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March 12, 2021
Question

IRS reduced my refund: We changed the amount claimed as Recovery Rebate Credit on your tax return. The amount was computed incorrectly. Why wasn't this caught earlier?

  • March 12, 2021
  • 1 reply
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Full details of their message is below. It seems like TurboTax would have been aware of any of these issues prior to my filing, so I'm surprised to see the IRS made the adjustment. Any thoughts on why?

We changed the amount claimed as Recovery Rebate Credit on your tax return. The error was in one or more of the following:
The Social Security number of one or more individuals claimed as a qualifying dependent was missing or incomplete.
The last name of one or more individuals claimed as a qualifying dependent does not match our records.
One or more individuals claimed as a qualifying dependent exceeds the age limit.
Your adjusted gross income exceeds $75,000 ($150,000 if married filing jointly, $112,500 if head of household).
The amount was computed incorrectly.

1 reply

Employee
March 12, 2021

TurboTax does not know how much stimulus money you received.   The user had to enter those amounts in the recovery credit rebate section.  If you entered it incorrectly TT had no way to know that.  Some people either got confused by the questions and answered incorrectly, or said they did not receive stimulus money---and received it after they filed a 2020 return.  The IRS cross checked what you received and adjusted your refund accordingly.   

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**