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Level 3
April 2, 2021
Solved

irs not allowing economic impact rebate recovery on filed returns

  • April 2, 2021
  • 13 replies
  • 65 views

I have a client that only received 832 for the first EIC payment because they used the 2018 return (we had not filed 2019 yet).  However, she only had 5800 AGI in 2020.  We put in for the other 368 using the Recovery Rebate Credit worksheet.  I filed the return; it was accepted.  But now when I open the return, it says the IRS made a change to the return after it was filed.  further viewing shows the 368 adjustment was denied.  Now what do I do (or what should the client do)?

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Best answer by qbteachmt

"But now when I open the return, it says the IRS made a change to the return after it was filed."

It tells you "a change" was made. Not by the IRS. Did you read the link provided by Lisa, to the announcement by Intuit, that is a False Error message?

13 replies

Just-Lisa-Now-
Intuit Community Champion
April 2, 2021

Did the actual return change?  or are you just seeing the bug thats been happening since the 11th?

https://proconnect.intuit.com/community/proseries-tax-news-updates/discussion/proseries-2020-produces-message-for-e-filed-returns-with-the/00/145753

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
Bill50Author
Level 3
April 2, 2021

I am sorry.  I am not aware of the bug.  Is this a Pro Series bug, or an IRS system bug?  Was there an alert sent out on this?

PATAX
Level 12
April 2, 2021

Bill I would just wait a little bit and see what happens... Maybe it will work itself out....

qbteachmt
Level 15
April 3, 2021

"We put in for the other 368"

832 + 368 = 1200

That's only the First payment.

This person would also be entitled to the Second payment, the $600.

Perhaps it would help to review what is really happening for EIP “stimulus” funds: The funds were paid out as Advanced payment against a projection. The first two payouts were projected based on 2018 or 2019 tax returns, but the eligibility is part of tax year 2020 as Actuals. You use the 2020 return to reconcile what a person is entitled to, against what they got.

If the person is not a dependent in 2020, then they would be eligible for consideration as individual filers. That doesn't mean "not being claimed." It means "no longer qualifies as a dependent." You must correctly address whether they Can be Claimed as a dependent on someone else’s tax return.

The third payout which started in Jan 2021, has different eligibility rules as to dependents and this payout is a projection, using 2019 or 2020 tax returns, then reconciled against Actuals on the 2021 tax return.

You might want to bookmark these links and read the IRS guidance.

Interactive wizards portal includes one for determining dependency:

https://www.irs.gov/help/ita

And:

https://www.irs.gov/newsroom/economic-impact-payment-information-center-topic-a-eip-eligibility

https://www.irs.gov/coronavirus/second-eip-faqs#Eligibility

https://www.irs.gov/newsroom/irs-is-issuing-third-round-of-economic-impact-payments

One for each of the three EIP “stimulus” payments.

Don't yell at us; we're volunteers
Bill50Author
Level 3
April 3, 2021

that is what's strange about it:  she received the 600 second payment and the 1400 third payment.

dkh
Level 15
April 3, 2021

IRS does not change returns in ProSeries.  IT IS NOT POSSIBLE.   If IRS is going to make a change to a return the taxpayer receives a letter.    The change you are seeing is a program issue.

Bill50Author
Level 3
April 3, 2021

Thanks for your response.

qbteachmt
qbteachmtAnswer
Level 15
April 3, 2021

"But now when I open the return, it says the IRS made a change to the return after it was filed."

It tells you "a change" was made. Not by the IRS. Did you read the link provided by Lisa, to the announcement by Intuit, that is a False Error message?

Don't yell at us; we're volunteers
Bill50Author
Level 3
April 3, 2021

Thank you to everyone who responded to the issue.  Glad to find out it is a ProSeries bug and not something more drastic.  Happy Easter, everyone.