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April 2, 2021
Question

The 600.00 I got in 2020 was taken out of my tax refund I thought this stimulus was suppose to be tax free what happened?

  • April 2, 2021
  • 1 reply
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the 600.00 I got in 2020 was taken out of my tax refund I thought this stimulus was suppose to be tax free what happened

1 reply

Employee
April 2, 2021

The IRS will be sending you a letter, so wait for it.  They do not notify TT, but perhaps they adjusted your Recovery Rebate Credit because (1) you did not qualify for it; or (2) your 2020 income differed from 2019; or (3) their records indicate you were already sent it as a stimulus payment. (Some of those stimuli were sent as debit cards. Could you have received one, but threw it out as junk mail?) 

 

In addition, the 2020 Recovery Rebate Credit can be reduced to pay debts owed to other Federal government agencies (separate from federal income tax debt), as well as to state agencies.  Keep in mind that the credit is part of your tax refund, and your tax refund is subject to offset.

Recovery Rebate Credit Frequently Asked Questions | Internal Revenue Service (irs.gov)