topic Re: Recovery Rebate Credit in Get your taxes done using TurboTax

Recovery Rebate Credit

symonds5 — Wed, 24 Mar 2021 00:26:05 GMT

I have not received my 1st and 2nd stimulus checks. I applied for my Recovery Rebate Credit when preparing my 2020 income taxes and since I also owe self employment taxes for 2020, this credit is being used to pay these taxes. I thought this money could not be used to pay back income taxes owed?? Is there a way that I can still get this money? Most people got their money before filing taxes and the fact you owe taxes was not part of the calculation.

Re: Recovery Rebate Credit

MaryK4 — Wed, 24 Mar 2021 00:45:19 GMT

The Recovery Rebate Credit is first applied ti your 2020 taxes so it is not "back taxes" but current year employment taxes. Unfortunately, there is no way to get the amount paid back. If you had received the stimulus checks in 2020, you would have to pay the self-employment taxes now.

Re: Recovery Rebate Credit

symonds5 — Wed, 24 Mar 2021 00:52:02 GMT

Ok but most people got their first and second stimulus checks in 2019 and their 2020 taxes were not a consideration. For whatever reason (I do not know why) I have not received this money and now it is being taken from me for my 2020 taxes. Does this seem fair?

Re: Recovery Rebate Credit

ReneeM7122 — Wed, 24 Mar 2021 17:27:21 GMT

People who received advanced stimulus payments would owe more if they have a tax balance than those who have an unpaid stimulus.

It's also possible that the IRS may be on a backlog and you still may receive a payment.

You can use the free TurboTax Stimulus Registration product to easily provide the IRS with the information they need to calculate and send your stimulus payment.

In January 2020, during the distribution of the second round of stimulus payments, an IRS error caused delays in the distribution of some stimulus payments. In an effort to do all that we could to help these customers get the funds they deserved as quickly as possible, we were able to create a secure portal used to update banking information.

Here is what you should expect when you provide information in the secure portal:

If you filed your 2020 tax return and it has been processed by the IRS, your stimulus will be sent to the account you provided in that return.
If you provided updated banking information via the TurboTax Stimulus Portal for the second stimulus, that information was given to the IRS so they could deposit a third stimulus payment in that account.
If a bank account the IRS has on file is closed and your bank rejects the payment, the IRS will either:
Deposit your stimulus check into the bank account you entered into the TurboTax portal, or
Send your stimulus by check to the address they have on file for you within 14 days.

If this applies to you, you can get updated information on how you can expect to receive your stimulus payment. If the IRS reissues a payment, they will update the status no more than once a day at: IRS Get My Payment

@symonds5