DennisW CPA
Level 1

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?

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