What kind of mistakes could I have made?
Some issues people have claiming the Recovery Rebate Credit fall into similar patterns. The IRS isn't going to reject your return but if you're mindful of potential errors, you could avoid some delays and disappointments.
Many times, you'll see a smaller than expected tax refund if you don't understand how the Recovery Rebate Credit works.
Here's a list of what some people are doing wrong:
—You were claimed as a dependent on another person's 2020 tax return. If so, you don't qualify for the first or second stimulus payments.
—You did not provide a Social Security number that's valid for employment.
—You tried to claim stimulus money — which you wouldn't be qualified to get — for a child who was age 17 or older on Jan. 1, 2020.
—You overlooked a math error relating to calculating adjusted gross income and any Economic Impact Payments already received.
Luscombe said some of these errors associated with the Recovery Rebate Credit are similar to ones that the IRS has had to deal for years involving other tax breaks.
For example, he said, the IRS has long had to look for persons claimed as a dependent on more than one tax return. And the IRS regularly rejects returns for invalid Social Security numbers and frequently corrects math errors.