fs-2021-06, April 2021
For taxpayers who received a letter from the Internal Revenue Service about their recovery refund credit, here are answers to frequently asked questions.
why did i get more than one letter from the irs about my economic impact payments?
After each of the three Economic Impact Payments is issued, the IRS sends a letter, called a notice, to each recipient’s last known address. This notice provides information about the amount of the payment, how the payment was made, and how to report any payment that was not received.
- notice 1444, your economic impact payment. The IRS mailed this notice within 15 days of issuing the first payment in 2020. Some people received another 1444 notice if the IRS corrected or issued more than one payment in the first round. Taxpayers who received a 1444 notice but did not receive their first payment, check out the FAQs on what to do if your second payment is lost, stolen, destroyed, or not received.
- notice 1444-a, you may need to act to claim your payment. Last fall, the IRS mailed this letter to people who are not normally required to file federal income tax returns but who may qualify for the first Economic Impact Payment as part of the IRS’s effort to get the payment to eligible people.
- Notice 1444-b, your second economic impact payment. Unlike the 1444 notice, the law that authorized the second payment gave the IRS more time to send the 1444 notice -b to the people to whom the second payment was issued. this means they may have received the second payment several weeks before receiving a 1444-b notice. For taxpayers who received the 1444-b notice but did not receive the second payment, see the FAQs on what to do if your second payment is lost, stolen, destroyed, or not received.
- Notice 1444-c, your 2021 Economic Impact Payment. Later this year, the IRS will mail this letter to people who received a third Economic Impact Payment . this letter should be kept with the 2021 tax year records.
Keep received IRS notices related to Economic Impact Payments with other tax records. The IRS cannot issue a copy of the notice if it is lost or never received, even if payment has been received. Taxpayers who do not have their notices can check the amounts of the first and second Economic Impact Payments through their online account.
some people who received an eip debit card and had not yet activated their card received a letter earlier this year reminding them to activate their card or request a replacement if they accidentally dropped it. see the frequently asked questions about this reminder letter.
I made a mistake calculating the 2020 catch-up refund credit on my 2020 return. Will the irs fix it and let me know?
yes. the irs will not reject a tax return if an error was made in calculating the 2020 recovery refund credit. if a taxpayer entered an amount on line 30 but made an error in calculating the amount, the irs will calculate the correct amount of the 2020 Recovery Refund Credit, you will make the correction to the tax return and continue to process it. If a correction is needed, there may be a slight delay in processing the return, and the IRS will send a notice explaining any changes made. the recovery refund credit is included in the tax refund. To check the status of a refund for an original return, check where’s my refund? It is not necessary to file an amended tax return with the IRS to correct this error.
i got a letter from the irs saying there was a problem with my recovery refund credit. what should i do?
The notice that the irs changed the amount of a 2020 recovery refund credit will also explain the reason for the change. Review the 2020 Tax Return, 2020 Recovery Refund Credit Requirements, and Worksheet on Form 1040 Instructions and Form 1040-SR. The 2020 Recovery Refund Credit Questions and Answers provide additional guidance for specific situations addressed in the related IRS notices.
I got a letter saying I didn’t calculate my 2020 catch-up refund credit correctly. What if I disagree?
Taxpayers who disagree with the IRS’s calculation should review the Notice and the Recapture Refund Credit Questions and Answers before contacting the IRS. They provide additional information to explain what errors may have occurred and what information you should have available when you contact the IRS.
I’m eligible for a 2020 catch-up refund credit, but I didn’t claim it on my 2020 tax return. Do I need to amend my 2020 tax return?
yes. Those who did not claim the credit on their 2020 tax return by entering an amount on line 30 of Form 1040 or Form 1040-SR, will need to file a U.S. Amended Form 1040-X. uu. personal income tax return. The IRS will not calculate the 2020 catch-up refund credit if the taxpayer did not enter any amount on their original 2020 tax return.
Those who need to file an amended return to claim the recovery refund credit should use the worksheet on page 59 of the 2020 instructions for forms 1040 and 1040-sr to determine the amount of the credit. enter the amount in the refundable credits section of the 1040-x and include “recovery refund credit” in the explanation of changes section.
Those who filed their 2020 return electronically and need to file an amended return can file Form 1040-x electronically.
Taxpayers who did not file their 2020 return electronically will need to submit a paper version of Form 1040-x and should follow the instructions for preparing and submitting the paper form.
Form 1040-x filers electronically or on paper can use the Where’s My Amended Return? online tool to check the status of your amended return.
For more information, visit irs.gov/rrc and the FAQs by topic.
- topic a: claiming the recapture refund credit if you are not required to file a tax return
- topic b: eligibility
- topic c: claiming the credit
- topic d: calculating the credit
- topic e: receiving the credit
- topic f: finding the first and second economic impact payments to calculate the refund of 2020 credit recovery
- topic g: correct problems after filing the 2020 tax return