Recovery

Hello,

In 2021, the IRS made payments for the third stimulus or Economic Impact Payment # 3.

Most taxpayers that were eligible received these amounts during the year.

For some taxpayers, they did not receive the amounts during the year, but had to claim the stimulus on their tax returns as a Recovery Rebate Credit.

If you indicated during the preparation of your tax return that you did not receive the stimulus, or that you received a lower amount than you were eligible for, then TurboTax would have calculated a Recovery Rebate credit, and reported the amount on line 30 of your tax return or Form 1040.

When the IRS processes your tax return, they verify the amount you reported as having received by comparing to their records. If you understated the amount that you received, the IRS then adjusts your tax return to reduce the amount of the Recovery Rebate credit and this may result in a balance due.

You may find the resource below informative:

https://www.irs.gov/newsroom/what-people-should-do-if-their-third-round-economic-impact-payments-are-missing-or-incorrect