Adjusted Refund Recovery Rebate Credit

[mawenninger]

So I use Turbo Tax to do my dad's return.  My dad's returned was also adjusted by the IRS, however, line 30 doesn't say 1200 it says $600 and this is a calculated field based on the worksheet which also clearly designates single.  So I am not sure that this is the issue.  However, I did notice another issue that concerns me for some reason on his return even though I selected Standard Deduction Turbo Tax decided to use an itemized amount other than Std Deduction and I have no idea how or why this happened because I don't have Schedule A filled out because I know Std Deduction is better.  I have been using Turbo Tax for many years and never had any issues.  Just curious if anyone else ran into a similar issue.  Also one last thing Turbo Tax will not let me override the itemized amount which is really odd to me.  I am concerned that this may impact his taxes for this year.  Please advise

[VolvoGirl]

How much is the itemized deduction on line 12?  If he is over 65 he gets an increase in the Standard Deduction.  For 2020 the standard deduction for Single is 12,400 + 1,650 for 65 and over or blind (14,050)

[xmasbaby0]

Sounds like you are talking about a 2020 return---although you did not say-----on a 2020 return you could use the recovery rebate credit to get the 1st and/or 2nd EIP payment.  The first EIP payment was for $1200; the 2nd one was for $600.   You see $600 on line 30, so he got the 2nd one as a recovery rebate credit.   Did he receive the 1st one?  

Did he file married filing separately?   If so, he had to file itemized if his spouse filed itemized.    What do you see on line 12 of his 2020 Form 1040?   

2020 Standard Deduction Amounts

Single $12,400   (+ $1650 65 or older)

Married Filing Separate  $12,400   (+ $1300 if 65 or older)

Married Filing Jointly $24,800   (+ $1300 for each spouse 65 or older)

Head of Household $18,650  (+ $1650 for 65 or older)

[mawenninger]

14,050 is the number.  So its good to know that is correct then because he is over 65.  So I feel better about that thanks.  Now I just need to understand the Recovery Rebate.  Correct me if I am wrong but it sounds like the total or a portion of the rebate was or should be subtracted from the refund.  If this is correct I believe he received 1200 which would account for the reduced amount of $600 from the IRS from the refund.

[xmasbaby0]

Yes----if he already got the $1200 then he could still only get $600 as a recovery rebate credit on a 2020 return.   If you are not sure what he received you can check the IRS account online.  That will show the stimulus payments that were issued for his SSN.

https://www.irs.gov/payments/your-online-account

[VolvoGirl]

If he only got the first Stimulus payment for 1200 then he gets the 2nd one for 600 on his tax return line 30.  Line 30 is included and added to his refund, not subtracted. 

But you should check if he really got the 2nd $600.  If he claimed a missing stimulus payment on his return but the IRS took it off you have to ask the IRS. They think they already sent it to you. Did you get the 2nd round after you filed your return?   Maybe it went to an account you don't remember. Or you got a check or a card. It was probably easy to miss the debit card in the mail and think it was junk mail. They have to put a trace on it.

How to put a trace on a missing 1st or 2nd Stimulus payment.  IRS for Payment Issued but Lost, Stolen, Destroyed or Not Received

See question F3 here, you can expand it to see how to put a trace on it.

https://www.irs.gov/newsroom/2020-recovery-rebate-credit-topic-f-finding-the-first-and-second-econom...

[mawenninger]

So yes you are correct it was for 2020.  As for itemized nope my dad is a widow. 

Line 12 shows 14,050.

[mawenninger]

I am pretty sure he got the additional $600 in a check after we had filed his taxes for last year.  So this would account for the exact amount reduced from his refund.  I will have to go check and see his account online to see how many EIP's he received.  Thanks for all your help.  Like I said I have never had a problem with Turbo Tax before.

[xmasbaby0]

@mawenninger Lots of mistakes were made with that 2nd EIP payment.   Some people received it after they filed so the IRS adjusted it off their refunds.   Some people were confused and did not enter that they received it...etc. etc. etc.   Just make sure he got all the EIP payments he should have received.   And if he did not get the 3rd one for $1400 that can be entered as a recovery rebate credit on his 2021 return.

[JamesG1]

Are you referring to a 2021 or 2020 Federal 1040?

Line 30 of the 2021 Federal 1040 reports a Recovery Rebate Credit. 

In the background, TurboTax computes a third stimulus payment amount based on the information input into the tax return.

TurboTax then compares the stimulus payment amount that you enter in TurboTax at the screen Federal Review /  Let’s double-check the amount you received.

If you are due an additional third stimulus payment amount, TurboTax issues a Recovery Rebate Credit (RRC) on line 30 of the 2021 1040 tax return.

[mawenninger]

He didn't get the third EIP for sure so I will definitely add that in for his 2021 return.  I will also make sure to create an account so I can go verify what the IRS says they gave to him.  Thank you for all the help.  I am usually pretty good with taxes but these EIP payments are a new ball game.