Recovery Rebate Credit Calculation Seems Off

[jsolins01]

I filed my taxes through TurboTax. When the TurboTax system asked me about the stimulus payments I received, I noted that I received $140 for the first check and it showed that I was eligible for $460. I submitted my tax return not realizing the recovery rebate was line 30 on the 1040 tax return and thought something may come up  after the return was processed saying I was owed a credit on the stimulus payment and didn't know to look for an amount on the 1040. On the TurboTax FAQs it notes that for filers with income above those amounts, the credit amount is reduced by $5 for each $100 above the $75,000/$112,500/$150,000 thresholds and an individual without children will not receive any credit if their AGI exceeds $87,000. Shouldn't that threshold for an individual with no children to receive no credit be at $99,000 or if if it is $87,000 why did the software tell me I was eligible for $460? When I went through the Recovery Rebate Credit Worksheet available from the IRS website it looks like I should be eligible for an additional $320 (for a total of $460 that was shown on the computer when I went through the questions but the difference didn't show up on my 1040 and wasn't added to my tax return and I can't find any reference to the AGI threshold being $87,000 to be able to receive the credit and wondering if I can somehow amend my return to get the additional stimulus money I may be owed.

[jsolins01]

I've now gone back into my turbotax account to try and amend my return and it looks like I'm eligible for the additional credit and it would allow me to amend my return. I don't understand what happened because when the system prompted me for the stimulus payments I received when I first prepared my tax return, I entered the information. I'm wondering if there's a glitch in the software that the credit didn't originally register to my return when I went to file my taxes last night. From what I can tell in other posts, it's best to wait until I receive my original refund before filing an amendment so I didn't submit the paperwork yet but looks like an amendment will come through a paper check vs. direct deposit that was originally set up. Perhaps I should have stuck with my accountant to file my taxes vs. trying to do it on my own with turbotax. And if there is a software glitch, I hope turbotax fixes it so others don't have this issue.

[ThomasM125]

I'm sorry you are having trouble with all of that. As a practical matter, however, the IRS knows how much stimulus money is due you based on the information on your tax return, so it is likely they will refund any stimulus money due you once they process your tax return. So, you should wait until you receive your refund before working on an amended return.

[jsolins01]

Thanks for the feedback and that would be great if the IRS amended my return and will wait to see as I'm reading it's best to wait to amend my return once I've received my refund. However, from what I can tell on the IRS website, I will need to file an amendment. https://www.irs.gov/newsroom/2020-recovery-rebate-credit-topic-g-correcting-issues-after-the-2020-ta.... They state, if you didn't claim the credit on your original tax return, you will need to file an Amended U.S. Individual Income Tax Return, Form 1040-X. The IRS will not calculate the 2020 Recovery Rebate Credit for you if you did not enter any amount on your original tax return. 

I'm just frustrated that I paid for the turbotax service that missed populating my credit due in the first place and I didn't realize to look for line 30 before submitting the return to make sure it was entered but I also didn't see any other mention of the credit after I entered in the EIP payment I did receive and thought the online program would have entered the credit due if I was eligible and now to go back into the system it shows additional money I'm due. At least I can amend the return in a few weeks once I get my refund but not a very seamless process and experience using Turbotax as I would have hoped for.

[ThomasM125]

The program asks you for the amount of stimulus money you received for the first two rounds of stimulus. I'm not sure why based on your input the correct amount of stimulus to be refunded was not entered on line 30 of your tax return, assuming you are owed an additional amount.

Since the amended return does show a refund, it is best to wait until you receive your refund and if the additional stimulus amount is not included, then proceed to file your amended return.

[jsolins01]

Thanks for the follow up! I appreciate it. I don't know if when I entered in the cents on the stimulus payment I received if that threw it off the software vs rounding but the prompt said to be accurate or your refund could be delayed. I went through my return a few times to double check things and the EIP amount I received was there but then the credit was not on the 1040 and I didn't realize to look for line 30 before I submitted and there was a FAQ that I found on Turbotax saying that an individual without children will not receive any credit if their AGI exceeds $87,000 so I thought that was the problem but I can't find anything to that effect on the IRS website and when I use the IRS Recovery Rebate schedule, although after I filed, it shows the same amount due that is now coming up when I try to amend the return. I just hope this added hassle doesn't happen to others as well that are filing electronically if there's a glitch with the turbotax software and wish I could get a credit on my turbotax fee for the hassle and glitch in the software.