Recovery Rebate Credit

[zhaol]

I missed the first round of stimulus check because I didn't file my 2019 return by the time they send out the checks (and I did get full $600 for the second round). When I tried to get the recovery rebate credit for the first round in turbo tax, it calculates the amount using my 2020 income instead of 2019 income. My 2020 income is higher than 2019, which make me qualify for less than the full $1200. Is this a bug that Turbotax is fixing because it's not making any sense. 

[AlanT222]

No, it is not a bug.  The program is calculating your credit correctly.  

The recovery rebate credit is figured like the economic impact payments except that the credit eligibility and the credit amount are based on your 2020 tax year information. 

The economic impact payments that were received in 2020 were based on your 2018 or 2019 tax year information.  The economic impact payments were merely an estimate of what you would be entitled to when you filed your 2020 income tax return.  The good news is that if they overpaid you in 2020, you do not have to pay it back.  If they underpaid you, you would get the difference.  

[xmasbaby0]

  No it is not a bug.     If you did not get the money based on your lower 2019 income because you filed late then you just do not get the 1st one----or you get a reduced amount.    People who got "too much" do not have to pay it back, but if you missed it last year--- you have to take what they give you based on your 2020 income.

The stimulus check is an advance on a credit you can receive on your 2020 tax return.  If something went wrong or you did not get the stimulus check in 2020, you can get it when you file your 2020 return in early 2021

The Recovery Rebate Credit will be found in the Federal Review section,  If you are eligible it will end up on line 30 of your 2020 Form 1040.

https://www.irs.gov/newsroom/economic-impact-payment-information-center-topic-j-reconciling-on-your-...

https://www.irs.gov/coronavirus/coronavirus-tax-relief-and-economic-impact-payments-for-individuals-...

https://ttlc.intuit.com/community/tax-topics/help/how-will-the-stimulus-package-impact-me/00/1393859

https://ttlc.intuit.com/questions/1901539-how-do-i-preview-my-turbotax-online-return-before-filing

Click on Tax Tools on the left side of the screen. Click on Tools. Click on View Tax Summary. Click on Preview my 1040 on the left side of the screen.

[zhaol]

How come that is a fair stimulus check if people don't have to pay back the portion that is overpaid? It's not consistent to everyone. To me it sounds like I'm being "punished" for filing tax return later than stimulus check distribution, where I still filed my tax return before filing deadline.