topic Recovery Rebate Credit Wrong in Deductions & credits

Recovery Rebate Credit Wrong

alex002 — Thu, 18 Mar 2021 07:53:06 GMT

Hi,

I have filed my tax return with Turbotax, it did calculate total $1800 credit for me. But I think this should be the wrong amount.

AGI: 132K

Married filling jointly

1 dependent child.

did not get any stimulus check ($0)

I thought I should have $4200 total amount but Turbotax calculated $1800 credit. why?

Re: Recovery Rebate Credit Wrong

xmasbaby0 — Thu, 18 Mar 2021 13:24:05 GMT

We cannot see your information or know how much --if any ---stimulus you received in 2020 or early 2021. Make sure you are entering the amounts you already received--including anything received for your spouse and child. The RRC should be on line 30 of your Form 1040, and then it adds to your refund which is shown on line 34.

If you received NO stimulus money at all, then for a MFJ return the 1st amount with a child under the age of 17 should be $2900, and the 2nd amount should be $1800. Total $4700

Re: Recovery Rebate Credit Wrong

DianeW777 — Thu, 18 Mar 2021 13:52:40 GMT

You are correct on the total amount for the third stimulus payment.

The first round of payments for the third stimulus is not the full amount. The IRS will continue to send payments and process returns at the same time. They are behind and also follow the instruction they have been given. Continue to watch for the rest of your third stimulus payments.

In total based on your situation you should have received or will receive the following amounts.

EIP1: You should have received $2,400 for the first stimulus payment and $500 for your child IRS EIP1 page.
EIP2: You should have received $1,200 for the second stimulus payment and $600 for your child. IRS EIP2 page
EIP3: You should receive in total $2800 for the third stimulus payment and $1,400 for your child. IRS EIP3 page

Re: Recovery Rebate Credit Wrong

alex002 — Thu, 18 Mar 2021 16:26:58 GMT

I did not receive any stimulus check. I have entered $0 for the first round and second round, but Turbotax calculated $1800 as credit. But this is wrong. it should be $4900. My child is 5 years old.

Re: Recovery Rebate Credit Wrong

JamesG1 — Thu, 18 Mar 2021 17:07:09 GMT

Does everyone on the tax return report a Social Security number?

The TurboTax software adds together the entries that you made for receiving stimulus check 1 and stimulus check 2. Then the software computes the amount of your stimulus check amounts based upon the information that has been entered into the tax software.

If you are due an additional amount, it will be issued as a Recovery Rebate Credit (RRC) on line 30 of the 2020 1040 tax return.

If you believe that the Recovery Rebate Credit (RRC) on line 30 of the 2020 1040 tax return is not correct, then you should:

Check the amounts entered for stimulus check 1 and stimulus check 2, and
Make sure that you have correctly entered your dependent information.

If there is a difference, it is in one or both of these situations.

In TurboTax Online, you are prompted to input stimulus check 1 and stimulus check 2 information under Review down the left hand side of the screen. You may also access your stimulus check choices by following these steps:

Down the left side of the screen, click on Federal.
Across the top of the screen, click on Other Tax Situations.
At the screen Let’s keep going to wrap up. Click on Let’s keep going.
At the screen Let’s make sure you got the right stimulus amount, click Continue.
At the screen Did you get a stimulus payment? you can update your stimulus check entries.

The child must be reported as a qualifying child. This IRS FAQ states:

Who is considered a qualifying child?

A qualifying child is a child who meets the following conditions:

Relationship to the individual who’s eligible for the payment: The child is your son, daughter, stepchild, eligible foster child, brother, sister, stepbrother, stepsister, half-brother, half-sister, or a descendant of any of them (for example, grandchild, niece, or nephew).
Child's age: The child was under age 17 on December 31, 2019.
Dependent of the individual who's eligible for the payment: The child was claimed as your dependent on your 2019 tax return or in the Non-Filers: Enter Payment Info Here tool.
Child's citizenship: The child’s a U.S. citizen, U.S. national, or U.S. resident alien.
Child's residency: The child lived with you for more than half of 2019.
Support for child: The child didn’t provide over half of their own support for 2019.
Child's tax return: The child doesn’t file a joint return for the year (or files it only to claim a refund of withheld income tax or estimated tax paid).

First stimulus payment states:

Eligible individuals who file a joint tax return generally received up to $2,400 for themselves. All other eligible individuals received up to $1,200 for themselves. Those with qualifying children received up to an additional $500 per qualifying child.

Second stimulus payment states:

Eligible individuals who filed a 2019 joint tax return will receive up to $1,200, and all other eligible individuals will receive up to $600. Those with qualifying children on their 2019 tax return will receive up to $600 in additional payment per qualifying child.

Re: Recovery Rebate Credit Wrong

alex002 — Thu, 18 Mar 2021 17:10:41 GMT

My wife and My Child have a Tax Identification Number.

Re: Recovery Rebate Credit Wrong

PattiF — Thu, 18 Mar 2021 17:20:57 GMT

A Social Security number is required to claim the credit.

Re: Recovery Rebate Credit Wrong

alex002 — Thu, 18 Mar 2021 17:48:13 GMT

I did not know that. But My child is 6 - I can not get an SSN for her as I am working here with an E2 visa.

By the way, I have already filed my tax return. If I apply SSN for my wife. Shall I amend the tax return?

What do you suggest for my child?

Re: Recovery Rebate Credit Wrong

ReneeM7122 — Thu, 18 Mar 2021 18:03:52 GMT

Yes, you can amend your tax return after your wife gets an SSN.

Re: Recovery Rebate Credit Wrong

alex002 — Thu, 18 Mar 2021 18:12:25 GMT

Can I get SSN for my child? She was not born in the USA.

Re: Recovery Rebate Credit Wrong

ReneeM7122 — Thu, 18 Mar 2021 18:29:25 GMT

Here is a link that explains how to apply for an ITIN

Here is a link about how to apply for an SSN.

Re: Recovery Rebate Credit Wrong

HateTaxTime — Thu, 01 Apr 2021 06:09:03 GMT

So did this get corrected and if so, how? I am having the same problem.

Re: Recovery Rebate Credit Wrong

alex002 — Thu, 01 Apr 2021 06:56:30 GMT

I am trying to get SSN for my wife. Then I will amend my 2020 Tax Return. Let's see whether I can get additional stimulus check for my wife

Re: Recovery Rebate Credit Wrong

nareshguddeti — Sat, 23 Oct 2021 19:02:59 GMT

Hi Alex,

I am also in the same situation. Have you filed an amendment after your wife got SSN and you received Recovery Rebate Credit ?

Thanks,

Naresh

Re: Recovery Rebate Credit Wrong

nareshguddeti — Sat, 23 Oct 2021 19:08:01 GMT

Hi Renee,

How to amend tax returns to update my wife's SSN.

Could you please help me with some resources.

Thanks,

Naresh