Recovery Rebate Credit Change After E-File

[msmith7305]

When opening client after e-filing received a notice that the Recovery Rebate Credit had changed.

Single taxpayer, no dependents, with 2019 AGI of $81,829. Based upon that she received the correct amount of EIP #1 of $859 and $260 for EIP #2. Total of $1,119.

Her 2020 AGI is $78,220. Based upon that she should have received $1,039 for EIP #1 and $439 for EIP #2. Total of $1,478.

PS calculates Recovery Rebate Credit of $359 ($1,478 - $1,119.).

The Changes Since E-File Worksheet shows credit should be $0.

Did a completely new "dummy" return with same facts and got same result.

Has anyone else seen this issue?

[TaxGuyBill]

Last week I had one that had that pop-up notice and it shows that the Recovery Rebate changed (the 'changes' form showed the credit was $0), but when I looked at the actual return compared with what I filed, nothing changed.

So while my issue (it didn't REALLY change the tax return) was different than yours (it ACTUALLY changed the tax return), it does seem to indicate something is screwed in the software.

[Just-Lisa-Now- · Accepted solution]

Its an update bug from last week.  I reported it on Thursday evening, it was sent to development on Friday morning...Im sure the next update will have it worked out.

The actual tax return didnt change, right?

[MARYNAV]

I have had the same thing happen with the last three tax returns I e-filed.  I went back into to print out the 9325 for my file and got that message.  When I hit the button to show me what change it pulled up an amended return taking out the entire RR credit that I took on the return which was appropriate on all three returns.  It didn't change the return itself.  I am so relieved to hear it is a bug.  The first time it happened it was for a very difficult, high maintenance client who was supposed to get the full $1,800 on the return and I dreaded telling her that she might not get the credit.

I guess all these bugs will be worked out by April 15th??

[Just-Lisa-Now-]

false popup message, the returns are correct.

[msmith7305]

Thanks. Good to know.

No, the actual return was not altered or changed.

Just a BIG surprise when you get the pop-up!

[psaund9860]

I have the same problem.  Client did not receive payments based on 2019 income of $296,000.  This year's income is $112,000 and Proseries computed $3,600 in Recovery Rebate Credit.  Upon opening the return after efile, the $3,600 is in error on "Display Changes".

[MARYNAV]

My returns that were entitled to the recovery rebate as part of their 2020 return are still coming up with a pop up message "Pro Series detects that amounts calculated in this return have been changed since your return was e-filed."  They are still showing that these people were not entitled to the recovery rebate.

I can't imagine that this hasn't been fixed yet and find it troubling every time I open one of their returns.  

I have downloaded updates regularly all through tax season.  Anyone else still seeing this?

[Just-Lisa-Now-]

I thought it went away, but I guess I just havent had any recently with it on there....I just opened a return filed a month ago and I still get the popup

[MARYNAV]

Well, at least it isn't just me.  Two of the returns are taking extra long to process which is why I had to open them up again.  It would be great if they would fix it!

[psaund9860]

I still get the change notice on my returns also.

[DennisW CPA]

I have a situation where a client received an IRS notice saying that the recovery rebate credit was decreased by $500. I opened the return in ProSeries and found that ProSeries had also changed the return subsequest to e-filing to lower the credit by $500. The original return was filed in late February 2021, before the early March Congressional law changes that stated that up to $10,200 of unemployment was not taxable to lower income taxpayers. Did Congress change the computation of the recovery rebate credit when they did the change for unemployment compensation? Has any one else encountered this?

[Just-Lisa-Now-]

There was some weird glitch early in the filing season with teenagers that were too old for the credit, the program was giving them credit anyhow, you had to delete and reenter the dependent for it to compute properly.

If we weren't paying attention too well, it could slip past pretty easily.

Could this be your situation?

[DennisW CPA]

This is exactly my problem. Thank you so much!