#TURBOTAX STIMULUS CHECK REBATE HOW TO#

And the IRS regularly rejects returns for invalid Social Security numbers and frequently corrects math errors. Luscombe said some of these errors associated with the Recovery Rebate Credit are similar to ones that the IRS has had to deal with for years involving other tax breaks.įor example, he said, the IRS has long had to look for persons claimed as a dependent on more than one tax return. You overlooked a math error relating to calculating adjusted gross income and any Economic Impact Payments already received.You tried to claim stimulus money - which you wouldn't be qualified to get - for a child who was age 17 or older on Jan.You did not provide a Social Security number that's valid for employment.If so, you don't qualify for the first or second stimulus payments. You were claimed as a dependent on another person's 2020 tax return.Here's a list of what some people are doing wrong: Many times, you'll see a smaller than expected tax refund if you don't understand how the Recovery Rebate Credit works. The IRS isn't going to reject your return but if you're mindful of potential errors, you could avoid some delays and disappointments. Some issues people have claiming the Recovery Rebate Credit fall into similar patterns. Once the correct amount is calculated, the IRS will make the correction and continue processing the return. The IRS will calculate the correct amount, if mistakes relating to the first and second stimulus payments are found on Line 30 of the 1040 or 1040-SR. '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,' the IRS stated. Through March 26, the IRS has received 85 million individual income tax returns and processed 75.97 million. That's 10.4% of almost 24 million individual e-filed tax returns received that claimed this credit, according to Luis Garcia, a spokesperson for the IRS in Detroit.

Thus far, the IRS has issued 2.5 million letters relating to issues with the Recovery Rebate Credit. The IRS has already begun mailing letters to some taxpayers who claimed the 2020 Recovery Rebate Credit and may be getting a different amount than they expected. Luscombe said the extra errors are probably creating some processing problems. 'So,' Luscombe said, 'the IRS may have a greater volume of erroneous tax returns than normal, and refunds are generally slowed when the IRS detects such errors.'

'Anytime there is something new on the tax return it usually has an elevated error rate,' said Mark Luscombe, principal analyst for Wolters Kluwer Tax & Accounting.

The Internal Revenue Service is correcting plenty of mistakes that are being made after people plug in the wrong number for the Recovery Rebate Credit on their federal income tax returns.

#TURBOTAX STIMULUS CHECK REBATE HOW TO#

A lot of confusion relating to stimulus checks - and how to claim a tax credit for any money still owed - is triggering trouble, extra letters and delays as people file their 2020 tax returns.

Turbotax stimulus check rebate