IRS Adjusted My Return and Took $1,400 - Already Received Previous Credits?

This is almost certainly related to the Recovery Rebate Credit being incorrectly claimed. It's similar to what happened to my sister last month - the IRS system automatically adjusts returns when their records show you already received the stimulus payments but claimed them again on your return. Their system is pretty accurate about tracking who received what payments, much more so than with other credits like the Child Tax Credit. Have you checked your tax return to see if you or your tax preparer accidentally claimed the credit on line 30 of your 1040?

Had the same prob last yr! The IRS systems don't always sync up correctly w/ what you actually received vs what you're eligible for. I was super confused until I uploaded my transcript to https://taxr.ai and it highlighted exactly where the adjustment was made and explained why. Turns out their records showed I got the 3rd EIP when I swore I hadn't. Saved me hrs of confusion tbh. The tool breaks down all those confusing codes and tells you what's actually happening w/ your return.

Don't worry too much about this - it's actually a pretty standard adjustment. The IRS has been doing this automatically for the past couple of tax seasons. What's probably happening is that you or your tax software accidentally claimed the $1,400 credit that you already received. Think of it like trying to cash the same check twice - the bank's gonna catch it! 😂 You should receive a notice (probably a CP12) in the mail in the next couple weeks explaining the adjustment.

I had this exact situation happen with my return this year. The IRS adjusted my refund down by $1,400 because their records showed I had already received the third Economic Impact Payment last year. Did you use tax software to prepare your return? Did it ask you if you received the third stimulus payment? Sometimes the questions can be confusing and it's easy to answer incorrectly. Did you check line 30 of your Form 1040 to see if there's an amount listed there?

This is frustrating but fixable. Here's what you need to do: 1. First, check your IRS account transcript to confirm the adjustment reason 2. Look for a 971 code followed by a 570 code - this means they adjusted your return 3. If you disagree with their adjustment, you'll need to call the IRS directly 4. Be prepared to wait 2+ hours on hold with their regular number I wasted THREE DAYS trying to get through on the regular IRS number. Finally used Claimyr (https://www.claimyr.com) and got connected to an agent in about 15 minutes. They explained exactly why the adjustment was made and what documentation I needed to submit to dispute it. Saved me so much time and frustration.

Have you checked if you accidentally claimed the Recovery Rebate Credit on line 30 of your 1040? It's a common mistake that happens all the time. Wouldn't the software have asked if you received the stimulus payments? Did you keep records of which payments you received? The IRS will automatically correct this if they show in their system that you already received the payments. You should get a notice explaining the adjustment within a few weeks, but do you really want to wait that long when you need the money for medical bills?

I'm a bit confused about your situation. Did you perhaps enter something on line 30 of your Form 1040? That's where the Recovery Rebate Credit would be claimed. I'd be very careful about checking your return copy before taking any action. Could you possibly have misunderstood a question in the tax software about prior stimulus payments?

Call the Taxpayer Advocate Service directly at 877-777-4778. They can help when regular IRS channels aren't working. Tell them you have a financial hardship due to medical bills and need expedited assistance. They can sometimes intervene when there's an urgent need. Don't waste time with the regular IRS phone lines.

The IRS issued Notice CP12 for these types of adjustments. The notice explains that they changed your return based on their records of stimulus payments already issued to you. The $1,400 amount corresponds exactly to the third Economic Impact Payment (EIP3) from 2021. According to the IRS Internal Revenue Manual section 21.6.3.4.2.1, taxpayers who disagree with the adjustment have 60 days to submit documentation proving they didn't receive the payment.

Had this last month. Same amount. $1,400 taken. Freaked out. Called IRS. Waited two hours. Agent explained. I claimed RRC. Already got stimulus. System caught it. Adjusted automatically. Got CP12 notice later. Explains everything. Can't dispute it if records correct. Check line 30 on your 1040. Probably shows $1,400 there. Common mistake.