The IRS Where's my Refund tool may show that your federal tax refund was offset for a past due obligation. However, the listed balance of your refund may not take into account all offsets your tax return has accrued. If this is the case, the refund you received may be lower than the balance of your refund shown through the IRS "Where's my Refund" tool. Please note that if you used the File and Go option to pay for your preparation fees, the fees will be taken out of the amount released by the IRS following any offsets.
If your refund is reduced, you will receive a letter from the Treasury Offset Department of the Bureau of Fiscal Services detailing the reason for your offset. You may additionally contact the Bureau of Fiscal Services by calling 800-304-3107 if you have questions regarding your offset.
Recovery Rebate Credit worksheet explained
As the IRS indicated, they are reconciling refunds with stimulus payments and the Recovery Rebate Credit claimed on your return.
Review your Recovery Rebate Credit Worksheet in your PDF (last page of federal return). The Recovery Rebate Credit worksheet is populated based on your answers, the filing status, dependents on the return and social security numbers.
- Can you be claimed as a dependent on another persons return? If yes, you do not qualify for the credit.
- Do you have a valid SSN? (if filing joint, your spouse also)The instructions indicate to skip lines 3 and 4 and go to line 5 if you answer Yes.
- Married filing joint filers- Was at least one of you a member of the military during 2020 and at least on have a valid SSN?
- Do one of you have a valid SSN? Married filing joint taxpayers
- Based on your filing status- Single is $1200 and Married filing joint is $2400
- Based on your dependents $500 for each qualifying dependent. Lines 5 and 6 calculate the amounts of the stimulus payments you qualified for.
- Total amount you qualified for stimulus #1 payment.
- Figures the total amount of stimulus # 2 you qualify for based on number taxpayers on return X $600.
- Figures the total amount of stimulus # 2 you qualify for based on number dependents on return X $600.
- Add lines 8 and 9 for total qualifying stimulus payment #2
- 1040 Line 11 or Adjusted Gross Income (AGI) form the federal return
- The maximum income amounts per filing status
- Is your income more than the maximum amount on line 12. No- skip to #15, Yes subtract line 12 from line 11
- Multiply line 13 by 5%
- Subtract line 14 from line 7
- Your first stimulus payment received- This is your manual entry in the program for the first payment.
- Subtract line 16 from line 15
- Subtract line 14 from line 10- used to determine the limitation on how much you qualify for
- Your second stimulus payment received. This is your manual entry in the program for the first payment.
- Subtract line 19 from line 18.
- Recovery Rebate Credit pulls to line 30
What if the IRS adjusts my return for the RRC and it is incorrect?
If you did not receive the stimulus payment as the IRS has suggested, you will disagree with the notice (when you get it) so the IRS can track the stimulus payment to determine where it was sent. The notice indicates you should call them at 800-829-0922 to review the account with a representative. Have a copy of your tax return available when you call.