If Turbotax checked my return and didn't find anything wrong, I don't have a dependent anymore and our gross income was within the limits mentioned in the IRS notification, what can this be other than a Turbotax error? Did I miss something?
Ok ... I got your answer ... you filed married with one child on the 2020 return correct ? That would account for the $4200 third stimulus check you got ( the second one that came in Jan does not get reconciled on the 2021 return). So you needed to enter 4200 once ( or 2100 you and 2100 spouse) when asked how much you got in advance. If you only answered 2100 and you are filing a joint 2021 return with no dependents then the program thought you were short $700 since you should have gotten 2800. This was a data entry error on your side and the IRS caught the error and corrected it automatically. You probably only got one IRS letter 6475 reporting 1/2 of the stimulus payment so you misread the screen instructions which is a common error this year and last while trying to reconcile this blasted stimulus payments.
$700 is an 'odd' number for the recovery rebate credit
What did you have on Line 30 of Form 1040?
There was a question in TT asking how much you received for the 3rd stimulus. How did you answer that question? it asked if you received it and if you answered yes it asked to confirm how much you received.
What did you enter for the third stimulus payment in the program ? How much did you get paid in advance ?
Review the IRS notice and your return carefully to see where the error happened.
There's exactly $700 in line 30. Whatever I answered was based on what I found that was deposited on my bank account (direct deposit by the federal government). I have just checked that there was one $1200 deposit in January 2021 and one $4200 deposit in March 2021. I don't see why I would answer $700. I think I remember being asked if I received a third deposit -- if that happened, I would have answered "no", because it didn't happen.
Ok ... I got your answer ... you filed married with one child on the 2020 return correct ? That would account for the $4200 third stimulus check you got ( the second one that came in Jan does not get reconciled on the 2021 return). So you needed to enter 4200 once ( or 2100 you and 2100 spouse) when asked how much you got in advance. If you only answered 2100 and you are filing a joint 2021 return with no dependents then the program thought you were short $700 since you should have gotten 2800. This was a data entry error on your side and the IRS caught the error and corrected it automatically. You probably only got one IRS letter 6475 reporting 1/2 of the stimulus payment so you misread the screen instructions which is a common error this year and last while trying to reconcile this blasted stimulus payments.
Thanks, that makes sense, but I don't see how I would know all that from Turbotax's questions. I think it should be a little more well-explained. My son was indeed a dependent for exactly half of the year, I did his return for the first time this year, so this was another complication, but what he will receive back is exactly $1400, both rebate credits.
So you are not claiming him for 2021? But you did for 2020? When Turbo Tax said you were eligible for the 2800 3rd Stimulus payment you only entered 2100 from one letter 6475 you got. That was only for half. The other spouse should have also got a letter for their half. Check your bank account. You should have got 4200 starting last March 2021 (1400 for 3 people).
All you had to enter was the total amount you got for the 3rd Stimulus. Then Line 30 is only if you didn't get the full amount or qualify for more. You got 4200 based on 2020. But you only qualify for 2800. The good news is you don't have to pay back the 1400 you got for him and he can also get the 1400 on his return.
What do you mean he is getting both rebate credits? 1400 is only the 3rd one.