculated incorrectly.
All this to say is, I wish the US would stay out of my bank account. I didn’t ask for the stimulus, and the rules for what to do with it feels like money laundering on a civic level.
Check your IRS account (both accounts if married)
Your Online Account | Internal Revenue Service
If the IRS thinks they sent it to you but you didn't get it request a trace for a missing third Stimulus payment
Please help me. I didn't get all my refund. The stimulus 4200.00. Please get my refund.
First, determine if you received one at Third Economic Impact Payment. Check your bank records and verify you did not receive it already.
If the IRS thinks you got it and you are you did not, then you will need to request a payment trace, call 800-919-9835 or fill out IRS Form 3911, Taxpayer Statement Regarding Refund.
@drahoskathleen