Nowhere to input recovery rebate credit

[wlzhangking]

A few issues with TT for helps, really appreciate: 

1: No 2019 tax record shown, I used TT to prepare 2019 tax but not throught E-file, print and mailed, TT could detect my 2019 tax result but not sure why all import '0'. how to import 2019 result, It can only remember after E-file? 

2: I received 1st stimulus payment based on 2018 tax result, but never the 2nd and 3rd, maybe due to IRS late process of my 2019 tax, try to claim the 2nd and 3rd stimulus credit, but after input all the info of 2020 tax, never show me where to request 2nd and 3rd stimulus payment. 

Tried to search 'stimulus' and click the 'go to'link, but it doesn't work, never lead me to recovery rebate credit page. Does it because it could not find my 2019 tax result? How do i inport my 2019 tax result?   PS: my income of 2020 is higher than 2019,  but i should be eligible to receive the stimulus if based on 2019 result. Suppose 2nd stimulus is based on 2019 tax result, right?

[wlzhangking]

I opened recovery rebate credit worksheet and find all the fillings are empty from item 5 to 21,  only item 1 and 2 has then cross mark.  

how can i input them?  The stimulus ' go to ' link doesn't work, still show me the federal tax review page...

[NCperson]

@wlzhangking - go the the federal review section and it will ask for the amount of the 1st two stimulus payments.  Once you enter those two numbers any further amount you are due will be on Line 30 of Form 1040.

The 3rd stimulus payment will be reconciled on NEXT YEARs tax return so you will not see it on the 2020 tax return. The IRS is still sending out the 3rd stimulus so if you don't receive it, you will (assuming you are eligble) on your 2021 tax return.

The Recovery Credit for the 1st two stimulus payments is based on your 2020 tax return - your income from a prior year just does not matter.  What you earned in 2019 doesn't matter, what matters is what your earned in 2020   

post back if further questions.

[wlzhangking]

I already received 1st stimulus payment, it is based on my 2018 tax return when 2019 tax return was not processed by then.

As I discussed with IRS agent, the 2nd payment calculation is based on 2019 tax return, and i didn't receive it due to late 2019 tax process.  The IRS agent said when i file 2020 tax return, the tax software is still based on 2019 tax result, not 2020 tax. The IRS website also state that 2nd stimulus payment is based on 2019 tax return, how you get the info that 2nd payment is based on 2020 tax?

The 3rd payment is also based on 2019 return when 2020 is not filed yet. It seems the TT software doesn't take the right calculation base, it should take 2019 tax result based on policy from IRS, instead of 2020., right? 

[NCperson]

@wlzhangking - it doesn[t work like that - and is confusing..... here is how it works: 

• these payments are advances on the 2020 tax return. What that means is Congress authorized the IRS to pay some of your 2020 taxes that is why Line 30 is in the 'payment section' of your tax return
• but the problem was that no one would know what their income, filing status and dependents were at the time the law was passed because 2020 hadn't ended yet. 
• So the law stated that the IRS was to use the 2019 tax return (and if that wasn't available 2018) to determine the payments. These are the EIPs.  But this was an ESTIMATE since 2020 wasn't available. this ESTIMATE is what you received as the stimulus payment!
• Now we get to the 2020 tax return and the ACTUAL income, dependents and filing status is available to calculate the ACTUAL amount you are due.
• if that ACTUAL is greater than the ESTIMATE the difference is the Recovery Credit on Line 30.
• if that ESTIMATE is greater than the ACTUAL, then Line 30 is zero and you are not required to return any of the excess.

Take your 2020 income, dependents and filing status and determine your Recovery Credit, subtract what you received so far.  You get $1800 for each spouse and $100 for each child under the age of 17 as of 12/31/20; it is that simple if there is no income limitation. THAT is what is on line 30

If your 2020 income is high enough that you are ineligible, even if your 2019 income was low enough that you were eligible, it does not matter.  Read the bullets above; 2020 income is what matters. This could be why you don't see the Recovery Credits; if TT knows your income is too high, it will not present this to you; artificially and temporarily lower your income below the limit and you will see the appropriate screens.

don't worry about the 3rd stimulus payment - that gets reconciled in 2021.  You will either get a check from thr IRS after filing 2020 or it will be a credit on the 2021 tax return

please read this over again; it is the way it works.

[wlzhangking]

Thanks a lot for your elaboration. Though that is not exact same as what IRS agent told me. TT should enable the option to let user to determin the calculation base on 2019 tax or 2020 tax to be fair enough. Otherwise some people get the payment based on 2019 tax, while some people get stimulus based on 2020 tax, that is not fair calculation. 

[NCperson]

<<TT should enable the option to let user to determin the calculation base on 2019 tax or 2020 tax to be fair enough. Otherwise some people get the payment based on 2019 tax, while some people get stimulus based on 2020 tax, that is not fair calculation. >>

While I appreciate your issue of 'fairness',  Congress didn't pass a law that permitted taxpayers to choose which year to based the Recovery Credit on.