topic Recovery Rebate Credit - My income went down in 2020. in Get your taxes done using TurboTax

Recovery Rebate Credit - My income went down in 2020.

Daviator — Fri, 12 Mar 2021 23:08:23 GMT

I'm married filling jointly and have 1 minor dependent. My income in 2019 was high enough that my stimulus check was adjusted down. I received $2900 for the first one, and $1244.35 for the second payment. The first one is the full amount (1200+1200+500), because it was calculated from my 2018 AGI. By the time the second check was sent I had already filed my 2019 taxes and the AGI for 2019 is $161,xxx. Hence the lower amount. Should have been 600x3=1800, but was scaled down to 1244.35.

So now that I have filed my 2020 taxes AGI 149,xxx don't I qualify for the whole amount? When I filled out the section on Turbo Tax that was asking about the amounts that I received, the software said that I already received all that I was owed. I now believe that calculation was wrong for some reason. To complicate matters a bit more I already did file my 2020 taxes returns with the IRS and its already been "accepted". I believe that my return should be adjusted by $555.65 in my favor.

Re: Recovery Rebate Credit - My income went down in 2020.

DawnC — Fri, 12 Mar 2021 23:54:04 GMT

It does not matter what your 2018 or 2019 tax return showed for AGI. Those numbers were only used to calculate the advance payments. The stimulus you should have received is based on your 2020 tax return and AGI number on Line 11 of Form 1040. Doublecheck that number and remember that both stimulus payments are reduced by $5 for each $100 your AGI is above $150K. You probably already received more than you qualified for - but you do not have to repay any excess that you received.

Re: Recovery Rebate Credit - My income went down in 2020.

Daviator — Sat, 13 Mar 2021 00:46:40 GMT

If it’s based on only my 2020 AGI ($149,xxx), then don’t I qualify for both full amounts? $2900 and $1800? If that’s true then do I need to file an amended return to receive the credit for the $555.65 shortfall?

Re: Recovery Rebate Credit - My income went down in 2020.

MarilynG1 — Sat, 13 Mar 2021 04:00:37 GMT

Click this link for more info on the Recovery Rebate Credit. You can look at the Recovery Rebate Credit worksheet in your return to see the calculations.

You may not have received the full credit, as it phases out at 150K. Don't Amend your return.

Currently, the IRS is making corrections and issuing the correct amounts to taxpayers.

This link has more info on the Third Stimulus Payment.