I don't think this worksheet works correctly for joint filers with incomes above $150K, which is the point where the "phaseout" begins. The worksheet only uses your 2021 AGI but this makes it impossible to correctly calculate your 2020 payment. To do that the worksheet would need a line for your 2020 AGI. When I put it what I received and it sees that it was less than $2400, it incorrectly assumes I'm entitled to the difference, which I'm not.
I also noticed that when in "forms" mode, which is how I prefer to work, the worksheet doesn't show.
The Recovery Rebate Worksheet used in the calculations for stimulus in TurboTax uses $150,000 for Married Filing Jointly which is the correct amount for tax year 2020. It also uses the 2020 AGI from the 2020 Form 1040 Line 11.
The TurboTax Recovery Rebate Worksheet is the same as the IRS Recovery Rebate Worksheet as shown in the IRS Form 1040 instructions on page 59 - https://www.irs.gov/pub/irs-pdf/i1040gi.pdf#page=59
After reading this link, there are two different types of rebates, one based on 2019 AGI AND one based on 2020's.
Here's an excerpt
Economic Impact Payments were based on your 2018 or 2019 tax year information. The Recovery Rebate Credit is similar except that the eligibility and the amount are based on 2020 information you include on your 2020 tax return.
You will need to know the amount of any Economic Impact Payments issued to you to claim the Recovery Rebate Credit. If you’re eligible for the Recovery Rebate Credit on your 2020 tax return, it will be reduced by any Economic Impact Payments we issued to you. Always be complete and accurate when you file a return.
I stand corrected. Now I wonder why I never received any of the Stimulus moneys.
The Recovery Rebate Credit, as you outline, is based on your 2020 tax return. The payments in stimulus round one and/or two were "Advances" on the Recovery Rebate Credit. The payments were simply based on those prior returns because they were available. The 2020 tax return is the baseline used to reconcile the credit.
So if, based on your 2020 tax return (2020 AGI), you are eligible for $2400 for round one and $1200 for round two ($3600 total) and you received $2400 in round one, but zero in round two, then your Recovery Rebate Credit on line 30, should be $1200.
Here is a link with more information on the Recovery Rebate Credit.
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The IRS does not agree with the Recovery Rebate Credit calculated by TurboTax using the Recovery Rebate Credit Worksheet. In fact, they reduced the amount calculated by TurboTax by about 50%. When trying to get the IRS to explain, all they would say is that their calculation is correct and to talk to TurboTax. How can I contact TurboTax and get their input on this problem?????
How much is on your 1040 line 30? Did you get the first and second Stimulus payments? Line 30 should be only if you didn't get it all or qualify for more. Maybe the IRS thinks they already sent it to you. Maybe you got the second one after you filed?
Did you enter the Stimulus you already got or reported the wrong amounts or entered the wrong amounts in the 2 boxes. If you entered the total you got for both rounds in the same box it would think you didn't get the other one. The IRS knows how much they already sent you. You might have tried to claim it again on line 30.
The problem I encountered when filing jointly was that I logged into my IRS account and used the EIP1 and EIP2 amounts listed there. This did not show the EIP1 & 2 payments for my wife so I took a larger credit than I should have. When the IRS sent me a revision on the return I went back and checked what I actually received and was able to see where I went wrong. Interestingly, when I login in to my IRA account the just received EIP3 payment shows the total payment for both my wife and me.