Recovery Rebate - Newborn

[A00150122]

Hello,

I filed my 2021 tax return already but it didn’t calculate the recovery rebate for my new born child of $1,400. At first, I thought the IRS will calculate it and send it separately but I just read online I have to claim it on my tax return. FYI. Turbo Tax did not mention or ask to input the additional recovery rebate credit for new born but only ask how much I received thus far for the recovery rebate credit and to input what I received. 

Please advise. 

[MayaD]

If you are eligible to claim the Recovery Rebate Credit due to the changes this year(newborn) and you entered the amount you already received, check  line 30 of your 2021 Form 1040 to check if you actually received the Recovery Rebate Credit. Your refund will include the credit. 

To preview form 1040:

1. Select Tax Tools. Next, select Tools
2. View Tax Summary in the pop-up,
3. Then Preview my 1040 in the left menu.

[A00150122]

Thanks for your response. I checked line 30 on my 1040 and it didn’t calculate my qualify recovery rebate credit of $1400. I only got the child tax credit for my new dependent of $3600 and not the recovery rebate. Do I have to amend my 2021 tax return to get the recovery rebate? I know I’m eligible for that since my son was born last year on 12/11/2021. I don’t know why Turbo didn’t calculate it when I input the amount I received from the IRS and did not include me new born credit. 

[A00150122]

Thanks for your response. I checked line 30 on my 1040 and it didn’t calculate my qualify recovery rebate credit of $1400. I only got the child tax credit for my new dependent of $3600 and not the recovery rebate. Do I have to amend my 2021 tax return to get the recovery rebate? I know I’m eligible for that since my son was born last year on 12/11/2021. I don’t know why Turbo didn’t calculate it when I input the amount I received from the IRS and did not include me new born credit. 

[DianeW777]

Yes, you should get it if you meet the adjusted gross income requirements and if it's not on your tax return you should file an amended return per the IRS website. 

• IRS RRC- Correcting 2021 Tax return 
  • The payment phases out for:
  1. singles with adjusted gross incomes (AGI) between $75,000 and $80,000.
  2. For married filing joint taxpayers, the phase out threshold falls between $150,000 and $160,000.
  3. Head of household filers will see a phaseout between $112,500 and $120,000
• How to amend (change or correct) a return already filed? (Form 1040X is available now)
• When will federal forms be available?

[A00150122]

Hello Maya,

I know what I did wrong. I entered the wrong amount received on the total stimulus payment. Instead of entering the correct amount of $2800 (amount received) I entered $4200 which included the additional recovery rebate. I got confused because TurboTax factored the additional credit of $1400 which I didn’t received. I already file my tax return. Do I need to file an amended tax return? If so, can I login to turbo tax and file it electronically? 

Thanks your help.

[JamesG1]

If your return has been transmitted and rejected by the IRS, you can correct your tax return and re-transmit.

If your return has been transmitted and accepted by the IRS, you should not attempt to amend until the IRS has processed your tax return.

The IRS may correct your Federal 1040 tax return but, because we know that there is an error on the tax return, we do not know how long the processing time will take.

[A00150122]

Thanks James.

The IRS accepted my return and issued my refund already. I received it this morning. Does that mean I can file an amended return via Turbo Tax electronically to get my recovery rebate? 

[JohnW152]

Yes, you can, since you've gotten your refund.

You’ll need to file Form 1040X for your amended return, which TurboTax can do for you..

Please see the TurboTax Help article How to amend (change or correct) a return you already filed for instruction on how to amend your previously-filed tax return.

The third Economic Impact Payment in 2021 did not include payments for children born in 2021, because it was based on information from your 2020 or 2019 tax return.  However, you may claim a 2021 Recovery Rebate Credit for them if they are a qualifying dependent and you’re eligible for the credit. 

You may claim a 2021 Recovery Rebate Credit for the qualifying dependent, if you’re eligible, on your 2021 tax return that you will file in 2022.

@A00150122

[A00150122]

Thanks John!

I just amended my federal and efile. Once the IRS review and accept my return they will mail me a check within 3-4 weeks.

However, it said I have to also amend my state return via mail. Nothing change on my state and I don’t owe anything. Do I still have to mail and amend the state? I already efile with my federal from the original tax return. 

[Vanessa A]

No, you do not have to amend your state return since nothing changed on the state return.  

[A00150122]

Thank you Vanessa! 

You guys are really helpful in answering my questions! 

Great support and customer service! 

Thank you so much!