Stimulus checks: new baby 2020 not calculating

[VolvoGirl]

@ksmith8807   Go back to My Info and make sure you said your baby lived with you the WHOLE YEAR and not just the number of months.  Even if a baby was born on Dec 31 he is considered to live with you the whole year.  You might have to delete the baby and re add him.  Pay attention to the questions, especially the one asking if he paid more than half of his support.  

[DianeW777]

The child tax credit (CTC) along with the additional child tax credit (ACTC) may both be on your tax return. The ACTC is a refundable credit, while the CTC is allowed to reduce your tax to zero but any balance is not refundable. 

Check line 28, Form 1040, to see if you have the ACTC or refundable portion listed. This may show the other portion and you should also see Form 8812 in your tax file (see steps below).

The stimulus payments are recorded under the Federal Review tab.  Be sure you selected the correct answer so that you can enter the payments you actually received. When you look at Preview My 1040 below, be sure to check out line 30, Form 1040, for the Recovery Rebate Credit, which is the reconciliation result for the stimulus not yet received (see steps and image below).  

By using the Tax Tools you can take a quick review of your 1040:

• To find Tools: 
  • Sign into your TurboTax account and open or continue your return. 
  • Select Tax Tools in the left menu. 
  • You'll find Tools beneath Tax Tools.
  • Select View Tax Summary
  • Select Preview My 1040 (left black panel)

In TurboTax Online, to claim the Recovery Rebate credit please do the following:

1. Sign into your account and continue from where you left off
2. Click on Federal in the left-hand column, then on Federal Review on the top of the screen
3. On the next page titled Let's make sure you got the right stimulus amount, click on Continue
4. Follow the interview 
5. TurboTax will determine whether you are entitled to any additional stimulus
6. Any stimulus amount remaining due to you will show as a credit on line 30 of your form 1040.

[lori-drozd]

@Anonymous had the right answer.  I had all the information filled in correctly. I double, tripled, and quadrupled checked. I deleted my child and re-added.  Nothing worked for the stimulus portion to correct it to add the additional amounts for my new child dependent. TurboTax was recognizing them as a dependent so I was still getting the normal deductions just the stimulus portion was not "correct"

Turns out it WAS correct. Each stimulus was based on a prior tax return (2018/2019 [if filed] for #1 and 2019 for #2). It used these monetary numbers for income and dependents. The phase out portion is extremely quick for the stimulus (5% for everything over 150k joint). While the true stimulus is really based on 2020 returns, you don't have to pay back if you made more money.  Well, we did make more and while barely over the original threshold, we are more over this time. 

So TurboTax (and the IRS) take your 2020 income and determine what you SHOULD have gotten for the stimulus.  And even with the extra dependent we still made too much.  Simple example of what is happening (lets pretend full payment based on 2019):

Stimulus 1: 2 adults - 2400

Stimulus 2: 2 adults - 1200

Total: 3600

Now in your 2020 Taxes, you have a child, which should be $500 round 1 and $600 round 2, so an additional $1,100! Not in this case (or in others too!).  Lets say I now make more that in 2020 (the real calculated numbers) I have into the phase out on the money.  Based on on my 2020 taxes I SHOULD have only gotten (hypothetical example) $2000. Well I don't have to give any money back, so ya me for getting extra money.  BUT I had a baby, so we add what should have been the additional child portion: $2000+$1,100 = $3100.  Well $3100 < $3600 I actually got so even with the new child I still get NO ADDITIONAL STIMULUS MONIES.

So this was the answer, my 2020 income was high enough that the "phase out" was > the additional child. Therefore, no more extra money.

[ksmith8807]

This did it!! THANK YOU SO MUCH!

[Kodie18]

My income is under the AGI for receiving the first two stimulus.   Online calculators show I should have received for my child born in 2020 but there is no way for me to change it in Turbotax.  

[DianeW777]

The first two stimulus were for the 2020 tax return, reconciled on the 2020 tax return and will have no affect for your 2021 tax return. 

If you are referring to the third stimulus (Economic Impact Payment), this was $1,400 for each person listed on the 2020 tax return.  The third stimulus will be reconciled on the 2021 tax return by selecting the 'Federal Review' tab at the top.

Be sure to answer the questions and enter the amount you actually received in 2021 for the third stimulus. Once this section is completed you can check to see if an amount is populated on your tax return.  Follow the instructions below.

You can view your entire return or just your 1040 form before you e-file:

1. Open or continue your return.
2. With the Tax Tools menu open, you can then:
   • View only your 1040 form: Select Tools. Next, select View Tax Summary in the pop-up, then Preview my 1040 in the left menu.
3. Scroll to line 30.

If you are referring to the advance child tax credit (ACTC) you will also reconcile this on your 2021 tax return under Deductions and Credits. You can check on the IRS portal and/or use your 6419 IRS letter for the amounts you received in advance. The balance will be reconciled on your tax return.