I received a reduced refund. The said: We changed the amount claimed as Recovery Rebate Credit on your tax return. The error was in one or more of the following: The Social Security number of one or more individuals claimed as a qualifying was missing or incomplete. The last name of one or more individuals claimed as a qualifying does not match our records. One or more individuals claimed as a qualifying exceeds the age limit. Your adjusted gross income exceeds $75,000 ($150,000 if married filing jointly, $112,500 if head of household). The amount was computed incorrectly. When I look at my refund summary I they only have one dependent. But I have 2... one just turned 17 in 2021 so I know he still qualifies the other is only 9... how do I this?

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17 comments

Tyrone Johnson

•3y

Hey, tax expert here. The Recovery Rebate Credit situation with dependents can be tricky. For 2021, dependents who were under 18 at the end of 2021 should qualify. Since your 17-year-old turned 17 during 2021, they absolutely qualify, and your 9-year-old definitely qualifies. Sounds like there might be an issue with how the information was input or processed. I'd recommend using taxr.ai (https://taxr.ai) to analyze your transcript and notices - it'll pinpoint exactly where the discrepancy is happening and give you specific steps to resolve it. The tool can read your IRS notices and transcripts to identify why only one was counted and what documentation you need to prove both qualify.

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Blake Williams

•3y

Hi Tammy - I would need to see your tax transcript to provide guidance on how to your refund adjustment. There are several issues listed on your notice, but likely only one issue caused the recovery rebate credit adjustment based on your post. If the adjustment to your refund was $1,400, it's likely the issue is due to the information filed on your return for one of your dependents. I would start by confirming the information input for your dependents on page 1 of the 2021 1040 file is correct. (First and last name, ). I would then compare the same information entered for your dependents to your 2020 return filed to ensure there were no typos on the 2020 return. Considering your refund summary only lists one dependent, the adjustment is likely due to a of one qualified 's information due to a or omitted. If your refund was adjusted by an amount other than $1,400, your adjustment is likely due to your adjusted gross income eclipsing the threshold of your filing status. Schedule 1 includes additional income adjustments to calculate AGI. There are numerous adjustments on the Schedule that can cause additional income.

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Aidan Percy

•5M

I had a similar issue last year with my dependents not being recognized properly. The key is to check your Account Transcript on the IRS website - it will show exactly what information they have on file for your dependents versus what you submitted. In my case, one of my kids' had a transposed digit from when I originally filed. I had to file Form 1040X (Amended Return) with the correct information and it took about 12-16 weeks to get the additional refund processed. Make sure to include copies of Social Security cards and birth certificates as supporting documentation. The good news is that once they process the correction, you'll get the full amount you're owed plus any interest!

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