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ModusOperandi
Level 2

$1200 stimulus

When I file my taxes on 1040 form through turbotax I answered that I had received the $1200 stimulus.  I had the same income as 2019 and not in a different tax bracket and no different tax situation. 

Just for the sake of example I'm saying my return was $2000. Having stated I received the 1200 stimulus. 

I then went back and said I did not receive the 1200 and my return became 3200. 

Every article I could find about this since it was given out has said that receiving the stimulus would not reduce your return. 

What am I missing?

 

In this case it seems the 1200 was just an advance on your 2020 tax return. 

 

1 Best answer

Accepted Solutions
DawnC
Expert Alumni

$1200 stimulus

No, tax rates did not change in 2020.   Your tax liability is only part of the equation when figuring any refund amounts.   Your tax liability may have been the same in 2020 as it was in 2019 - However, that does not mean your withholdings and tax credits were the same as the previous year.   Look at your tax summary or 2 year comparison if you have one if you really want to see how things changed for you and her year to year.  

 

The amount your are eligible to receive is not factored into your tax liability.   You qualify for x amount and you get that amount as a tax credit in 2020.   If you already received the stimulus payments, you don't get to take the credit.   But if you did not get the payments, you get to take the credit.    

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7 Replies
ErnieS0
Expert Alumni

$1200 stimulus

If you did not receive the full stimulus amount, then the missing amount will be added to your return.

 

In your example, you are getting an income tax refund of $2,000. If you received a $1,200 stimulus, then nothing more will be added to your return.

 

If you said you did not receive the stimulus, then the missing $1,200 payment will be added to your return as a Recovery Rebate Credit and your return would be $3,200 ($2,000 tax refund + $1,200 missing stimulus payment).

 

Your Recovery Rebate Credit will show up on line 30 of Form 1040.

 

The stimulus payments were advanced payments for 2020. Since the IRS did not have 2020 information, the Service used 2018 and 2019 tax information with the understanding that any missing payments would be added to your 2020 tax return.

ModusOperandi
Level 2

$1200 stimulus

Thank you for your reply!  I believe I understand what you have said however I'd like to confirm with you what I think I understand. 

 

The 1200 stimulus that I received was an advance on my anticipated 2020 tax refund, correct?

 

Additionally, the 1200 is not money that the government is giving me that is separate from the tax return I was expecting in the first place but rather just an early payment towards the tax return I was expected to get from my 2020 tax return?

 

Thanks again!

 

Mo

ErnieS0
Expert Alumni

$1200 stimulus

No. The $1,200 is not an advance on your tax refund. It was a separate payment the government made in 2020 due to the coronavirus pandemic. Most people received the $1,200 last year by check or direct deposit. Those who did not will get the money added to their tax return.

 

The $1,200 will not increase or decrease your tax refund either way. But it will change the amount of money the IRS will give you when you file your taxes.

 

If you got the $1,200 stimulus payment last year, then it’s not included in your total return. If you did not get a check or direct deposit last year, then an extra $1,200 is included in the money you will get when you file taxes.

ModusOperandi
Level 2

$1200 stimulus

Thank you again! 

 

However I may be more confused now. 

In my other half situation here income didn't change her tax liability compared to 2019 yet she received 1200 less as her tax return for 2020. She did receive the 1200 stimulus. 

So does that imply or indicate that her tax obligation just happened to be 1200 more for 2020 because of a change in tax rates from 2019 compared to 2020. 

On other words did taxes go up in 2020?

DawnC
Expert Alumni

$1200 stimulus

No, tax rates did not change in 2020.   Your tax liability is only part of the equation when figuring any refund amounts.   Your tax liability may have been the same in 2020 as it was in 2019 - However, that does not mean your withholdings and tax credits were the same as the previous year.   Look at your tax summary or 2 year comparison if you have one if you really want to see how things changed for you and her year to year.  

 

The amount your are eligible to receive is not factored into your tax liability.   You qualify for x amount and you get that amount as a tax credit in 2020.   If you already received the stimulus payments, you don't get to take the credit.   But if you did not get the payments, you get to take the credit.    

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campbellkerrysbcglobalnet
New Member

$1200 stimulus

I now, understand the 2020 Stimulus is considered as an advance on my refund.  However, I DID NOT receive $1200. I only received $600.  What do I need to do to receive the $600. 00 balance of my refund??????

gloriah5200
Expert Alumni

$1200 stimulus

On your 2020 return in the section for the Recovery Rebate Credit, you will state the amount received in your check in 2019 and then the amount received in your check in 2020.  Based on your exact situation on the 2020 return filed, it will either not give you an additional amount or if you are entitled to an additional amount, it will give it to you by adding it to the refund amount on your return.

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