Turbo Tax 2020 wants us to enter Stimulus payment received in January 2021. We're not confusing this with the 1st round in 2020 because it specifically asks for both and specifically says the 2nd one may have come in 2021. Shouldn't stimulus received in 2021 go on next years taxes instead? Why do I need to put it on 2020?
No it will be reported this year as a second round payment in your Turbo Tax program.
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Yes, you will need to amend the tax return if the second stimulus payment was not included in what was reported. While the payment was received in 2021, the legislation was passed at the end of 2020. Therefore, the IRS has included both payments for the 2020 filing. That way, if there were eligible amounts not yet received, this could be sent as soon as possible.
To amend the return, begin by opening your TurboTax program. Then, follow these steps:
- You will be at Tax Home. Scroll down to Your tax returns & documents and Show. Select Amend(change) my return and follow the prompts.
- This process will record the original filing before the updates so that Form 1040-X can be properly completed.
- For more details, see: How do I amend my 2020 TurboTax Online return?
Once the amendment is started, navigate back to the stimulus payment section by following the same steps described below to update your return.
If the return has not yet been filed, to return to the stimulus payment area in TurboTax, follow these steps:
- Go to the search box and enter stimulus. Click the Jump to link.
- Answer Yes.
- At the next screen, Let's double-check the amount you received, answer No to edit the first-round and second-round amounts.
- If no stimulus amount was received, enter 0. An amount should be entered in each box. When finished, click Continue.
No!! Do not amend at this time!!
The IRS has the authority to correct the stimulus issue for the taxpayer if the taxpayer makes a mistake. Although I have not seen this spelled out in black-and-white, what seems to be the most likely situation — and is suggested by some IRS FAQs — is that the IRS will correct your tax return and pay the adjusted refund. This will likely kick your tax return out of the normal expedited processing system and delay your refund.
You should only file an amended tax return if the IRS pays the refund that you originally claimed without adjustment. Don’t file any amended return until your original return is completely processed and you have received any refund that you claimed. If the refund is less than you claimed, you should also wait for the IRS to send a letter explaining the adjustment, which comes separately from the refund and usually 2 to 3 weeks later.
From the IRS:
A5. Claiming the Recovery Rebate Credit on your tax return will not delay the processing of your tax return. However, it is important that you claim the correct amount. Any errors in the credit amount on your tax return will be corrected. Your refund may be delayed while we make any necessary corrections.