My daughter was born in second half of 2019 and when I filled my tax last year I accidentally entered less than 6 months in the dependent section. I should have selected the whole year option since the was born in 2019. I received $500(other dependent) as tax credit instead of $2000(child tax credit). This has repercussions everywhere with both my first stimulus check and second stimulus check all receiving no credit for the child.
Should I have to amend my 2019 return before applying to the recovery rebate credit in 2020 tax return?
to get the tax credits back, AMEND the 2019 tax return
to get the stimulus, it'll rectify itself on the 2020 tax return , here is why:
The way this REALLY works is EVERYTHING is based on you 2020 income, filing status and number of children under the age of 17 on your 2020 tax return. What these numbers were in 2018 and 2019 does not matter.
The IRS will calculate your stimulus based on 2020 numbers; that is what is considered the ACTUAL.
The two payments were just ESTIMATES; the 1st stimulus was an estimate based on either the 2018 or 2019 tax return, using whatever was available.. the 2nd stimulus was an estimate based on the 2019 tax return only
if the ACTUAL is greater than the ESTIMATE, you will receive that amount as a credit on your 2020 tax return.
if the ESTIMATE is greater than the ACTUAL, you are not required to return the money nor does it impact your refund. Line 30 on Form 1040 will be zero.
does that help?
p.s. don't feel bad, responding that a newborn lived with you the number of months since birth and not 'the whole year' is the #1 mistake folks make entering a newborn; it doesn't really matter if you put in 7-12, but if you put in 1-6, that is where the trouble begins.....
Of course the program tries to help by giving you the correct answer but some folks don't seem to read the warning ... for future reference please read all the words on the page even if you think you know the answer.