2020 Tax Return Stimulus Reporting Problem

Forum|Forum|5 years ago
February 15, 2021
10 replies
29 views

I have 2020 Turbotax deluxe. I've used Turbotax for many years. I found a problem with the software which the phone-in support people for the Deluxe version could not address. They said I would need to upgrade to the Premier version ($30 more). The problem I found was that the stimulus amount Turbotax showed I was entitled to is much more than I was entitled to. I did get a reduced stimulus payment which was based on my 2018 return. This was allowed by the IRS. If I used my 2019 return I would not been qualified for any stimulus. Turbotax asked the question did I receive these amounts. Option was to select "Yes" or "No". To be correct I need to answer "No" which results in a substantial credit on my return. If I were to answer "Yes" the return would be correct refund wise but I'm concerned that this my cause an issue with the IRS. To me there should be a question if the stimulus amount shown is what you are entitled to - "Yes" or "No" (then with some explanation of the qualifying criteria). I have purchased the upgrade since I think this is an important issue that should be corrected. Maybe I'm wrong?

Best answer by KrisD15

You may be reading more into this that you should.

The stimulus was/is based on tax year 2020, however only additional stimulus (payments not received) will be credited on the 2020 tax year return, NO ONE IS REQUIRED TO PAY BACK STIMULUS THEY RECEIVED THAT IS OVER WHAT THEY SHOULD HAVE RECEIVED.

When you use TurboTax, please enter the total amount of stimulus payments you have received. If you are entitled to more, that will be credited on line 30.

ErnieS0

Level 15

You do not need to upgrade to Premier for stimulus payments.

For you return to be correct, enter the actual payment amounts you received last year. If you qualify for a full stimulus based on your 2020 tax information, then you are entitled to the difference. The IRS sent out the payments. They have a record of what they gave you.

The stimulus payments were advanced payments for 2020. Your correct stimulus amount is based on your actual 2020 income, not your 2018 or 2019 income.

The IRS did not have 2020 information when it sent out payments, so the Service used 2018 and 2019 tax information with the understanding that your payments would be trued up on your 2020 return.

In your case, it sounds like the IRS used your 2018 tax return information to send out your payments because it did not have your 2019 info. If your 2020 income put you under the full stimulus thresholds then you are entitled to the difference.

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