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COVID-19 Economic Stimulus: Amount Received Less Than Authorized

I am married, filed jointly, with three children. I received incorrect amounts for the first and second rounds of the economic stimulus (equivalent to 1 less child). The third-round stimulus package was correct. 

How do I account for the incorrect amounts in the first two stimulus packages using TurboTax Premier to receive the Recovery Rebate Credit? 

The software won't prompt for the Recovery Rebate Credit and states the amount I received is correct; but, it's not. My 2019 taxes were also filed jointly and included three children using TurboTax Deluxe. All three of my children were born prior to 2019. 

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1 Best answer

Accepted Solutions

COVID-19 Economic Stimulus: Amount Received Less Than Authorized

Turbotax will automatically calculate the maximum rebate based on the information in your return.   In your case, that would be $3900 for round 1 and $2700 for round 2.  This will appear in the Federal Review section after entering your deductions and credits and before going to the state module.  You can force the program to go to that step by clicking on the Federal Review tab, or clicking on the Other Tax Situations tab and then clicking Done at the bottom.  You must then enter what you received, and the program will give you any additional amount you are entitled to.

 

Some important points.

1. This will not increase your refund on the "Refund meter".  Turbotax adds the full amount to the refund meter as soon as you enter enough information to qualify (income and dependents), and then the credit and refund go down when you tell the program what you already received.  This makes it look like the stimulus is reducing your rebate or being taxed, but it's just happening because the program added the rebate to the refund meter before asking whether you were really qualified. 

 

2. The rebate is not a separate payment, it is included in your overall calculation of tax owed or refund due.  It will be on line 30 of form 1040.  You can print your tax return after you pay your fees but before you actually transmit your return, to review the situation before you file.  If you need to make changes, you can go back and you won’t have to pay again when you are ready to transmit your return.  

 

3. You can go directly to the rebate question by clicking the tab for "Federal Review."  If you don't even get the rebate question, it may be that you checked the box for "someone else can claim me as a dependent" in the personal interview, that disqualifies you.

 

4. If you click "yes I got a stimulus payment" then you should see a screen where it tells you what Turbotax calculate you are eligible for.  If you are married filing jointly and your income is under $150,000, you should qualify for the amounts I indicated above.  If Turbotax has a lesser amount, then you entered something in your information that is not allowing the full amount.

  1. your income is too high and disqualifies you
  2. someone does not have a valid social security number
  3. someone's birth date is wrong
  4. you indicated that someone else will claim your child as a dependent this year

No one on this forum can see your return.  If you are still stuck you may want to call customer support and an operator can review your return with a screen share. 

View solution in original post

3 Replies
rjs
Level 15
Level 15

COVID-19 Economic Stimulus: Amount Received Less Than Authorized

Was one of your children 17 or older as of the end of 2020? You only get the first two stimulus payments for children under 17.

 

COVID-19 Economic Stimulus: Amount Received Less Than Authorized

No. All children are less than 17 years of age. 

COVID-19 Economic Stimulus: Amount Received Less Than Authorized

Turbotax will automatically calculate the maximum rebate based on the information in your return.   In your case, that would be $3900 for round 1 and $2700 for round 2.  This will appear in the Federal Review section after entering your deductions and credits and before going to the state module.  You can force the program to go to that step by clicking on the Federal Review tab, or clicking on the Other Tax Situations tab and then clicking Done at the bottom.  You must then enter what you received, and the program will give you any additional amount you are entitled to.

 

Some important points.

1. This will not increase your refund on the "Refund meter".  Turbotax adds the full amount to the refund meter as soon as you enter enough information to qualify (income and dependents), and then the credit and refund go down when you tell the program what you already received.  This makes it look like the stimulus is reducing your rebate or being taxed, but it's just happening because the program added the rebate to the refund meter before asking whether you were really qualified. 

 

2. The rebate is not a separate payment, it is included in your overall calculation of tax owed or refund due.  It will be on line 30 of form 1040.  You can print your tax return after you pay your fees but before you actually transmit your return, to review the situation before you file.  If you need to make changes, you can go back and you won’t have to pay again when you are ready to transmit your return.  

 

3. You can go directly to the rebate question by clicking the tab for "Federal Review."  If you don't even get the rebate question, it may be that you checked the box for "someone else can claim me as a dependent" in the personal interview, that disqualifies you.

 

4. If you click "yes I got a stimulus payment" then you should see a screen where it tells you what Turbotax calculate you are eligible for.  If you are married filing jointly and your income is under $150,000, you should qualify for the amounts I indicated above.  If Turbotax has a lesser amount, then you entered something in your information that is not allowing the full amount.

  1. your income is too high and disqualifies you
  2. someone does not have a valid social security number
  3. someone's birth date is wrong
  4. you indicated that someone else will claim your child as a dependent this year

No one on this forum can see your return.  If you are still stuck you may want to call customer support and an operator can review your return with a screen share. 

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