Are there Any update on stimulus deposits that was rejected

[Irene2805]

#5580642

Yes. You can find the most up to date information at IRS Updates on the Second Stimulus and TurboTax Updates on the Second Stimulus.  

In the rush to get the stimulus payments out the IRS sent some payments to an account that may be closed, is no longer active, or unfamiliar. By law the financial institution must return the payment to the IRS.   

You can confirm the status of your stimulus payment at Get My Payment.   

• If it shows a direct deposit date and partial account information, then your payment is deposited there.  

• If it shows a date your payment was mailed, it may take up to 3 – 4 weeks for you to receive the payment. Watch your mail carefully for a check or debit card.   

• If it shows "Payment Status #2 – Not Available," then you will not receive a second Economic Impact Payment and instead you need to claim the Recovery Rebate Credit on your 2020 Tax Return.  

If you paid for TurboTax with your refund last year, we have given the IRS your correct account information and you can expect the IRS to make a second attempt within the next few days.  

[sfalvo]

Hello I filed my 2020 taxes through turbotax on 02/22/2021 I received a letter from the IRS saying I have to verify everything... when I tried it was telling me that their information does not match mine... can you please help me with this?

[JotikaT2]

You will need to wait until the IRS notifies you of the results of their review.

Depending upon the notification sent to you by the IRS, they could be reviewing anything so it's hard to pinpoint exactly what is happening.

Types of IRS notices

[hell1976--]

Noi haven't received any information about  anything do I need to  do  anything  on  my  behalf 

[Cynthiad66]

Rejected stimulus payments does not require any action on your part.  IRS will eventually reconcile your Stimulus account and send the difference to you in a check.

[Spize66]

Please tell me if my return was filed

[Spize66]

Please I need help

[CatinaT1]

Have you checked Where's My Refund?

According to this IRS update as of April 23rd:    

The IRS is now opening mail within normal timeframes. The IRS has also made significant progress in processing prior year returns. As of April 16, 2021, we had 1.5 million individual tax returns received prior to 2021 in the processing pipeline. Including current year returns, as of April 16, 2021, we had 16.1 million unprocessed individual returns in the pipeline. Unprocessed returns include those requiring correction to the Recovery Rebate Credit amount or validation of 2019 income used to figure the Earned Income Tax Credit (EITC) and Additional Child Tax Credit (ACTC). This work does not require us to correspond with taxpayers but does require special handling by an IRS employee so, in these instances, it is taking the IRS more than 21 days to issue any related refund. If, as a result, a correction is made to any RRC, EITC or ACTC claimed on the return, the IRS will send taxpayers an explanation. Taxpayers are encouraged to continue to check Where’s My Refund? for their personalized refund status and can review Tax Season Refund Frequently Asked Questions.   

How long you may have to wait: The IRS understands the importance of timely processing of tax returns and refund issuance. We are processing returns received over the summer and fall in 2020 due to the extended July 15, 2020 tax filing due date. While the majority of 2019 refund returns have been processed, in some cases, we are processing tax returns that were mailed with a payment even though payment associated with these returns have been processed by the IRS. However, we are rerouting tax returns and taxpayer correspondence from locations that are behind to locations where more staff is available, and we are taking other actions to minimize any delays. Tax returns are opened in the order received. As the return is processed, it may be delayed because it has a mistake including errors concerning the Recovery Rebate Credit, is missing information, or there is suspected identity theft or fraud. If we can fix it without contacting you, we will. If we need more information or need you to verify that it was you who sent the tax return, we will write you a letter. The resolution of these issues depends on how quickly and accurately you respond, and the ability of IRS staff trained and working under social distancing requirements to complete the processing of your return.   

What you should do: If you filed electronically and received an acknowledgement, you do not need to take any further action other than promptly responding to any requests for information. If you filed on paper, check Where’s my refund? If it tells you we have received your return or are processing or reviewing it, we are processing your return, but it may be under review. We’re working hard to get through the backlog. Please don’t file a second tax return or contact the IRS about the status of your return.   

[jboclo]

The IRS disallowed the 2021 stimulus payments (2 of $1400 dollars each) reported on line 32 of our tax return due to one of five possible reasons listed in the IRS letter and received by us on 4/4/2022.  Below are the points made in the IRS letter regarding their denial of this adjustment and my best responses.

1.The Social Security numbers of one or more individuals claimed as a qualifying dependent do not match our (IRS) records.  ANSWER:I have checked the Social Security numbers on our1040-SR 2021 tax form and found them correct.

  2.One or more of the individuals claimed as a qualifying dependent  exceeds the age limit.  ANSWER: The only information  shown on the IRS form regarding age shows  both dependents were born before January 2,1957.

3.Your adjusted gross income exceeds $150,000 if married and filing jointly.  ANSWER:  On line 15 of our 1040-SR 2021shows our adjusted gross income as $$56,103.  Certainly below the $150,000 as shown on the tax form.

4.  The amount was computed incorrectly.  ANSWER:  That could be a Turbo Tax issue.

5.  The last name of one or more individuals claimed as a qualifying dependent does not match our (IRS) records.

     ANSWER: The names on the 1040-SR 2021  are accurate regarding our recent past tax form filings.  (2116-2020) 

So, what's next,  Jon Olson  [phone number removed]  [email address removed]

[DoninGA]

@jboclo 

If your refund is short $2,800 then that is because you said you did not receive the 3rd stimulus payment and the IRS has records that show you were sent the 3rd stimulus payment so they removed the $2,800 Recovery Rebate Credit that was entered on Form 1040 Line 30.

Go to this IRS website for your tax account to see if the 3rd stimulus payment is entered - https://www.irs.gov/payments/your-online-account
If you are Married Filing Jointly also check your spouse's tax account.

If you checked your bank account in the March - May 2021 timeframe and there is not a $2,800 EIP3 payment from the IRS then go to this IRS website for how to start a trace on the payment - https://www.irs.gov/newsroom/questions-and-answers-about-the-third-economic-impact-payment-topic-j-p...