2021 stimulus check (3rd payment)

Forum|Forum|4 years ago
March 25, 2022
7 replies
42 views

I did not receive the 3rd stimulus payment in 2021 based on an AGI over $80k that included money that I moved from a Traditional IRA to Roth. Without the conversion/rollover (i.e., increased taxable income) I would have been below the $80k cutoff.

Shouldn't I have been eligible for the stimulus payment? They are basically penalizing me for being taxed on money that was already mine. I have entered all my info in TurboTax for 2021 all the way through the Review but it has not asked me anything about the payment. I thought it would catch up to me this year.

Best answer by VolvoGirl

It is really based on your 2021 return this year. They just used 2020 to send the checks out fast. Is your 2021 AGI too high again?

To get to the stimulus questions in TurboTax at any time, you can search for stimulus or recovery rebate credit then hit ENTER and there should be a Jump to link

If you are trying to trigger it,

Click on Other Tax Situations at top

Click on Let's get started

Answer some questions then Continue

Then click on Let's keep going

Next screen is for the Third Stimulus, if you qualify

If you did not get prompted to enter your stimulus information, that means you either:

Filed as a dependent being claimed on another tax return, or
have an AGI too high to claim the recovery rebate

VolvoGirlAnswer

Level 15

It is really based on your 2021 return this year. They just used 2020 to send the checks out fast. Is your 2021 AGI too high again?

To get to the stimulus questions in TurboTax at any time, you can search for stimulus or recovery rebate credit then hit ENTER and there should be a Jump to link

If you are trying to trigger it,

Click on Other Tax Situations at top

Click on Let's get started

Answer some questions then Continue

Then click on Let's keep going

Next screen is for the Third Stimulus, if you qualify

If you did not get prompted to enter your stimulus information, that means you either:

Filed as a dependent being claimed on another tax return, or
have an AGI too high to claim the recovery rebate

cas61Author

Level 2

Thanks for the quick reply.

Unless I’m misunderstanding where the AGI comes from, it is too high because of my taxable income. My situation for 2021 is the same as 2020. In both years, I moved money from my T-IRA to a Roth and I was taxed on it. That taxable “income” made my AGI too high to get a stimulus check even though I haven’t physically received any of my own retirement funds. Without that I would have been under $80k in both years.

I had no earned income either year — only 1099R, INT, DIV. Do the rules of the stimulus disqualify me simply because I had to pay taxes on money I had already earned, just moved into a different retirement account? That’s not fair.

AmyC

Level 15

Yes. You made the choice to move the money from a pre-tax account to an after tax account which increased your income and disqualifies you from receiving the stimulus. Had you chosen not to move the money, you would have the stimulus it sounds like.

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