Recovery Rebate Credit 2021

[Rechelle2020]

I didn't want to create/sign in to the IRS account right now, because they are actually making big changes to their ID verification process. Right now, you need to use a 3rd party to get set up with your IRS account, and they have full disclosure about how this is a temporary fix to a problem of previously requiring selfies for identification.

Sooo, I missed the fact that the IRS had truly sent the $ that was in the notification letter I received, and it was very confusing, because I did not have a letter for my husband. (I thought it was because he makes a lot more than I do and so he must not have qualified somehow. In the process, I also didn't realize that the letter I got from the White House in April about "American Rescue Plan" money that was direct deposited to our account was actually a notice about the advance of the Recovery Rebate Credit we both qualified for based on our 2020 tax return. Ah ha moment: The American Rescue Plan from the White House = Economic Impact Payment from the IRS. So if you got a letter from the White House last spring about a direct deposit, check the amount. It turned out it was the same $ as my Total Economic Impact Payment as stated on the IRS Letter 6475 x 2.

I am going to call the IRS on Monday to find out if I can just start making payments to cover for the difference between what I e-filed as a refund and what we actually owe because we already received the 2021 Recovery Rebate Credit. Then they will have a note in my account before they process my return and hopefully mitigate more issues with this.

I have found the IRS agents to be very helpful through the years, and don't have a problem calling them to walk me through an issue (my mistake, TurboTax software glitch, or theirs - they have helped me a few times).

[badams_taxes]

VolvoGirl,

Thank you! Will someone change line 30 on Form 1020 back to the $2,800?

Thanks again!

[badams_taxes]

Rechelle2020

The letter let the customer know how much they were eligible to receive. And if you did not get as you were qualified for, then select $0. but make sure TurboTax included the correct amount in line 30 on Form 1040.

Will someone be able to change line 30 of Form 1040 back to $2,800?

I appreciate any help you can provide.

[VolvoGirl]

Let's start over.  You said you checked your bank accounts and didn't see the 3rd Stimulus payment that came out starting last March 2021?   It might not have been for the max 2,800 if your 2020 income was too high.  So look for any deposits from the IRS or Treasury.

If the IRS sent you letter 6475 (if you are married you should each get a letter 6475 for half) then the IRS records show they sent it to you.  How much does the letter say?

If the IRS thinks they sent it to you then you can not claim it on line 30 again.  Or the IRS will just take it off your return and send you a bill.

If the IRS thinks they sent it to you but you didn't get it last year request a trace for a missing third Stimulus payment

https://www.irs.gov/newsroom/questions-and-answers-about-the-third-economic-impact-payment-topic-j-p...

Nobody can change your return but you.  Have you filed yet?  But Line 30 should be 0.  You can't claim 2800 on it because the IRS already sent you the 3rd Stimulus payment or thinks they did.  

[VolvoGirl]

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@badams_taxes wrote:

Rechelle2020

The letter let the customer know how much they were eligible to receive.

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@badams_taxes wrote:

Rechelle2020

The letter let the customer know how much they were eligible to receive......

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NO NO  IRS letter 6475 is to tell you how much the IRS sent you last year.  Not  how much you are eligible for.  The IRS doesn't know how much you qualify to get.  It is based on this 2021 return.  So you can't claim that amount again on line 30.

[badams_taxes]

VolvoGirl

Correct, my bank account did not show a Third Stimulus Payment. My married filing jointly income for Tax Year 2020 was below the required amount.

My deposits were for the Second Stimulus Payment.

[badams_taxes]

Rechelle2020

Thanks for clarifying that the IRS letter 6475 is to let me know how much the IRS sent last year.

Thank you.

[baconey]

Your instructions for finding this in the federal review is not correct, it does not bring up a section for Recovery rebate.

[xmasbaby0]

@baconey If you are not getting any questions in Federal Review for the recovery rebate credit ---either you said you can be claimed as someone else's dependent, or your income was too high in 2021 and you are not eligible to receive the credit.

[jim5558]

When asked if I had received 3rd rebate I said no. It calculated I was to receive 1400, IRS says that is not correct

[ErnieS0]

The IRS sent our the third rebate so they have records of what they sent out. They will not give you a rebate on your tax return if their records show you got one @jim5558.

Did you receive a letter from the IRS showing how much rebate you received?

It's possible your rebate for lost. You can request a payment trace.

To start a payment trace:

• Call us at 800-919-9835
• Mail or fax a completed Form 3911, Taxpayer Statement Regarding Refund PDF.

Reminder: DO NOT request a trace prior to the timeframes above. IRS assistors cannot start a trace prior to those timeframes.

To complete the Form 3911:

• Write "EIP3" on the top of the form to identify the payment you want to trace.
• Complete the form answering all refund questions as they relate to your Economic Impact Payment.
• When completing item 7 under Section 1:
  • Check the box for "Individual" as the Type of return
  • Enter "2021" as the Tax Period
  • Do not write anything for the Date Filed
• Sign the form. If you file married filing jointly, both spouses must sign the form.

You will generally receive a response 6 weeks after we receive your request for a payment trace, but there may be delays due to limited staffing.

[badams_taxes]

Thank you Jim5888!

[3DBuckeye]

Hello, Did you ever figure this out?  I have the same issue  with the Desktop version of TurboTab.  We received the 3rd Recovery payment based on 2020 income and are no longer eligible.  I can't find anywhere to enter the amount that we received so that the funds can be "returned" by reducing the amount of our total return.

Thanks!

[xmasbaby0]

@3DBuckeye You do not have to pay it back.   The  IRS hurried to get those checks out last year so they used prior year tax information.   But if you received it based on 2020 income you got lucky and get to keep it.   If you had NOT received it last year you would not be able to get it based on a too-high 2021 income.   You do not have to enter anything about it on your 2021 return.   Just leave line 30 blank and you are fine.

[VolvoGirl]

See IRS Topic H 3rd question

Questions and Answers about the Third-round Economic Impact Payment — Topic H: Reconciling on Your 2...