The 3rd EIP payment is based on your 2021 income.   When Congress passed the 3rd stimulus they wanted the checks to go out in a hurry so the IRS used 2020 returns to hustle the checks out.   If you received the payment you do not have to pay it back even if your 2021 income is above the limit.   BUT ....it is really a credit based on your 2021 income----so on a 2021 tax return you have to use the recovery rebate credit in Federal Review to get it.

The IRS sent out letter 6475 to show what you received for the 3rd EIP payment.

If your 2021 AGI is too high you only receive a phased out amount--or maybe nothing.   If you are getting the credit it will show up on line 30 of your Form 1040.   If it is not bringing up the window for you to enter anyting to get the credit----your AGI is likely too high.

I received my 2021 Federal refund but it does not include my Recovery Rebate Credit of $2800.00

The IRS sent out letter no 6475 to those who were paid the third stimulus.

Check your bank statements to see if you received the third stimulus in 2021.

You can also check in the IRS View Your Account Information page and after creating or accessing your account,

The third stimulus is based on your 2021 tax return and the stimulus is phased out depending on your adjusted gross income.

The AGI limits to receive the full amount of the credit is

• $75,000 for individuals
• $112,500 for heads of household
• $150,000 for married, joint filers

For filers with income above those amounts, payments were phased out or reduced. This means filers didn't receive any payment if their AGI was at least:

• $160,000 if married and filing a joint return
• $160,000 if filing as a Qualifying Widow or Widower
• $120,000 if filing as Head of Household
• $80,000 for any other filing status

Click on the link for more information

Third Stimulus

Can someone please provide the specific directions as to how/where we enter the Recovery Rebate Credit for the 2021 Federal Return? I have spent hours looking and am unable to find out where I input the third rebate that I received. If this is under "Personal", what section - Deductions & Credits? And, if under Deductions & Credits, where is it? Thank you!

In TurboTax Online, to claim the Recovery Rebate credit please do the following:

1. Sign in to your account and continue from where you left off
2. Click on Federal in the left-hand column, then on Federal Review on the top of the screen
3. On the next page titled Did you [or your spouse] get a third stimulus payment?, answer Yes or No
4. Follow the interview and answer all questions
5. TurboTax will determine whether you are entitled to any additional stimulus
6. Any stimulus amount remaining due to you will show as a credit on line 30 of your form 1040.

Thanks for providing the information about how to do this online. I apologize for not being more specific. I purchased the software and installed it on my computer. How do I find this in the software for desktops (windows, not Mac). Thanks!

If you have desktop software click the tab that says Review.

Can someone please explain where I should enter the Recovery Rebate Credit for the 2021 Federal Return? I spent hours trying to find out where to put the Third Stimulus Rebate that I did not receive. Also, why my Federal Tax due increase?

According to the IRS, if you did not get the full amount of the third Economic Impact Payment, you may be eligible to claim the 2021 Recovery Rebate Credit and must file a 2021 tax return – even if you do not usually file taxes - to claim it. Your 2021 Recovery Rebate Credit will reduce any tax you owe for 2021 or be included in your tax refund.

https://www.irs.gov/newsroom/2021-recovery-rebate-credit-topic-f-receiving-the-credit-on-a-2021-tax-return

However, when I entered the Recovery Rebate Credit, it increased my Federal Tax due.

TurboTax Tab (s) Personal Review ask for the following information:

• Let's double check the amount you received
•  
• Based on the tax info you entered and your combined adjusted gross income of $150,948, you and spouse are eligible for a third stimulus payment of $2,548.
•  
• Does this match the amount on Letter(s) 6475 for you and Spouse?
•  
• Yes or No - I selected No because Letter 6475 total should be $2,800. Then my Federal Tax due increased.

But the IRS states, "Recovery Rebate Credit will reduce any tax you owe for 2021 or be included in your tax refund".

Please advise.

Before you entered your third stimulus payment, TurboTax was most likely giving you the Recovery Rebate Credit.

Generally, if taxpayers did not get a third stimulus payment, and now they qualify due to a change in circumstance, then they would get a Recovery Rebate Credit. The Recovery Rebate Credit is calculated into your overall tax refund and will either increase a refund or decrease the amount of tax owed. 

Once you entered your third stimulus payment, the credit got eliminated because you received all you were qualified for. This decreased your tax due. Stimulus payments were not considered income and are not taxable. 

To access the stimulus section of the return, please complete the following:

1. Open your return.
2. Search stimulus with the magnifying glass tool at the top of the page.
3. Click on the Jump to link. 
4. Enter the amount of stimulus you received on the page, Let's double-check the amount you received. Enter your total third round payment as it appears on your Letter 6475 from the IRS. 

@badams_taxes

As previously mentioned, I only changed the $2,548, which populated, to $2,800 mentioned in Letter 6475; it did not increase a refund or decrease the amount of tax owed. Still, it did increase the amount of Federal Tax Owed.

My Federal Tax Due went from $2,372 to $4,965 when I changed the $2,548 to $2,800.

If you are still getting an error, it would be helpful to have a TurboTax ".tax2021" file that is experiencing this issue.

You can send us a “diagnostic” file that has your “numbers” but not your personal information. If you would like to do this, here are the instructions: Go to the black panel on the left side of your program and select Tax Tools. 

1. Then select Tools below Tax Tools. 
2. A window will pop up which says Tools Center.  
3. On this screen, select Share my file with Agent. 
4. You will see a message explaining what the diagnostic copy is. Click okay through this screen and then you will get a Token number. 
5. Reply to this thread with your Token number. This will allow us to open a copy of your return without seeing any personal information.  

We will then be able to see exactly what you are seeing and we can determine what exactly is going on in your return and provide you with a resolution.

@badams_taxes

See the below question information from the TurboxTax:

We crunched the numbers and the amount you received looks right.

Base on your combined adjusted income $150,948 and the third stimulus payment you received $2,800, we are confident you got every stimulus dollar you qualified for.

Why am I not getting the Recovery Rebate Credit?

Not getting the credit means you already received the full amount you qualify for. This is common as most taxpayers got the full amount they qualified for when stimulus payments were issued.

Your stimulus payments are like a cash advance on the Recovery Rebate Credit. Typically you'd just get the full credit on your taxes but many taxpayers couldn't afford to wait until tax time for this  money. In response, stimulus payments were sent out before tax season.

Please advise.

Hello, 

I sent two (2) messages and no one responded.

Please advise.

You have received 2messages back.  Did you get the separate 3rd Stimulus payment that came out starting in March 2021 for 2,800?  Or not?   The Recovery Rebate Credit on line 30 is only if you didn't get the full amount or qualify for more.  If you did NOT get any then say NO and put down 0.  Do not enter the 2800 you qualify for.  

So why are you entering 2800 if you did not receive it?  You only enter the amount you did receive to see if you get more.  

@badams_taxes   Oh you did get letter 6475?  So you already did get the 3rd Stimulus Payment.  How much did you get?  Check your bank deposits.  Because if your income is over 150,000 it is phased out and you only qualify for $2,548.  But the IRS is saying you already got it.  You can't get it again on line 30.  

Turbo Tax started out giving you the Recovery Rebate Credit for 2548  (or 2593) on line 30.  So your Refund was artificially too high.    Then at the end you enter what you already got from letter 6475 and it subtracts it.    Line 30 is not for what you already got.  Line 30 is only if you didn't get the full amount or qualify for more.  Sorry Turbo Tax is right.  

 I just received Letter 6475, and no, I did not get the Third Stimulus Payment. I checked my bank deposits, looking at the First and Second Stimulus Payment, not the Third Stimulus Payment.

Please read below what the IRS posted about the Third Payments Differed from Previous Economic Impact Payments.

https://www.irs.gov/coronavirus/third-economic-impact-payment

Eligibility

Payments were phased out – or reduced – above those AGI amounts. This means people did not receive a payment if their AGI was at least:

• $160,000 if married and filing a joint return or if filing as a qualifying widow or widower
• $120,000 if filing as head of household
• $80,000 for any other filing status

Most eligible people didn't need to take additional action to get a third payment.

Generally, someone was eligible for the full amount of the third Economic Impact Payment if they:

• are a U.S. citizen or U.S. resident alien (and their spouse if filing a joint return), and
• are not a dependent of another taxpayer, and
• had adjusted gross income (AGI) that is not more than:
• $150,000 if married and filing a joint return or if filing as a qualifying widow or widower
• $112,500 if filing as head of household or
• $75,000 for any other filing status

Payments were phased out – or reduced – above those AGI amounts. This means people did not receive a payment if their AGI was at least:

• $160,000 if married and filing a joint return or if filing as a qualifying widow or widower
• $120,000 if filing as head of household
• $80,000 for any other filing status

Amount of Third Economic Impact Payment

The third Economic Impact Payment amount was:

• $1,400 for an eligible individual with a valid Social Security number ($2,800 for married couples filing a joint return if both spouses have a valid Social Security number or if one spouse has a valid Social Security number and one spouse was an active member of the U.S. Armed Forces at any time during the taxable year)
• $1,400 for each qualifying dependent with a valid Social Security number or Adoption Taxpayer Identification Number issued by the IRS

Getting Your Payment

Most eligible individuals received their third Economic Impact Payment automatically and didn't need to take additional action. The IRS used available information to determine your eligibility and issue the third payment to people who:

• filed a 2020 tax return
• filed a 2019 tax return if the 2020 tax return had not been submitted or processed yet
• did not file a 2020 or 2019 tax return but registered for the first Economic Impact Payment with the Non-Filers tool in 2020
• registered through the 2021 Child Tax Credit Non-filer Sign-up Tool
• are federal benefit recipients who do not usually file a tax return.

Third Payments Differed from Previous Economic Impact Payments

The third payments differed from the earlier payments in several respects:

• Income phaseout amounts changed. Payments were reduced for individuals with adjusted gross income of more than $75,000 (or $150,000 if married filing jointly). The reduced payments ended at $80,000 for individuals and $160,000 for married filing jointly. People above these levels did not receive any payment.
• Payment amounts are different. Most families received $1,400 per person, including all dependents claimed on their tax return. Typically, this means a single person with no dependents received $1,400, while married filers with two dependents received $5,600. 
• Qualifying dependents expanded. Unlike the first two payments, the third payment was not restricted to children under 17. Eligible individuals received a payment based on all of their qualifying dependents claimed on their return, including older relatives like college students, adults with disabilities, parents and grandparents.

If you got letter 6475 then the IRS is saying you  did get the 3rd Stimulus check EIP3.   You can't find a bank deposit for that amount?  If you are married they send letter 6475 to each spouse for half.    You don't need to post all the IRS info.  We know it.  They sent the 3rd Stimulus based on your 2020 return to get the checks out fast.  But it is really based on 2021, so the Recovery Rebate Credit could be more or less.  

If you got letter 6475 but did not get the 3rd payment that came out starting in March 2021 last year then you need to put a trace for the missing third Stimulus payment
https://www.irs.gov/newsroom/questions-and-answers-about-the-third-economic-impact-payment-topic-j-payment-issued-but-lost-stolen-destroyed-or-not-received

Why do I owe the IRS 1400.00?

@Ldoane1968 Not sure what you mean.   If you already received the $1400 stimulus check last year then you cannot get it twice.   Lots of people have been making mistakes on their 2021 tax returns by saying they did not receive the $1400 and then the IRS cross checks and sees that they sent it to you and they remove from your refund.   Is that what happened?   Was your refund reduced and do you now owe?

Or.....were you seeing it when you started preparing your return and now it disappeared?

What you may not realize is that as soon as you began to prepare your tax return, the software was giving you the $1400 and it was shown on that "refund monitor" -----but when you entered that you received it already, the software had to reconcile the payment you received,   You cannot get it twice---so it looked to you like you "lost" $1400.   You did not lose it---you just cannot receive it twice.

If you are not sure if you already received the$1400, check on your IRS account.

https://www.irs.gov/payments/your-online-account

Can you clarify your question?

Have you filed your return already?

Do you owe $1400 on your tax return, or did you get an IRS letter?

If you did get an IRS letter, is it Letter 6475, Your Third Economic Impact Payment?

If yes, please reread your letter. This letter just lets you know that you received $1400 in 2021 for the EIP. This letter is meant to help you file an accurate return, it doesn't mean you owe anything.

Thank you!

When I traced my federal return, I got this message back.  We change ed the amount claimed as   Recovery Rebate Credit on your tax return. The error was one or more of the following:  The amount was computer incorrectly.

@RTCRAIG

LOTS of people have made mistakes this year with the recovery rebate credit by "forgetting" that they received the $1400 per person stimulus checks last year.  They answered no to the questions for the  recovery recovery rebate credit and put the $1400 per person on line 30 of their returns.  But you cannot get it twice, so the IRS removes it when it is there by mistake.

Try checking your online account with the IRS

https://www.irs.gov/payments/your-online-account

Does the IRS show that you received a $1400 stimulus or EIP check in 2021?   Did you receive it?   When you were asked on your tax return did you say no?   Was there $1400 on line 30 of your tax return?

If the IRS says you got $1400 last year but you did not receive it you can have it traced.

LOST THIRD STIMULUS CHECK

https://www.irs.gov/newsroom/questions-and-answers-about-the-third-economic-impact-payment-topic-j-payment-issued-but-lost-stolen-destroyed-or-not-received

I received an INCORRECT Letter 6475 stating I had received an Economic Impact Payment in 2021. I verified everything I received through direct deposit from the IRS, and I simply DID NOT RECEIVE IT. I was looking for answers in the community forum, but was coming up empty until I found "How do I claim the Recovery Rebate Credit in TurboTax?" and read past the part about verifying whether or not you received stated funds...

The answer is to

"enter all of your federal return information as you would normally."

Then, during the Federal Review, there is a screen if you qualified with the information you have entered: "DID YOU GET A THIRD STIMULUS?"

I answered "NO" and all of the subsequent questions, factually, instead of what the IRS Letter 6475 stated. TurboTax handled the information appropriately, and we not only got a Recovery Rebat Credit for me, but we got it for my husband as well. (I would not have even searched for this or known how to handle it if I hadn't have received the letter from the IRS that I knew was incorrect.)

Hopefully you were able to find and make this correction before submitting your tax return. 

If you enter what the IRS said you received in their letter, even though you didn't actually receive it, TurboTax will not appropriately credit what you qualify for at the time you are preparing your tax return.

Hope this helps.