Recovery Rebate Tax Credit

[VolvoGirl]

If you got less than $200 you must have a high income.   If your 2020 income is too high you won't get prompted for the Stimulus section since you can't qualify for any more.  And you don't have to enter what you already got and don't have to pay it back.

[monaLisa_smirk]

...actually, we figured this out, and beat the system. Removed my W2, and then made the question show up with the 'jump-to' link. Aha! Then put the value back in. Hooray for work-arounds. [Congrats to Omari in Indianapolis / phone support for coming up with that one. ]

[VolvoGirl]

But why did you need it to show up?  Did it give you any more on line 30?  If it did it could be wrong and will delay your refund by weeks.  

1040 line 30 is only if you qualify for more not what you already got.

[NCperson]

@hepplert - here is the difference...

for the child tax credit ("CTC") , you get up to $2000 for each child; they have to be under the age of 17.   whether you get the entire $2000 is really dependent on your income, but you will get $1400 regardless.  It's complicated.

For other people that may live with you (examples: an elderly parent, a child over 16 who is not working and not in school, etc.), the credit is $500.  

And if the 'other dependent' box is checked and your child is under 17, then you are only getting $500 when you could be getting up to $2000 - that is why you saw you refund jump when we fixed your children on your 2020 tax return (plus the $2200 for the stimulus); the part that jumped beyond $22200 was switching from $500 to up to $2000 per child. 

I don't know why some children end up with the check box in the wrong column: I just know when I see parents complaining about their tax return on these boards, it's one of the things I ask them to check  that the checkbox is under CTC ("Child tax credit") and not 'other dependents'

does that help? 

[NCperson]

@monaLisa_smirk - if you think you beat the system, what is on Line 30? I bet it's still the same....

the Recovery Credit is based on your 2020 tax return - income, filing status and children LESS what you received on the first two stimulus payments.  That difference ends up on Line 30 and cannot be negative.

it doesn't matter that you put in your stimulus payments and then posted your W-2 or reversed the order, the result on Line 30 will be the same.  

So what is on Line 30 and did it change????

@VolvoGirl 

[MaggiC]

Well, still no taxes back, and I also went into my other TurboTax account to redo my taxes just to run through all the question's again and it seems they have changed the way your asked about the stimulus credit amounts. When I initially did my taxes it had me enter the amount we received and this time it showed the amount and asked if that was what we received combined. I am wondering if the first time it did not state combined and assumed one of us didn't receive it as it put a credit amount in line 30 and I am guessing that is why we still have not received our return or even got a rejection at this point. Wondering just how long until we get it or get a rejected notice. Was accepted by the IRS on Feb. 15. I know one other person who had the same issue with the questions and amount on line 30, and they have received theirs back, was accepted the same day.

[monaLisa_smirk]

@NCperson  and @VolvoGirl , I am not owed a refund. Line 30 remains blank... and I think that might be correct, because if it were populated, it would give me a rebate for tax-year 2020, which is inappropriate - even though my income will be going back down. My first stimulus payment was correctly calculated on 2018/2019 income; received under $150, total. I wanted to be sure I entered the data, so if I get audited I can show I upheld my side of the contract, by providing data to my tax-preparer (the TurboTax program). They might have coded it differently - kind of like they do for the health insurance forms, and it would have been less confusing. So: there you have my justification for the documentation. I got it to the program; the IRS already has it.   Stay safe, y'all!

[ColeenD3]

TurboTax provides the software for a do-it-yourself tax return. Your return is self-prepared.  It was not prepared by a paid professional tax preparer.

[monaLisa_smirk]

Agree and understand. However, I know from experience having been called in by a state tax agency before that being able to report that I had entered data is valuable. Thank you for your reply.

[Phyllisseidler]

I do not understand how to fil out te recovery rebate credit worksheet especially line 3 4 5

[DoninGA]

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@Phyllisseidler wrote:

I do not understand how to fil out te recovery rebate credit worksheet especially line 3 4 5

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Why are you trying to complete the worksheet?   Go back to Step-by-Step and complete the interview in the Federal Review section for the stimulus payments and the Recovery Rebate Credits you may be eligible to receive.

[Vista]

Turbo Tax inserted $2900 into my tax return, the IRS changed the amount to $2500 and reduced my refund by $400. Why did this happen>

[VolvoGirl]

We don't know.  Was the 2900 on 1040 line 30?  Did you get any of the first 2 stimulus payments?  2900 would be the amount for the first one for married with 1 child 2400+500.  Did you get that one?  The second one is 600 per person.  You may have entered the wrong amounts you received or entered them in the wrong boxes.  

[Chyna3me]

I just got the exact letter got me going back thinking I added in wrong stuff but same I use same system every year. Call irs held on hold to hanging up on me later. What don’t add up is if anything was put in wrong they never would have accepted it period! Fact it goes through seems irs is making error in hopes people won’t follow up on it. Feel they are not giving people the credits that’s put in for one to get, making you wait almost three months for anything then thinking we go away with crumbs I will but I want all what’s their for us, period!

[Chyna3me]

We are past advice your giving. We need you to find out why their sending these letters that’s wrong and taking away or not giving us our credits? I got same exact letter and I saw 683D means homebuyer credit and I never did that credit to begin with, ago did not exceed, and I qualify and my kids and same now I don’t even have to add in personal information anymore . If it was any of these things they never would have accepted them in beginning it’s clear it’s irs issue . Call back like I want make payment I bet someone picks up. If only had two employees working it don’t give them right to **bleep** us over!