topic Recovery Rebate Tax Credit in Deductions & credits

Recovery Rebate Tax Credit

Yadhuna — Wed, 30 Dec 2020 07:24:28 GMT

Will I qualify for the recovery rebate tax credit if I’m going to be filing as a independent this year but was claimed as a dependent on the 2019 taxes? I didn’t receive a stimulus check in March.

Re: Recovery Rebate Tax Credit

ee-ea — Wed, 30 Dec 2020 07:59:24 GMT

You will get the stimulus when you file your 2020 return.

Re: Recovery Rebate Tax Credit

NCperson — Wed, 30 Dec 2020 11:12:19 GMT

yes, you'll be able to claim both stimulus on the 2020 tax return if you are eligible. Watch Line 30 of Form 1040 closely.

Re: Recovery Rebate Tax Credit

Hal_Al — Wed, 30 Dec 2020 13:16:10 GMT

Under the CARES Act, if you are claimed as a dependent on someone else’s return you cannot receive a stimulus check, in 2020. If you were claimed as a dependent for 2019, but will not be for 2020, you will most likely get it in 2021.

In regards to the stimulus payment, when you file your 2020 income tax return, you will be asked for information about the amount of the stimulus payment you received, and if it is less than you are entitled to, you will be given a credit on your 2020 tax return.

"In essence, the stimulus check acts as an advance of your 2020 income tax refund. This means when you prepare your 2020 income tax return, there will be a line to include the section 6428 credit (line 30 on the 2020 form 1040). The credit on your 2020 return is subtracted by any amount received as a stimulus check in 2020. If the amount you received as a stimulus check is less than the credit you are due, the difference will be included as part of your 2020 refund. If you have been overpaid by receiving the stimulus check, however, you will not be required to return any excess amount".

You must not only not be claimed by anybody; you must also not even be eligible to be claimed by anyone.

There are two types of dependents, "Qualifying Children"(QC) and standard ("Qualifying Relative" in IRS parlance even though they don't have to actually be related). There is no income limit for a QC but there is an age limit, student status, a relationship test and residence test. Only a QC qualifies a taxpayer for the Earned Income Credit and the Child Tax Credit. They are interrelated but the rules are different for each.

See full rules at: https://turbotax.intuit.com/tax-tools/tax-tips/Family/Rules-for-Claiming-a-Dependent-on-Your-Tax-Ret...

Re: Recovery Rebate Tax Credit

Yadhuna — Wed, 30 Dec 2020 15:09:36 GMT

Thank you so much for the reply how do I find this credit on the turbo tax app?

Re: Recovery Rebate Tax Credit

Yadhuna — Wed, 30 Dec 2020 15:09:55 GMT

Thank you so much for the reply how do I find this credit on the turbo tax app?

Re: Recovery Rebate Tax Credit

NCperson — Wed, 30 Dec 2020 15:24:39 GMT

the recovery rebate tax credit (stimulus) is at the very end of the interview process

I would not be in a hurry to complete your tax return as I suspect this section will have to be re-tooled to accommodate the 2nd stimulus that was authorized earlier this week

Re: Recovery Rebate Tax Credit

skyyblue — Wed, 06 Jan 2021 02:50:08 GMT

I just checked to see if the recovery rebate credit is on Turbo Tax by going through my entire tax return. The question is there. I said no to receiving it because it looks like I'm going to be one of the 14 million people that has to get the 2nd economic relief payment through filing my taxes. They are shorting the second payment by $100 by doing it through taxes. I'm just happy the option is there 😄

Re: Recovery Rebate Tax Credit

NCperson — Wed, 06 Jan 2021 03:02:57 GMT

did it ask you for how much you received for each stimulus payment...or was there only one question?

I wasn't aware that it is working for the 2nd stimulus payment yet, so that may explain the $100 difference - it is calculating based on $500 and you are thinking $600.

Re: Recovery Rebate Tax Credit

skyyblue — Wed, 06 Jan 2021 03:14:11 GMT

Good point. It was only one question. I have two kids and myself so if it didn't count one of my kids then the first stimulus payment would apply which would be $1200 + 500. I'm definitely not submitting my taxes until after the 15th when I will know for sure if I am getting it or not and if they change the questions about the recovery check.

Re: Recovery Rebate Tax Credit

NCperson — Wed, 06 Jan 2021 03:28:48 GMT

so put in the 1st payment only for the time being and it should show if you are due any more only considering the 1st stimulus so if both children are under 17 in 2020, then you are eligible for $2200 less what you actually received is what should be on Line 30.... again we need to wait for the software to update to deal with stimulus #2

Re: Recovery Rebate Tax Credit

skyyblue — Wed, 06 Jan 2021 03:33:45 GMT

Agreed

Re: Recovery Rebate Tax Credit

lililuyi — Wed, 06 Jan 2021 21:44:31 GMT

Ya I'm confused. I started filing my 2020 return and it asked if I received a stimulus check. I said no, and it estimated a total refund of $1200 (the amount from the first stimulus). Will it add in the $600 too? Because I am entitled to both which I have not received.

Re: Recovery Rebate Tax Credit

NCperson — Wed, 06 Jan 2021 21:59:10 GMT

you are fine. the software has yet to be updated to reflect the 2nd payment. Just be sure that Line 30 of Form 1040 has the correct amount before your file. You can't file before the end of January in any event and TT tends to update it's software every Wednesday night overnight.

Re: Recovery Rebate Tax Credit

lililuyi — Wed, 06 Jan 2021 22:12:26 GMT

Will the refund total update automatically to the full $1800 when the system updates, or do I need to manually do something?

Re: Recovery Rebate Tax Credit

scottmfoil — Thu, 07 Jan 2021 22:29:58 GMT

I filled out my return already, but the recovery amount, at this point in time (1-5-21), is only the amount of the 1st stimulus

The threshold is not the full amount of of the first and the second stimulus.

Is turbotax going to adjust the allotted recovery amount amount based on:

A. 2019 taxes?

B. Total amount of 1st and 2nd stimulus?

Right now, it's only the amount of what I received on the 1st stimulus.

Any information turbotax?

Re: Recovery Rebate Tax Credit

scottmfoil — Thu, 07 Jan 2021 22:31:08 GMT

Good answer! I imagine so too.

Re: Recovery Rebate Tax Credit

scottmfoil — Thu, 07 Jan 2021 22:32:43 GMT

I don't think the total amount from 1 and 2 are there. It's just the total from the 1st as of now.

Re: Recovery Rebate Tax Credit

DoninGA — Thu, 07 Jan 2021 22:34:04 GMT

@scottmfoil wrote:

I don't think the total amount from 1 and 2 are there. It's just the total from the 1st as of now.

The TurboTax online editions have been updated to include EIP1 and EIP2

Re: Recovery Rebate Tax Credit

NCperson — Thu, 07 Jan 2021 22:37:54 GMT

@scottmfoil - you may have to log out and then log back in - they just updated it this afternoon