topic Incorrect first stimulus payment? in Deductions & credits

Incorrect first stimulus payment?

scorp1227 — Fri, 26 Feb 2021 00:50:34 GMT

My wife and I had a child in July of 2019. We have 7 children. In 2019 my oldest was 19 and was not eligible for the stimulus calculation. My next oldest was 16 and would be eligible as would the rest of the younger siblings. We received $4900 for the first stimulus. That's $1200 for my wife and myself, and $500 for 5 of my children. We did not receive a payment for my oldest or youngest. My understanding was that I would be able to claim my a recovery for my youngest child with my 2020 taxes. TurboTax is not giving me this option. Am I mistaken?

Re: Incorrect first stimulus payment?

VolvoGirl — Fri, 26 Feb 2021 01:01:33 GMT

Did your 16 year old turn 17 in 2020? They have to be under 17 on Dec. 31, 2020. So you lost a dependent and added a new one. Your stimulus check is based on the number of qualifying people listed on your tax return for 2020. You don't receive a check for the new baby necessarily, it is just based on the number of qualifying people listed on your return.

So, if you lost one qualifying person because they turned 17 and replaced that person with a new baby, you still just have one qualifying person.

Hope that makes sense.

Re: Incorrect first stimulus payment?

JoannaB2 — Fri, 26 Feb 2021 01:16:40 GMT

The amount of recovery credit that will display on the form depends on the number of dependents under 17 plus the taxpayer's. You can reconcile the amount by entering the actual amount on the line that asked "How much was the first stimulus payment received?". On the next line of the Recovery Rebate Form "How much was the second stimulus payment received"., enter zero , if you didn't receive it, otherwise enter the actual amount. At the bottom of the Recovery Rebate form, it will display the amount of available credit for you, if any.