topic Stimulus Payments credits in Deductions & credits

Stimulus Payments credits

cfw1 — Thu, 01 Apr 2021 16:47:14 GMT

The first round stimulus payment I received was less than the maximum based n my 2019 income. Turbotax suggests the difference in the amount I received and maximin should be added in as a tax credit based on my 2020 income. Is this correct?

I have not received the second stimulus payment. What happens if I received the second stimulus paymen from the IRS in addition to credit claimed in my 2020 tax filings

Re: Stimulus Payments credits

MinhT1 — Thu, 01 Apr 2021 17:02:13 GMT

The stimulus payments are based on your 2020 Adjusted Gross Income (AGI). If this AGI qualifies you for a higher amount than what you have already received, you can claim the difference as the Recovery rebate credit on your 2020 tax return (line 30 of your form 1040).

For the second stimulus, if you made a mistake in reporting the amount of stimulus received, the IRS will identify the error and adjust your refund.

Please read the answer to question D2 of this IRS Q & A and this TurboTax Help topic.

Re: Stimulus Payments credits

NCperson — Thu, 01 Apr 2021 17:22:46 GMT

if you haven't receive the 2nd stimulus by now, you won't. The IRS stopping sending them out, by law, back in January to prevent exactly the situation you are asking about.

the way the stimulus works is as follows

1) the IRS ESTIMATED what you were due based on your 2019 tax return (or 2018 if that wasn't available)

2) the IRS determined what you were ACTUALLY due based on your 2020 tax return.

You are eligible for the greater of the two.

if the ACTUAL is greater than the ESTIMATE, it will appear on Line 30

if the ESTIMATE is greater than the ACTUAL, Line 30 will be zero and you do not owe anything back. LIne 30 can not be negative.

so if your 2019 income was high and you didn't receive the full stimulus, but your 2020 income is low, then you would receive the stimulus difference on Line 30 as a 'Recovery Credit" . so your question if TT is correct, is 'Yes, it is correct'.

does that help?