TurboTax is not wrong.
Eligibility for getting the payments mailed in 2020 was based, in most cases, on your 2019 or 2018 tax filings. 3 If you did not receive your payment or the full amount due, for example, because the income on your taxes was too high and your lower income in 2020 would have qualified you--or because of a change in number of dependents in 2020 compared to 2019--you can claim the amount due as a refundable tax credit on your 2020 Form 1040 or 1040-SR filed in 2021. Both Form 1040 and Form 1040-SR will include a line for "Recovery Rebate Credit."
Once eligible, you may qualify for a full or partial Recovery Rebate Credit on your 2020 return if any of the following apply:
- You were eligible for payment but did not receive one.
- You did not receive the full amount to which you were entitled.
- Your 2020 income makes you eligible for a rebate (or larger rebate) now.
- You had a child in 2020 after you received your stimulus payment.
