I am working on 2020 taxes everything is about complete but...
In 2019 filed MFJ, Our AGI was less than 150,000 and we have two dependents under age 17
The first stimulus paid 2900, I think it should be 3400
The second paid 1800, and I think it should be 2400
This should be claimed this year as a tax credit according to the IRS website. But TurboTax says we got all we should have.
Am I overlooking something? Is this a calculation error in TT
Please verify that both of your dependents are under age 17 on your 2020 tax return and your income is showing below $150,000. The correct amount of Recovery Rebate Credit is based on the information in your 2020 return only. The amounts you received as stated in your post would be correct if one of your dependents turned age 17 in 2020.
Here is a link that will help explain the Recovery Rebate Credit.
Same thing here. I didnt get the $500 or $600 for my son but did for my daughter. But turbotax is saying I got what I should have and irs told me I didnt and put what I'm missing on line 30 on a 1040 form. Turbotax cant figure out how to get me to the form because its saying I got what I should have even though irs told me I didnt so I will with taxes but now what I dont know how to put it in
The TurboTax software adds together the entries that you made for receiving stimulus check 1 and stimulus check 2.
Then the software computes the amount of your stimulus check amounts based upon the information that has been entered into the tax software.
If you are due an additional amount, it will be issued as a Rebate Recovery Credit (RRC) on line 30 of the 2020 1040 tax return.
If you believe that you are due a Rebate Recovery Credit (RRC) on line 30 of the 2020 1040 tax return, then you should:
If there is a difference, it is in one or both of these situations.
In TurboTax Online, you are prompted to input stimulus check 1 and stimulus check 2 information under Review down the left hand side of the screen.
You can also access your stimulus check choices by following these steps:
Down the left side of the screen, click on Federal.
See also this TurboTax Help.
Do you have any suggestions for this situation: Filing with two dependents this year, but only had one last year due to a custody agreement with the other parent. TurboTax says I am owed $1100 for my second dependent but that payment went to the other parent. Is there a way to override this so that I don't get sent money that I have to repay with penalties later?
There is one quirk in the stimulus package, divorced parents get to double dip. This means that you do qualify for the stimulus. See Economic Impact Payments
Yes I know I put in the amount I received but because they went off my 2018 taxes they didn't give me the right amount my son was born October 2019. So I should be getting $1,100 for him but cant because its saying that I received the right amount when even the IRS is saying I didnt. And no one that i have talked to on this turbotax knows how to do it i guess.
I played with the program. I added a dependent for 2019 and put in the amounts received. The refund went up and the program still said I had received the right amount. Please take a look at your actual return, line 30 and see if the program added it to yours like it did to mine. See How do I preview my TurboTax Online return before filing?
I am having the exact same problem. I am missing 1100 due to my son being born in 2019 but the IRS used my 2018 return for both Stimulus checks.
For some reason Turbotax says It looks right even though both 2019 and 2020 returns have 2 dependents listed.
I'm thinking this is a TT issue.
Please take a look at your actual return, line 30 and see if the program added the stimulus to your return regardless of the words on the screen. There is a mismatch. See How do I preview my TurboTax Online return before filing?
Yes it definitely is turbotax issue because I just tried in another tax website and had no problem getting the form and seeing it. But not here can't see/get the form. And of course the people that call ya are worthless and say oh do this do that and still NOTHING! I have checked and checked and nothing. So its definitely turbotax.
Is one of your dependents not eligible (17 or older as of Dec 31)? I have seen this issue occur when a taxpayer received the stimulus for a child that was not eligible but also had a newborn that did qualify but received no payment for. And because the amount received was technically correct, the credit does not appear. @Florenceann0
Dependents are 1 and 4 and are included on this return and 2019
I can edit the values to make it correct but TT is incorrect
TurboTax initially calculates this based on the prior year tax return, but it does require you to report what has been received so far.
Just to make sure you are reporting this in the expected section, you will need to be at the end of Other Tax Situations, first.
To get there in TurboTax Online, follow these steps:
For more information, please refer to: Questions and Answers about the Second Economic Impact Payment which is still getting updates.
To check your payment status with the IRS, go to: Get My Payment Link.
Turbo Tax is not calculating the Recovery Tax Credit correctly. I have confirmed this with two different returns. One where AGI for 2019 exceeded $75K, but was below $75K in 2020. Another where AGI qualified in 2019, but not in 2020. When will this be corrected? If necessary, can I override the amount in forms view?
@Kurt8 wrote:
Turbo Tax is not calculating the Recovery Tax Credit correctly. I have confirmed this with two different returns. One where AGI for 2019 exceeded $75K, but was below $75K in 2020. Another where AGI qualified in 2019, but not in 2020. When will this be corrected? If necessary, can I override the amount in forms view?
TurboTax calculates the Recovery Rebate Credit using the IRS Recovery Rebate Credit Worksheet. The credit is based on the 2020 federal tax return information and the 2020 AGI on the 2020 Form 1040 Line 11. Any eligible credit is entered on Form 1040 Line 30.
Go to IRS Form 1040 (2020) Instructions page 59 for the Recovery Rebate Credit Worksheet - https://www.irs.gov/pub/irs-pdf/i1040gi.pdf#page=59
I have gone to the IRS worksheet. It reinforces that Turbo Tax is calculating the credit incorrectly. Y'all need to up your game.
@Kurt8 wrote:
I have gone to the IRS worksheet. It reinforces that Turbo Tax is calculating the credit incorrectly. Y'all need to up your game.
Where is it calculating the credit incorrectly? Line number on the worksheet?
TurboTax has processed 100's of thousands 2020 federal tax returns without any systemic issues with the Recovery Rebate Credit. Why do you think yours is incorrect since the same worksheet is in the TurboTax software as is shown on the IRS Form 1040 Instructions.
It is now calculating correctly. The updates helped and on one return, the social security number was off by a digit.
This is my situation, too. MFJ with 2019 AGI under threshold, never received either of the $1200 stimulus checks, DID receive the 2 @ $600 within a week or 2 of law passage. Had to search for Recov Rebate Cr form, had to override everything and the form still has an un-deletable Note at the Bottom referring to our 2020 AGI (to high to qualify). Overriding seems to work, but shouldn't need to. I didn't use TurboTax in 2019 (used Drake), and spent literally over an hour with TT Support whose only ultimate advice was to wait until 2/12, when the "final" Turbotax update will come out and this should be fixed. The $1200/2400 payments in the Spring of 202 are based on 2019 income, NOT 2020. There is debate about what the payments of $600 are based on, and some reporting that if your 2020 income is disqualifying but 2019 was not, you should delay filing. Right now, wondering if I should have stuck with Drake.
@JeffP_MA The stimulus payments are an advance tax credit based on the 2020 federal tax return.
The Recovery Rebate Credit Worksheet used by TurboTax and any other tax preparation software is the same worksheet as required by the IRS to calculate the tax credit. The worksheet requires the use of the 2020 AGI from Form 1040 Line 11.
Go to IRS Form 1040 (2020) Instructions page 59 for the Recovery Rebate Credit Worksheet - https://www.irs.gov/pub/irs-pdf/i1040gi.pdf#page=59
@DoninGA Unfortunately, I think you are right. 😭
The reporting has been consistent that if your 2020 Income is over the threshold and your 2019 was under, you will not be required to return any of the payment you received in 2020, but I never received the CARES Act credit in 2020 (and it is seemingly precluded from being paid or credited after 2020 by Code section 6428(g)(3)) so I am . . SOL. That'll teach me to rely on "reporting" in the popular press.
We're having a problem also but with a different twist on the credit calculation. We got the first stimulus payment before we filed our 2019 return and therefore it was based on our 2018 AGI The second stimulus, of course, was based on my 2019 AGI. For both tax years we were over 150K threshold but only in 2018 was the AGI low enough to require a proration of the stimulus amount. Apparently, TT is using 2018 AGI to calculate that a prorated amount should have been paid for the second stimulus. How do we get rid of the erroneous credit that TT is showing on our 2020 return?
The Recovery Rebate Credit on your 2020 tax return is based only on the information in your 2020 tax return. The AGI on your 2020 tax return is correctly being used for the calculations. If your 2020 AGI is between $150,000 and $200,000, the stimulus amounts for both rounds one and two are using the same proration (2020 AGI). That prorated amount is then reduced by any payments you actually received in rounds one and/or two to arrive at the credit due to you and added to your 2020 tax return.
The prior year AGIs were only used for rounds one and two because those were the returns available; they were actually advances to the Recovery Rebate Credit. The stimulus payments were always meant to be based on 2020 tax returns.
Here is a link with more information on the Recovery Rebate Credit.