Over $10,000 taken off my taxes. It says it's recovery rebate deduction??

Wait, I thought they were still doing those stimulus payments? My cousin said he got one last year. Are you 100% sure they're completely done with those? And what happens if the IRS catches this - would they just fix it or would OP get in actual trouble?

Your cousin was likely referring to a different tax credit, not the Recovery Rebate Credit. The pandemic-related stimulus payments and associated Recovery Rebate Credits were specifically for tax years 2020 and 2021. They are completely done and not available for current tax filings. If the IRS catches this error, they would recalculate the taxes correctly, which means OP would not receive that $10,500 credit. Instead of getting a refund, they would likely owe taxes plus potential interest on the unpaid amount. While honest mistakes generally don't result in fraud penalties, it would definitely trigger notices, delays, and could potentially flag the return for further review.

How does this actually work? Do you have to upload your entire tax return with all your financial info? I'm always nervous about sharing that kinda stuff online.

Sounds interesting but does it handle other tax issues too? I'm not dealing with rebate credit problems but have some questions about contractor deductions and home office rules.

You upload the PDF of your return, but they use encryption and don't store your documents after analysis. It's designed specifically for tax document review, so security is a priority. I was hesitant too, but it's actually safer than emailing tax docs to someone. It definitely handles other tax issues beyond the rebate credit problems. It's particularly good with self-employment stuff like contractor deductions and home office rules. It checks for missed deductions and potential audit flags across your entire return, not just specific credits.

How does this actually work? Like what kind of info do they need from you to hold your place in line?

Yeah right. Nothing gets you through to the IRS faster. I've tried EVERYTHING including calling right when they open. This sounds like some kind of scam that's just gonna take your money and give you nothing.

They just need your phone number so they can call you when an IRS agent is on the line. You don't give them any tax info or personal financial details - they're just handling the hold time for you. I had the exact same reaction initially! I was convinced nothing would work after spending 3+ hours on hold myself. I only tried it because my brother-in-law recommended it. They use a system that keeps dialing and navigating the IRS phone tree until they get a human, then they connect you. I was connected to an IRS agent within 45 minutes of signing up.

I went back through everything and you're totally right! There was a question that asked "Did you receive all Economic Impact Payments you were eligible for?" and I must have clicked "No" by accident. When I changed it to "Yes" the huge credit disappeared and now I owe $3,275 like I originally expected. Thank you! Do you know if I would have gotten in serious trouble if I had filed with that error?

Glad you found it! That question trips up so many people. Since it was clearly just a mistake on a confusing question, you probably wouldn't have faced fraud penalties, but the IRS definitely would have caught it, rejected the credit, and you'd end up owing the correct amount plus interest for the late payment. You might have also had your return flagged for additional review, which could have delayed any legitimate refunds on other parts of your return. Always better to catch these things before filing!

This is such good advice. I never look at the actual forms cuz all the tax software just asks questions instead. Where exactly do you find the forms view in TurboTax? Is it obvious or hidden in some menu?

In TurboTax, you can usually find the forms view by looking for "Tax Tools" in the left sidebar and then selecting "View Tax Forms." If you're using the web version, it might be under a menu called "Tools" or there's sometimes a "Preview" button near the end of the filing process. It's definitely worth checking before filing. The software is generally accurate, but only if all the questions are answered correctly. Looking at the actual forms helps catch errors like this $10,000 credit that shouldn't be there.