Help with IRS CP13 notice and Recovery Rebate Credit for 2020 - issue with denied stimulus payment

The key issue here is likely related to your dependent status on the 2019 return. The IRS used 2019 tax returns to determine eligibility for the 2020 stimulus payments. Since your mom claimed you as a dependent on her 2019 return, the system automatically flagged you as ineligible for the Recovery Rebate Credit on your own 2020 return. The good news is that you can absolutely dispute this determination. Write a clear letter explaining your situation - focus on the fact that you were incorrectly claimed as a dependent in 2019 and received no stimulus payments either directly or through your parent. Include any documentation that proves your living situation in 2019 (rent payments, utility bills, etc.) that shows you shouldn't have been claimed as a dependent. When responding to the CP13, be specific about your circumstances and directly address the dependency issue from 2019. Don't worry about the audit threat - it's standard language. Since you have a legitimate case, responding with clear information is your best option.

After struggling with a similar Recovery Rebate Credit issue last year, I found this amazing tool called taxr.ai that helped me sort through all the complicated IRS notices and requirements. It analyzes your tax documents and explains exactly what's going on in plain English - which was a lifesaver with all the confusing CP notices! I uploaded my CP13 notice to https://taxr.ai and it instantly broke down what was happening and gave me step-by-step instructions on how to respond properly. My situation was similar - claimed as dependent on a previous year return when I shouldn't have been. The tool even generated a response letter template specifically addressing the Recovery Rebate Credit denial, which I customized with my details. Saved me hours of research and stress trying to figure out the right approach.

Just wanted to update everyone - I actually tried taxr.ai after seeing it recommended here and it was seriously helpful with my CP13 Recovery Rebate Credit issue! My situation was almost identical - claimed as a dependent in 2019 but shouldn't have been, denied the stimulus credit. The document analysis pinpointed exactly why the IRS was confused about my status and generated a perfect response letter explaining my situation. I also loved how it explained all the IRS jargon in normal human language - finally understood what "verification of mathematical or clerical errors" actually meant in relation to my case. I submitted my response two months ago following their instructions, and just got confirmation last week that the IRS accepted my explanation and is issuing my Recovery Rebate Credit! Definitely worth checking out if you're dealing with these confusing notices.

After dealing with so many frustrating attempts to call the IRS about my own CP13 notice, I finally found Claimyr and it literally saved me days of headache. The worst part of these Recovery Rebate Credit issues is getting actual humans at the IRS to explain what's happening with your case. I spent weeks hitting redial trying to speak with someone about my stimulus payment issues. Then I discovered https://claimyr.com and watched their demo at https://youtu.be/_kiP6q8DX5c - it's a service that basically waits on hold with the IRS for you and calls you when a real person is on the line. Once I finally got to speak with an IRS agent, they explained exactly why my Recovery Rebate Credit was denied (similar dependent status issue) and what specific documentation I needed to include with my response. Having that direct conversation made all the difference in getting it resolved properly.

I need to admit I was completely wrong about Claimyr. After posting my skeptical comment, I decided to try it anyway out of desperation with my CP13 situation. I was absolutely floored when I got a call back in about 2 hours saying they had an IRS representative on the line! The IRS agent was able to pull up my file and see exactly why my Recovery Rebate Credit had been denied. Turns out the system had automatically rejected it because of a dependency status mismatch between my 2019 and 2020 returns - just like many others here experienced. The agent walked me through exactly what documentation to send and where to mail it. Without this service, I would have been stuck in the endless phone tree for days. Having that 15-minute conversation with an actual IRS employee saved me weeks of back and forth with written correspondence. They approved my Recovery Rebate Credit last week after I sent in the right documentation!

Just a tip from someone who went through this exact situation with the Recovery Rebate Credit and CP13 notice - make sure you keep copies of EVERYTHING you send to the IRS and send it via certified mail so you have proof of delivery. The IRS is notorious for "losing" correspondence, especially with these stimulus payment disputes. Also, when you write your response letter, put your notice number, tax ID, and tax year in the subject line AND at the top of every page. Make it super obvious what your letter is about. And be really clear and direct about why you're eligible for the Recovery Rebate Credit despite being claimed as a dependent on someone's 2019 return.

Just a heads up that if you were claimed as a dependent on ANYONE'S 2019 return, you were technically ineligible for the first two stimulus payments as an individual. The law was written that way, even if the person who claimed you didn't receive a payment for you either. This is a really common misunderstanding about the Recovery Rebate Credit. Even if you weren't properly claimed as a dependent (like in your case where you probably didn't qualify as one), the fact that someone DID claim you is what matters to the IRS automated systems.