Recovery Rebate Tax Credit

[btwaldman]

There is an issue with how turbo tax is working related to the stimulus tax credit.  I did not receive my 1st payment but did get my 2nd.  I was told by the IRS, and confirmed via turbo tax's info, that I would be able to adjust my return to claim a credit for that missed payment as I was eligible.  However, I did not get that prompt when I was completing my taxes. 

After fiddling around I was able to figure out that the problem is that turbo tax is looking at my 2020 income to see if I qualify instead of 2019.  I cannot see how to manually override this or even enter the proper info into line 30 on the 1040.

I cannot find anywhere that says that I am no longer eligible because I ended up with higher income in 2020.

[VolvoGirl]

Sorry The Stimulus is really based on your 2020 return. You reconcile it on 2020.

I found this.....

See IRS Question J3. It is about needing to pay back the Stimulus if you don’t qualify on your 2020 return (you don’t have to pay it back). So it will also apply to also receiving a payment you didn’t get. It says…. if based on the information reported on their 2020 tax returns, they no longer qualify for that amount or would qualify for a lesser amount.
https://www.irs.gov/newsroom/economic-impact-payment-information-center-topic-j-reconciling-on-your-...

[VolvoGirl]

And found this 

From Q B2 here, https://www.irs.gov/newsroom/economic-impact-payment-information-center-topic-b-requesting-my-econom...

If you did not receive a payment in 2020 and you qualify for a payment based on your 2020 information, you should claim the Recovery Rebate Credit on your 2020 Form 1040 or 1040 SR.

[pajakdwiina]

We (me, wife and daughter) have not received stimulus #1 nor #2. When I work on the turbo tax, only got rebate credit $3600 (me and wife), how about my daughter? did I miss something or turbo tax does not include dependent on calculating the rebate?

[AmyC]

@pajakdwiina The stimulus is for children, 16 and under. If your daughter is 17 and up, she does not qualify for a stimulus payment. If she is under 17, then something is amiss. There is a section on eligibility in the Economic Impact Payment Information Center.

[Marisha6]

What do I do if I filed my taxes before receiving the 2nd stimulus? I filed my taxes before it was sent to my account after all the errors. It has been applied to my taxes already and I got the stimulus 3 to 5 days after sending my taxes in.

[JamesG1]

If you have e-filed your 2020 Federal tax return and the tax return is rejected by the IRS, you will have the opportunity to correct the entries and calculations to generate the Recovery Rebate Credit as well as correct the entries that generated the rejection.

If you have e-filed your 2020 Federal tax return and the tax return is accepted by the IRS, we will see what approach the IRS takes in this situation.

I suspect that the IRS will scrutinize stimulus payments that were issued against the tax returns that claim the Recovery Rebate Credit.  The IRS may be able to correct your tax return and your refund much like it corrects tax returns and refunds which misstate Federal withholding tax.

When we receive direction from the IRS, it will be reported at the TurboTax COVID Tax Center and the IRS Economic Impact Payment Information Center.

[dchiogo]

I was not asked about my stimulus checks or recovery rebate. nothing was mentioned about it. 

[VolvoGirl]

@dchiogo   Have you filed yet?

When you go through the federal review tab it will ask how much you got if any.  Or to enter your stimulus payment in TurboTax, type "stimulus" (without the quotes) in the Search box, then click the link that says "Jump to stimulus."

After you have entered your tax information and are ready for the Federal Review, it will be the first question.

If you are trying to trigger it, you can go to Other Situations, answer any questions and click Done. The next automatic selection is Federal Review and it will ask about payments received.

The Recovery rebate credit is on 1040 line 30.  It either adds to your refund or reduced a tax due.

[evanteck318]

I've finished filling out my 2020 return having said that I did not receive the second stimulus payment. When I review my 1040, I don't see anything in line 30 for the recovery rebate credit. Anyone know if there's something else I should be doing?

[Bngrainger01]

I have a question 

Last year my sons dad filed with our son on his taxes. This year I am filing with our son and when it comes to the rebate credit for our son I my self did not receive the credit for him but his dad did ! It is saying I qualify to receive that payment for our son too ! My question is, if that is okay to accept that and file 

[CatinaT1]

Yes.  According to the IRS, parents who are not married and alternate claiming of a child dependent, "The parent who claimed their child on their 2019 return may have received an additional Economic Impact Payment for their qualifying child. When the parent who did not receive an additional payment files their 2020 tax return next year, they may be able to claim up to an additional $500 per-child amount on that return if they qualify to claim the child as their qualifying child for 2020."

This only references the one stimulus payment but would apply to both.

This is referenced in the last paragraph under Claimed dependents are not eligible for an additional $500 payment in this article:  Why the economic impact payment amount could be different than anticipated

This will all be done by claiming the Rebate Recovery Credit on your 2020 return.

[sklug000]

My daughter was a student and dependent last year (filed by Turbotax as an independent return for a refund) and is filing not as a dependent this year 2020. The program keeps saying she is entitled to the first two credits when she is not as dependents were not eligible, but when I override this and put zero the program will not let me file.

[DoninGA]

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@sklug000 wrote:

My daughter was a student and dependent last year (filed by Turbotax as an independent return for a refund) and is filing not as a dependent this year 2020. The program keeps saying she is entitled to the first two credits when she is not as dependents were not eligible, but when I override this and put zero the program will not let me file.

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Since she is not a dependent on a 2020 federal tax return she is entitled to the Recovery Rebate Credit as it only uses the 2020 federal tax return for eligibility.

[tec34980]

How was an individual qualified for the 600 dollar or Second Stimulus payment? I did not receive the second payment so I filed for the Recovery Credit of 600 dollars in line #31 and the IRS rejected it.  What gives?