Stimulus Pmt Returned From Old Chkg Acct

[DawnCoates]

Even though I was told by credit union customer service reps twice that my second stimulus payment would be transferred from my old account to my new account like my first payment was, and that I didn’t have to do anything for this to happen again, the credit union returned my deposit from the old account yesterday instead. How will I be able to get my money now? Do I have to wait until I file my tax return? 

[Irene2805]

According to the IRS:  

If the second Economic Impact Payment was sent to an account that is closed or is no longer active the financial institution must , by law, return the payment to the IRS, they cannot hold and issue the payment to an individual when the account is no longer active. The IRS advises people that if they don’t receive the full Economic Impact Payment they should file their 2020 tax return electronically and claim the Recovery Rebate Credit on their tax return to get their payment and any refund as quickly as possible.  [Questions and Answers about the Second Economic Impact Payment]

You can make an adjustment on your 2020 tax return for stimulus payments you qualify for, but have not received. 

To do this in TurboTax, please follow these steps:

1. Enter the information in your return.
2. Click Federal Review at the top of your screen. 
3. On the screen, Let's make sure you got the right stimulus amount, click Continue.
4. You will be asked about the amounts of first round and second round stimulus payments you received. 
5. TurboTax will then calculate the amount of stimulus payment remaining that you are still entitled to.  This will show as a credit on line 30 of the 1040.

For more information, please click on the following links:  

• Why Haven’t I Received My Second Stimulus Check?
• Questions and Answers about the Second Economic Impact Payment
• IRS Economic Impact Payment Information Center

[DawnCoates]

Any idea why there wasn’t an easy way to change checking account info on the IRS site or in TurboTax? Or did I miss that? 

[cspangie]

Working on Economic Impact Rebate...  My mom did not receive the 1st and she should have, but does not qualify for the 2nd (she passed away).  TurboTax only allows me to get rebate for both or neither.  Since she didn't receive a payment, (making both amounts 0), it automatically creates an $1800 credit, when she was only entitled to the first $1200.  Ideas?

[ReneeM7122]

@cspangie, we are sorry for your loss.  To answer your question about the calculation you see in TurboTax for the Recovery Rebate Credit , it is correct. 

Regarding eligible individuals who died in 2020, the IRS states that the Recovery Rebate Credit may be claimed on line 30 of their 2020 tax return.  This means that though your mother isn't eligible to receive a direct payment, the money will benefit her estate in the form of a refundable credit.

What if the Recovery Rebate Credit is higher than stimulus amount(s)?

Stimulus payments were meant to be an advance of the credit. That means that if the total of those two payments is less than the Recovery Rebate Credit amount, you can get the difference back in the form of a refund.  Moreover, if you received more than the amount of the credit, no repayment is required.  You get to keep the money.  So don't worry - TurboTax has calculated your credit correctly.

Here is an IRS link that discusses the Recovery Rebate Credit in further detail.

[cspangie]

Thank you so much for your help!  I really appreciate it 🤗