As the IRS indicated, they are reconciling refunds with stimulus payments and the Recovery Rebate Credit claimed on your return. If you do not know the amounts of your stimulus payments, refer to notice 1444 and 1444-b or visit the IRS website.
Review your Recovery Rebate Credit Worksheet in your PDF (last page of federal return) if you have any questions about the amount of Recovery Rebate Credit generated on your return.
The Recovery Rebate Credit worksheet is populated based on your answers, the filing status, dependents on the return and social security numbers.
Questions 1 through 4 - Who qualifies for stimulus?
Lines 5- 7 Stimulus #1 Qualifying Amount
Line 5 is used to determine if you qualify for $1200 or $2400 based on the filing status. This will be blank if you indicated you received all of your stimulus payments.
Line 6 is used to determine the stimulus amount (EIP 1) you should have received for your qualifying dependents.
Lines 8-10 Stimulus #2 Qualifying Amount
Line 8 is used to figure your stimulus (EIP 2) amount you should have received based on household size. This will be blank if you indicated you received all of your stimulus payments.
Line 9 is use to figure the stimulus amount (EIP 2) you should have received for your qualifying dependents.
Lines 11 -15 Income Limitations
Line 11 is used to pull your Federal Adjusted Gross Income form the 1040 form.
Line12 is used to determine the maximum income you can have to qualify for the stimulus based on your filing status.
Line 13 is a comparison of lines 11 and 12 to determine if the taxpayer qualifies
Line14 If your income is above the threshold on line 12, the stimulus payment is reduced by 5% of the excess over the threshold.
Line 15 The amount the taxpayer qualifies for (Stimulus #1) minus the amount of the limitation (if any)
Lines 16- 17 Stimulus # 1
Line 16 How much did the taxpayer receive for all the persons on the return in the first round of stimulus? This was manually entered in the program as "Total amount received during the first round of payments *"
Line 17 Subtract amount received for first stimulus payment (line 16) from amount qualified for (line 15)
Line 18 Difference in what the taxpayer manually entered as received (Stimulus 2)and the amount the taxpayer qualified for
Lines 18-20 Stimulus #2
Line 18 The amount the taxpayer qualifies for (Stimulus #2) minus the amount of the limitation (if any)
Line 19 How much did the taxpayer receive for all the persons on the return in the second round of stimulus? This was manually entered in the program as "Total amount received during the second round of payments *"
Line 20 Difference in what the taxpayer manually entered as received (Stimulus 2 )and the amount the taxpayer qualified for
Line 21- Recovery Rebate Credit amount carried to line 30
Line 21 Add lines 17 and 20. Carry the amount to line 30 of the 1040 form.
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.