Incorrect First Covid Payment

[BillnSuz]

When I filed our return in 2019, Our adjust gross income was about $152,000.  We received our first covid-19 payment of $2,350.  I subsequently received and updated 1099-R from our brokerage house and it ended up lowering our AGI to $148,000.  That means that we should have received the entire $2,400.  I was told that I would be able to get the $50 as a credit on my 2020 taxes.  I just ran did our 2020 return and this years AGI is over $150,000 so that the payment in 2020 was correct.  I think that is wrong but I don't know how to get the money we should have been paid.  Any suggestions?

[xmasbaby0 · Accepted solution]

The stimulus money you get for claiming your children is based on your 2020 tax return.    When they hurried to send out checks last year they could not wait for people to file tax returns so they used either 2018 or 2019 information that was in the system already.   

The stimulus was an advance credit that you can get on your 2020 return.   If your 2020 income exceeds the threshold then you are subject to the phaseout of the amount you can receive---or you might not receive anything at all.

The IRS is not going to go back to use 2019.  Sorry.