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August 23, 2021
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Recovery rebate credit issue

  • August 23, 2021
  • 1 reply
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Long story here, hope someone can help. I'm eligible for all 3 EIP payments. The 2nd one and the 3rd one arrived by paper check no issues.  However, the first one I had to have the IRS perform 3 seperate traces as the check had not arrived. After 6 months and concluding the traces (green light) the IRS informed me to claim the $1,200 as a recovery rebate credit which I did using Turbo Tax. After a 3 month wait it's now showing on Where's my refund that the IRS reduced my credit from $1200 to ZERO,  noting that there may be a calculation error on the return which was done using Turbo tax. In addition IRS will send the notification letter out on August 30 which could take at least 60 days to reach me abroad because the mail is being held up by Covid. I understand I only have 60 days to reply to their notice that may not arrive for 90 days. Im in a tough predictament. I have nothing to go on accept a calculation error when claiming the credit. All of the requirements I fall under. Single filer, no kids, under 75k. Perhaps a line 30 error? And no one claimed me as a dependent. I just dont get it. Did turbo tax make an error when sending it off?  Any suggestions and help would be greatly appreciated. Thank You

Best answer by Critter-3

You are in a pickle ... I would respond to the notice when it comes with the declaration of the IRS to just claim it on the return.   AND  I would also put in another trace. 

 

If you have not yet signed up for an account on the IRS site do so now ... notices can be found there once issued.  If you cannot do it online then get the code mailed to you so you can open the account for future use. 

 

https://www.irs.gov/payments/view-your-tax-account

1 reply

Critter-3
Critter-3Answer
August 23, 2021

You are in a pickle ... I would respond to the notice when it comes with the declaration of the IRS to just claim it on the return.   AND  I would also put in another trace. 

 

If you have not yet signed up for an account on the IRS site do so now ... notices can be found there once issued.  If you cannot do it online then get the code mailed to you so you can open the account for future use. 

 

https://www.irs.gov/payments/view-your-tax-account

August 24, 2021

Thanks for your reply: Would they even do another trace and reissue another paper check after reducing my RRC from $1200 to 0? I thought once they rejected my RRC that was final. 

 

 

Critter-3
August 24, 2021

Don't know ... this is uncharted territory for all parties.

 

Maybe talk to a taxpayer advocate :  

 

https://www.irs.gov/advocate/local-taxpayer-advocate