topic Re: First Stimulus payment in Get your taxes done using TurboTax

First Stimulus payment

umstaxes — Mon, 22 Feb 2021 01:07:35 GMT

We received our first stimulus payment based on our 2018 taxes in May of 2020; however, we had filed our 2019 taxes in February of 2020 but they were not processed until July of 2020. Because our 2019 taxes had not been processed, the IRS based our stimulus payment on our 2018 income which was significantly higher because I worked two jobs for six months of 2018. We were initially not concerned because we thought we would get a rebate on our taxes we are currently filing for 2020. Instead, the Turbo Tax software appears to only look at your income for 2020 to determine rebates. How can we rectify this situation and get the rebate we are due based on our 2019 income?

Re: First Stimulus payment

VolvoGirl — Mon, 22 Feb 2021 01:10:23 GMT

Sorry it is really based on 2020. if you do not qualify for the Recovery Rebate Credit because of your 2020 tax situation then you will not be able to get the missed stimulus payment.

The Recovery rebate credit is really based on your 2020 AGI, not 2019 or 2018. See my posts on this one. I found a couple IRS links that say if you don't qualify for more based on 2020 and you don't have to pay it back if you got too much.

https://ttlc.intuit.com/community/tax-credits-deductions/discussion/recovery-rebate-tax-credit/00/1764421/page/2

And see the employee expert answer here

https://ttlc.intuit.com/community/taxes/discussion/recovery-rebate-credit-stimulus-incorrect/00/1942655

She said......

If you do not qualify for the Recovery Rebate Credit because of your 2020 tax situation then you will not be able to get the missed stimulus payment.

Re: First Stimulus payment

DoninGA — Mon, 22 Feb 2021 01:11:03 GMT

The Recovery Rebate Credit is based on your 2020 federal tax return information and the 2020 AGI.

Go to this IRS website for the Recovery Rebate Credit information - https://www.irs.gov/newsroom/recovery-rebate-credit

Economic Impact Payments were based on your 2018 or 2019 tax year information. The Recovery Rebate Credit is similar except that the eligibility and the amount are based on 2020 information you include on your 2020 tax return.