The stimulus check is an advance on a credit you can receive on your 2020 tax return. If something went wrong or you did not get the stimulus check in 2020, you can get it when you file your 2020 return in early 2021
The Recovery Rebate Credit will be found in the FEDERAL REVIEW section. ( you should see "Let's make sure you got the right stimulus amount”) If you are eligible it will end up on line 30 of your 2020 Form 1040.
Make sure that you enter ALL of the stimulus money received for the 1st and 2nd stimulus for yourself, your spouse and your children.
https://ttlc.intuit.com/questions/1901539-how-do-i-preview-my-turbotax-online-return-before-filing
Click on Tax Tools on the left side of the screen. Click on Tools. Click on View Tax Summary. Click on Preview my 1040 on the left side of the screen.
In fact, Turbotax will automatically add the credit if you qualify based on your income, and then in the Review Section you will be asked to remove it if you already received a stimulus check. So you should not have to do anything specific, just follow the program in order and you will get there.
Turbo Tax 2020 looks at your income in 2020 vs 2019 to see if you qualify for the recovery credit. That is an error in the program. My income went up in 2020 over the threshold but was not in 2019. Now I have to do manually on the form
@philipwfoster wrote:
Turbo Tax 2020 looks at your income in 2020 vs 2019 to see if you qualify for the recovery credit. That is an error in the program. My income went up in 2020 over the threshold but was not in 2019. Now I have to do manually on the form
There is no error. The Recovery Rebate Credit is based on your 2020 tax return, 2020 filing status and 2020 AGI.
IRS website - https://www.irs.gov/newsroom/recovery-rebate-credit-topic-b-eligibility
The eligibility requirements are the same for the Recovery Rebate Credit as they were for the Economic Impact Payments except that the credit eligibility and the credit amount are based on your 2020 tax year information. The Economic Impact Payments were based on your 2018 or 2019 tax year information.
This is not an error.
The payments were an advance credit for 2020. 2019 information was used in determining the payments since 2020 tax returns had not been filed at the point the stimulus payments were sent out. They are being reconciled when you do your 2020 return. In some cases, people may have been given a stimulus payment based on their 2019 income that did not qualify based on their 2020 income. In these cases they are not required to return the stimulus, however they are ineligible for the Recovery Rebate Credit.
Second stimulus check based on 2019 income ( it was issued late 2020 so could not be based on 2020 income). Turbo Tax program wrong as uses your 2020 income which is on your return filed by May 15, 2021.
Users need to do this manually to fix it
@philipwfoster - I agree with others...
EVERYTHING is based on your 2020 return (income, filing status and children under the age of 17) LESS what you already received. The result, but not less than zero, appears on Line 30.
That is the way the law was passed.
The IRS simply used 2019 tax return (or 2018) to ESTIMATE what you were due since they obviously did not have the 2020 data yet at the time the 1st two stimulus payments were sent out.
@philipwfoster wrote:
Second stimulus check based on 2019 income ( it was issued late 2020 so could not be based on 2020 income). Turbo Tax program wrong as uses your 2020 income which is on your return filed by May 15, 2021.
Users need to do this manually to fix it
The TurboTax software is correct as it uses the IRS Recovery Rebate Credit Worksheet from the IRS Form 1040 Instructions for tax year 2020. The Recovery Rebate Credit is based on the 2020 federal tax return, 2020 filing status and the 2020 AGI.
IRS website - https://www.irs.gov/newsroom/recovery-rebate-credit-topic-b-eligibility
The eligibility requirements are the same for the Recovery Rebate Credit as they were for the Economic Impact Payments except that the credit eligibility and the credit amount are based on your 2020 tax year information. The Economic Impact Payments were based on your 2018 or 2019 tax year information.
@philipwfoster - as further proof that TT is correct, look on page 59 and work your way through the official IRS worksheet, which is EXACTLY how TT is calculating this. You will further note there is no mention on this worksheet of 2018 or 2019 tax return - only 2020.
https://www.irs.gov/pub/irs-pdf/i1040gi.pdf