2020 tax return was accepted, but 3rd stimulus check did not include new dependents

[ellefunt07]

We had twins in 2020. Our 2020 tax return was accepted and we received our refund, including the additional dependent credits that we missed out on in the first 2 stimulus checks. However, the 3rd stimulus check still does not include these dependents. Everything I am reading says it should have used our accepted 2020 return information. How can I resolve this? Thank you.

[DMarkM1]

At this point the IRS is still reconciling 2020 tax returns and stimulus payments.  The law indicates that once the IRS processes the 2020 returns that change eligibility for third round stimulus payments, they will issue the updated payments. 

Here is a page to monitor that gets updated frequently.  Any further guidance on the third round of stimulus will appear here.   

[ellefunt07]

Thanks for your reply, @DMarkM1. Am I understanding you correctly to mean that "processing" the 2020 tax returns for stimulus check purposes is separate from processing them for the 2020 refund? If so, is there any indication on what is involved or how long it will take? This should be resolved before 2021 tax filing, yes?

[JamesG1 · Accepted solution]

It does appear that your 2020 Federal 1040 tax return was filed, accepted and the correct refund issued.  Despite these facts, it appears that the IRS used 2019 tax information in computing your third stimulus payment.

This TurboTax Help states:

Do I need to do anything to get my stimulus check?

You don’t need to do anything to get your stimulus check. The IRS will determine eligibility based on your last tax return (either 2019 or 2020) and will likely send your payment to the bank account where your tax refund was deposited.

The IRS says that the only way to update your mailing address and banking information is by filing your 2020 Federal 1040 tax return.  The IRS is making no portal available.

Since your 2020 Federal 1040 tax return was accepted, we do not know why the IRS issued a third stimulus payment using 2019 tax information.  We do not know when or how the additional third stimulus amounts will be processed. 

We presume that at some point, the updated 2020 Federal 1040 tax return information will be updated and payments issued but we do not know what the IRS plans to do.  The IRS could, again, use the 2021 Federal 1040 tax return to reconcile the third stimulus payments.

Follow the TurboTax COVID Tax Center and the IRS Economic Impact Payment Information Center as further updates are issued by the IRS.