You may enter values for the stimulus checks received to insure that do not receive a Rebate Recovery Credit.
In TurboTax, at the prompt to enter the values received from stimulus check 1 and stimulus check 2, enter values that reduce the Rebate Recovery Credit to zero. If need be, at a later time, you could amend your tax return to report the actual amounts received and receive the Rebate Recovery Credit.
This presumes that the IRS will not be 'correcting' the stimulus check information as it processes 2020 tax returns.
You can access your stimulus check choices by following these steps:
- Down the left side of the screen, click on Federal.
- Across the top of the screen, click on Other Tax Situations.
- At the screen Let’s keep going to wrap up. Click on Let’s keep going.
- At the screen Let’s make sure you got the right stimulus amount, click Continue.
- At the screen Did you get a stimulus payment? you can update your stimulus check entries.
TurboTax will compare your two payment amounts to the computation within TurboTax. The computations within TurboTax are based upon the information that has been entered into the tax software. If you are due an additional amount, it will be issued as a Rebate Recovery Credit (RRC) on line 30 of the 2020 1040 tax return.
See also this TurboTax Help.
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