Stimulus credit

Forum|Forum|5 years ago
February 2, 2021
5 replies
30 views

I am about to finish completing our taxes for 2020 (joint filing). Our income in 2019 was above $150,000, so we did not qualify for any stimulus money. Our 2020 income is below $150,000. Turbotax is giving us a $3600 tax credit (2*$1200 + 2*600 = $3600). I like it, but is this correct, considering stimulus decisions were based on the 2019 tax returns? Thanks.

Best answer by Critter-3

Ok ... BOTH stimulus checks were advances of the 2020 credit sent out using the 2018 or 2019 info the IRS had on hand. The payments are now reconciled on the 2020 return using the 2020 info to compute the 2020 credit so it is very possible you could be eligible for the credit now even if you were not in the past. Enjoy.

Critter-3Answer

Level 15

EB28Author

Level 2

Thank you for your reply. I wonder if anyone else second your interpretation! That would make me feel more confident. Best.

Bru2th

Level 2

I am in the same situation. The only reason my income was significantly less in 2020 was because I was not required to take my RMD on retirement accounts. I am hesitant to take the $3600 credit even though TT is saying I qualify. I thought the first stimulus was based on 2019 income, not 2020 actual income. Maybe that's where the confusion lies. It may actually be the 2020 income, but I have never seen that stated.