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 payment, refer to notice 1444-C 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 5 - Who qualifies for stimulus?
Lines 6- 8 Stimulus #1 Qualifying Amount
Line 6 is used to determine if you qualify for $1400 or $2800 based on the filing status. This will be blank if you indicated you received all of your stimulus payments.
Line 7 is used to determine the stimulus amount (EIP 3) you should have received for your qualifying dependents.
Lines 9 -12 Income Limitations
Line 9 is used to pull your Federal Adjusted Gross Income form the 1040 form.
Line 10 is used to determine the maximum income you can have to qualify for the stimulus based on your filing status.
Line 11 If your income is above the threshold on line 10, the stimulus payment is reduced by 5% of the excess over the threshold.
Line 12 The amount the taxpayer qualifies for (Stimulus #3) minus the amount of the limitation (if any)
Line 13 How much did the taxpayer receive for all the persons on the return in the third round of stimulus? This was manually entered in the program as "Total amount received during the third round of payments *"
Line 14- Recovery Rebate Credit amount carried to line 30
Line 14 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.