IRS letters explain why some 2020 Recovery Rebate Credits are different than exp

nearmetips Posted: 2021-4-6 08:10:26
IR-2021-76, April 5, 2021

WASHINGTON − As people across the country file their 2020 tax returns, some are claiming the 2020 Recovery Rebate Credit (RRC). The IRS is mailing letters to some taxpayers who claimed the 2020 credit and may be getting a different amount than they expected.

It's important to remember that the first and second Economic Impact Payments (EIP) were advance payments of the 2020 credit. Most eligible people already received the first and second payments and shouldn't or don't need to include this information on their 2020 tax return.

People who didn't receive a first or second EIP or received less than the full amounts may be eligible for the 2020 RRC. They must file a 2020 tax return to claim the credit, even if they don't usually file a tax return.

When the IRS processes a 2020 tax return claiming the credit, the IRS determines the eligibility and amount of the taxpayer's credit based on the 2020 tax return information and the amounts of any EIP previously issued. If a taxpayer is eligible, it will be reduced by the amount of any EIPs already issued to them.

If there's a mistake with the credit amount on Line 30 of the 1040 or 1040-SR, the IRS will calculate the correct amount, make the correction and continue processing the return. If a correction is needed, there may be a slight delay in processing the return and the IRS will send the taxpayer a letter or notice explaining any change.

Taxpayers who receive a notice saying the IRS changed the amount of their 2020 credit should read the notice. Then they should review their 2020 tax return, the requirements and the worksheet in the Form 1040 and Form 1040-SR instructions.

Here are some common reasons the IRS corrected the credit:
  • The individual was claimed as a dependent on another person's 2020 tax return.
  • The individual did not provide a Social Security number valid for employment.
  • The qualifying child was age 17 or older on January 1, 2020.
  • Math errors relating to calculating adjusted gross income and any EIPs already received.

IRS.gov has a special section - Correcting Recovery Rebate Credit issues after the 2020 tax return is filed – that provides additional information to explain what errors may have occurred. Taxpayers who disagree with the IRS calculation should review their letter as well as the questions and answers for what information they should have available when contacting the IRS.

The Internal Revenue Service urges people who have not yet filed their 2020 tax return to properly determine their eligibility for the 2020 before they file their 2020 tax returns. To calculate any credit due, start with the amount of any EIPs received. Use the RRC Worksheet or tax preparation software. Taxpayers who didn't save or didn't receive an IRS letter or notice can securely access their individual tax information with an IRS online account.

Anyone with income of $72,000 or less can file their Federal tax return electronically for free through the IRS Free File program. The fastest way to get a tax refund which will include your 2020 RRC is to file electronically and have it direct deposited into their financial account. Bank accounts, many prepaid debit cards and several mobile apps can be used for direct deposit when a routing and account number are provided. If using a prepaid debit card, check with the financial institution to ensure the card can be used and to obtain the routing number and account number, which may be different from the card number.

For more information, see IRS information letters about Economic Impact Payments and the Recovery Rebate Credit or visit IRS.gov/rrc and the frequently asked questions by topic.
Source link








回复

使用道具 举报

More
IRSIRS announces use of Projected Contract Award Date web app that predicts when co
IR-2021-102, May 5, 2021 WASHINGTON —The Internal Revenue Service's Office of the Chief Procuremen
IRSAs hurricane season nears, IRS reminds people to prepare for natural disasters
IR-2021-101, May 4, 2021 WASHINGTON — The Internal Revenue Service reminds everyone that May inclu
IRSLow Income Taxpayer Clinic 2022 grant application period now open
IR-2021-100, May 3, 2021 WASHINGTON — The Internal Revenue Service today announced that the applic
IRSIRS has options for gig economy workers and those with unemployment benefits
IR-2021-97, April 29, 2021 WASHINGTON — The Internal Revenue Service reminds workers in the gig ec
IRSDraft Schedules K-2 and K-3 released to enhance reporting of international tax m
IR-2021-98, April 30, 2021 WASHINGTON — The Treasury and the IRS released today updated early draf
IRSIRS now accepting TCE and VITA grant applications
IR-2021-99, April 30, 2021 WASHINGTON — Eligible organizations can now submit applications for the
IRSIRS: Some people get more time to file without asking; anyone else can request a
IR-2021-96, April 29, 2021 WASHINGTON — Anyone can request an automatic tax-filing extension, but
IRSNearly 2 million more Economic Impact Payments disbursed under the American Resc
IR-2021-95, April 28, 2021 WASHINGTON — Today, the Internal Revenue Service, the U.S. Department o
IRSIRS Office of Chief Counsel's first National Virtual Settlement Month successful
IR-2021-93, April 26, 2021 WASHINGTON — Building on the success of Settlement Days and Virtual Set
IRSElectronic options on IRS.gov are available 24/7; save time online for filing in
IR-2021-94, April 27, 2021 WASHINGTON — The Internal Revenue Service today urged taxpayers and tax
IRSAmerican Rescue Plan tax credits available to small employers to provide paid le
IR-2021-90, April 21, 2021 WASHINGTON — The Internal Revenue Service and the Treasury Department
IRSTreasury Department and IRS provide safe harbor for small businesses to claim de
IR-2021-91, April 22, 2021 WASHINGTON — The Treasury Department and the Internal Revenue Service t
IRSTwo million more Economic Impact Payments disbursed under the American Rescue Pl
IR-2021-92, April 22, 2021 WASHINGTON — Today, the Internal Revenue Service, the U.S. Department o
IRS20-year Exam veteran selected as new Office of Promoter Investigations acting di
IR-2021-88, April 19, 2021 WASHINGTON — As part of the continued focus on compliance issues, the I
IRSSteer clear of typical tax return errors; May 17 deadline nears
IR-2021-89, April 20, 2021 WASHINGTON — The Internal Revenue Service today reminded taxpayers to c

Nearmetips, Local city life portal site, which provides essential and practical information on life services such as regional transportation, tourism, real estate, food, shopping, education, medical care, job recruitment and honest businesses.

Follow Us