Economic Rebate Recovery Credit

[BMA1]

Hi All -  

My husband and I file a joint return.  We did not receive the full $2400 first stimulus check (which they based off out 2018 ax return) and id not receive the second $1200 at all (as the IRS was "processing: our 2019 tax return - for a FULL YEAR - just got the 2019 refund we were due) - ANYWAY...the IRS in one of the many phone conversations I had with them said that we did, indeed, qualify for the second stimulus payment and that I should put the $1200 on line 30 on the Form 1040.  Well.....TurboTax is not allowing me to do this - they are basing the recovery rebate on 2020 adjusted gross income which makes us ineligible.  How can they do that when the SECOND payment was based on the 2019 tax return?  Is anyone else having that problem?  I'm a little ticked off since the IRS held my return "due to COVID" (but my return was electronically filed n February) - Anyway.....how is this problem fixed?  That credit is the difference between me owing federal taxes and getting a refund (since I did deserve the stimulus payment in the first place) - Any advice???

[Bsch4477]

The stimulus payments were an advanced credit based on your 2020 tax return. Since no one had done a 2020 return because 2020 had not ended the IRS had to look at 2018 or 2019 returns.  On the 2020 return the stimulus is reconciled and you get whatever stimulus you are entitled to based on that return. 

[xmasbaby0]

You misunderstood the eligibility criteria.   The stimulus checks were an advance credit based on your 2020 income tax return.   When they sent checks out last year they had to hurry so they used 2018 or 2019 returns and hustled those checks out.   If you really do not qualify based on your 2020 income they do not make you pay back the money, but if your 2020 income is too high, they do not go  backwards and use your 2019 income.  So, sorry, if your 2020 income was too high  then you just do not get the 2nd stimulus amount or perhaps you get a phased out lower amount.   

Per the IRS rules of eligibility:

A1. Generally, if you are a U.S. citizen or U.S. resident alien, you will receive an Economic Impact Payment of $1,200  ($2,400  for a joint return) if you (and your spouse if filing a joint return)  are not a dependent of another taxpayer and have a Social Security number valid for employment and your adjusted gross income (AGI) does not exceed:

• $150,000  if married and filing a joint return
• $112,500 if filing as  head of household or
• $75,000  for eligible individuals using any other filing status
  Your payment will be reduced by 5% of  the amount by which your AGI exceeds the applicable threshold above.

You are not eligible for a payment if any of the following apply to you:

• You may be claimed as a dependent on another taxpayer’s return (for example, a child or student who may be claimed on a parent’s return or a dependent parent who may be claimed on an adult child’s return).
• You do not have a Social Security number that is valid for employment.
• You are a nonresident alien.
  The following are also not eligible: a deceased individual or an estate or trust.

The criteria for the 3rd stimulus is a little different:

https://ttlc.intuit.com/community/tax-topics/help/how-will-the-stimulus-package-impact-me/01/1393859...

[BMA1]

Well this certainly was not the news I wanted to hear.  I was so frustrated with the IRS holding our return for the whole year anyway, but when the agent told me that I just needed to put the $1,200 as a rebate credit, I at least thought I would get it.  Oh well - bummer for me.  Burns me up a little that the IRS held my return so I lose out.  Thanks so much for your responses though.