Recovery Rebate Credit

[dvnicolai1]

when i prepared my tax this year Turbo Tax calculated a Recovery rebate credit of $199. Its challenged it and i wanted to know why Turbo tax created this credit?

[VolvoGirl]

Did you enter the right full amounts you received for the first 2 rounds?   Maybe you entered an amount wrong.  Or the IRS increased your income so you don't qualify for more.   How much did you get for the Stimulus payments #1 and #2?  $199 is a weird amount for line 30.   

[dvnicolai1]

rebate 1 $2400 rebate 2 $2400. line 11 inc $194,000

line 11 $1500

line 12 $150000

line 13 $44016

line 14 $2201

line 15 $199

line 16 0

line 17 $199

line 21 $199 this is the amount the program calculated that IRS says I owe. the only numbers i entered on the recovery rebate credit worksheet was the $2400 and $1200. TurboTax generated all other amounts and put the credit on line 30 of form 1040.

Was this an error that Turbo Tax generated?

[Opus 17]

If those numbers are from the recovery rebate worksheet, they don’t make any sense. Line 11 is supposed to be your adjusted gross income and line 13 is supposed to be line 11 minus line 12.

Also, you seem to say that you received $2400 in round one and $2400 in around two. $2400 is an impossible number for the round two stimulus payment.  Round one was $1200 per adult and $500 per qualifying child dependent. Round two was $600 per adult and $600 per qualifying dependent.  To get a round one payment of $2400 would indicate you were married filing jointly with no dependents. To get $2400 in round 2 you would have to indicate you were married filing jointly with two dependents. But since round one and round two were based on the same information, that doesn’t make sense, (unless maybe round one was based on your 2018 return, and round two was based on your 2019 return and you had twins during 2019 that were new on your tax return). 

A dollar value for the rebate on line 30 of your tax return of $199 would only be possible if you received no stimulus checks and your income was about $168,000, or, you received a partial stimulus check because your income in 2019 was high, and your 2020 income was lower, so the calculation showed an additional amount could be paid.  

In any case, what is supposed to happen is that you indicate in TurboTax the amount of stimulus that you received. If you did not receive a stimulus, TurboTax will calculate a rebate for you. If you never received a stimulus, or if you skipped that part of the program too quickly, but the IRS did send a stimulus, they will remove the rebate from your tax return.  If the IRS thinks they sent a stimulus but you never received it, you have to initiate a trace of the missing payment, you can’t get a new payment by requesting it on your tax return.

[dvnicolai1]

#1 $2400, #2 1200

it appears that the problem starts when my adjusted gross income is more than $150,000. it computes the diff ($44,016) line #3, and then multiply by .05% to get $2201 line14 which is lower than the $2400 on line 7. It is this calculation that makes turbo tax think I need A $199 Rebate Credit. Is the 5% factor used on line 14 incorrect?

[Opus 17]

Turbotax is calculating that, based on your income, you would be entitled to a rebate of $199 IF you did not receive a stimulus.  Since you already received a stimulus of more than $199 (I think that's what you are saying) then you aren't entitled to an additional credit.  

You seem to have missed the question in Turbotax "tell us about the rebate you already received."  It would have looked something like this.