TurboTax Stimulus Issues

Taxpayers who filed their federal income tax returns through e-file providers such as TurboTax has faced issues with their stimulus payments. The Internal Revenue Service took a different approach with the second round of stimulus payments. Instead of paying the taxpayers directly, the IRS sent funds to TurboTax and other large e-file providers like H&R Block and this caused a delay.

If you haven’t received your second Economic Impact Payment yet, be patient as you will get it. Unless your stimulus status showing as the status not available, you will receive it in less than a week or so.

However, that’s of course assuming the IRS has your payment information. If the IRS doesn’t have your payment information, you will need to claim the recovery rebate tax credit 2021.

Update: There have been speculations as to the IRS sending stimulus payments to the wrong bank accounts. There is a very slim chance that this can happen but if that’s the case, know that by law, financial institutions are required to return the payment to the IRS. This can cause delays but you will certainly get your stimulus payment.

Recovery Rebate Tax Credit

This tax credit is a one-time credit you can claim if you were eligible for the Economic Impact Payments, but didn’t get any or apply for it online by late-November.

The easiest way to know if you’re going to get a stimulus payment or will need to claim this credit is to look up the status of your payment. You can see the status of your stimulus payment on Get My Payment.

The stimulus status showing as “stimulus status not available”? This means you won’t be getting a stimulus payment. If you’re eligible for the stimulus payment, this is probably because the IRS doesn’t have your payment information. What you can do is claim the recovery rebate credit. This tax credit is fully refundable so regardless of the amount of your stimulus payment, it will add up to your tax refund.

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