Recovery Rebate Credit

[nphmeier]

My recovery rebate credit form was flagged during my Federal review within Turbotax. To which it prompted me to enter the amount of both stimulus checks received: The initial $2400 and the subsequent $3000, including dependents factored into each. Once I entered the $2400, my rebate increased significantly. As well, following the sheets calculation instructions for the subsequent $3000 stimulus received, my rebate increased even further. My question is if I actually received the $3000 payment in January of 2021, I would assume that I would leave this associated calculation blank, or enter $0.00 and subsequently claim the $3000 on my 2021 taxes.

Am I correct?

Thank you,

[DoninGA]

You should be entering the actual stimulus payments received for the first stimulus and the second stimulus in the Federal Review section of the program.  The first stimulus in the top box and the second stimulus in the second box.  All stimulus payments received for each one include payments to you, your spouse and any dependents.

These payments do not increase or decrease your tax refund if they correctly reflect what you were entitled to received based on your 2020 federal tax return.  If you did not receive the correct amount, then the Recovery Rebate Credit will be entered on your Form 1040 Line 30.  If what you received was the correct amount then there will be nothing entered on Line 30.

You do NOT enter on the 2020 federal tax return any payment you received for the third stimulus.

[NCperson]

you are to enter ONLY the FIRST TWO stimulus payments into the software.  the THIRD stimulus payment is for 2021.  

you state 'both' but there have been three! 

you state the dependents were factored into both, but if the first was $2400, then there were no dependents.  if the 2nd was $3000, then there must have been 3 dependents under the age of 17.

DO NOT OVERTHINK THIS.  Just enter the first and 2nd stimulus payments you ACTUALLY received. 

does that solve the problem?

[VolvoGirl]

What are the actual amounts you got and for who?  The first 2400 would be for Married and no dependents. Then what was the 3,000 for?  How many dependents are on your 2020 return under 17?  The second round was 600 per person.   Do you have 3 dependents so 5 people x600=3,000?  You might be getting the dependent 500 each for the first one if you only got 2,400 for married.  But it seems odd that your refund or rebate would be increasing when you enter what you already got.  

[nphmeier]

thank you for taking the time to respond. 

So, yes there have been three, but of the three, my second, for $3000, was actually deposited into my account in January of 2021, not in 2020; the fact that this amount was deposited in 2021 is what I am wondering about because it was deposited not in tax year 2020, so because of this, must I wait until 2021 tax year to claim it?

Also, you are correct, I have claimed three dependents, but the initial $2400 received was a one-time payment for married couples, excluding dependents.

Please let me know.

[NCperson]

 you are to enter what you ACTUALLY received; it does not ask WHEN you received it.  so that 2nd payment must be entered, regardless of when you received it.  Just enter $2400 and $3000 if that is what you ACTUALLY received. 

if you have 3 children under the age of 17 as of 12/31/20 and you make less than $150,000 in 2020, then I would expect there to be $1500 on Line 30.   if that is not the answer, something is still wrong

the 3rd payment has nothing to do with 2020 tax return; that will be reconciled on the 2021 tax return.

please post back what happens. 

[nphmeier]

Yes, this explicitly answers my question. I was thinking in tax-year terms vs. number of payments terms.

Thank you to all that responded.

Nathan

[VolvoGirl]

RIght.  The first 2400 should have been 3900.  You also get 500 for each dependent for the first round  3 x 500 = 1500.    So you should have 1500 on 1040 line 30.   Then you got the right amount 3,000 for the second round.  Forget about the new 3rd one.  That doesn't go on your 2020 return.  That will be reconciled next year.  

Yes a payment you got in January or February 2021 is an advance and based on your 2020 return. Enter the second Stimulus payment on your 2020 return now. The year you got it doesn't matter. If you don't report it Turbo Tax will give it to you again, which would be wrong and double. The Stimulus entry screen even says the second one is between Dec 2020 and Feb 2021 so you should include any payments you received in January and February.  See the screen shot on this one
https://ttlc.intuit.com/community/after-you-file/discussion/re-can-the-irs-deposit-less-federal-retu...