I am doing my daughter and son-in- law's taxes. They had a child born in Oct 2021. The return does not include the Recovery Rebate Credit for the child on line 30 or Form 1040. When doing the return Turbo Tax is not asking any questions about stimulus payments that they received. They did receive a reduced stimulus payment in March 2021 around $1,200.
Their AGI for 2021 is $175,000. Based on this AGI does their child qualify for the Recovery Rebate Credit? If so, how do I get Turbo Tax to include the credit.
Thanks
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The 2021 EIP/recovery rebate credit has the same income phaseout thresholds as for 2020, $75,000 for single filers and $150,000 for married couples filing jointly.
TurboTax will not ask the stimulus questions when you do not qualify for the Recovery Rebate Credit.
To be eligible for the Recovery Rebate Credit you need to be a U.S. citizen or U.S. resident alien in 2021 and have a Social Security number that is valid for employment.
You cannot be claimed as a dependent by someone else to be eligible.
Your credit amount will be reduced if your 2021 adjusted gross income (AGI) is more than:
Your payment will be reduced by 5% of the amount by which your AGI exceeds the applicable threshold above. (IRS FAQ Recovery Rebate Credit )
Please see What are the eligibility rules for the Recovery Rebate Credit? for additional information.
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