Turbo tax online doesn't correctly calculate the first stimulus check. I didn't receive $500 for my 16 year old (at the time) daughter, but the tool doesn't pick it up.

[petercud]

Anyone else see the same issue?

[DoninGA · Accepted solution]

The credit is based on the age of the child on your 2020 tax return.  If the child is age 17 or older in 2020 they are not eligible for the $500 Economic Impact Payment on the 2020 federal tax return.

[petercud]

Thanks DoninGA so even though the April 2020 payment was based on the 2019 Tax Return,  the child payment is based on the age of the child at the end of 2020? 

[DoninGA]

Correct.

[petercud]

i'm still a bit confused here...what i have read is that the first stimulus payment sent out under the March CARES Act allocated up to $1,200 for qualifying American adults, and $500 for the dependents listed on their 2019 tax returns -- so long as they were age 16 or younger.  If my daughter turned 17 in Mid Year 2020 that would have meant she 16 and should have received a paymen.

thanks,

Peter

[DoninGA]

The stimulus payment made in 2020 was a tax credit advance on the 2020 tax return.  But the IRS used the information from the 2019 or 2018 federal tax returns to facilitate the Economic Impact Payment.

IRS website for Economic Impact Payment information - https://www.irs.gov/coronavirus/economic-impact-payment-information-center

[petercud]

Thanks DoninGA, the link you listed is a bit more clear than HR748 

One final question, as this is a credit on the 2020 return, will it be recalculated when i file the 2020 return and if my  AGI is higher will I be required to make a repayment?

[DoninGA]

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@petercud wrote:

Thanks DoninGA, the link you listed is a bit more clear than HR748 

One final question, as this is a credit on the 2020 return, will it be recalculated when i file the 2020 return and if my  AGI is higher will I be required to make a repayment?

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If on your 2020 return your AGI is higher where you would have received less than received in 2020, you do not have to pay back any of the stimulus already received.

[NCperson]

@petercud and everything @DoninGA wrote will also pertain to the 2nd stimulus payment.  I would hope TT to get that programmed into the software by the time the filing window opens.  Suggest not filing your taxes until you are confident that TT has refreshed the software to reflect the 2nd stimulus payment.  Look to Line 30 on Form 1040 for the final reconciliation (in your case, this looks like it is going to be $-0-)