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Level 2
January 27, 2021
Question

Covid stimulus question during 2020 filing

the app/website asks the amount for each stimulus payment...

For the first one, all is well, we got the full amount, and the basis for this amount was based on our 2018 filing.

For the second one, we received the reduced amount just recently and it was based on our 2019 filing, and our AGI had pushed us over the limit to get the full amount.

Within the app/website, there is no place to distinguish this, and the app thinks we were shorted on the stimulus rebate and adds the missing amount to our expected refund.

My concern is, is this correct?   Did the IRS mess up, and mistakenly short us on the rebate, or does the website need an update to distinguish when the second stimulus was issued? If the IRS is correct and shorted us, then great...we will get more $$ refunded, but if TurboTax is wrong, I don't want to submit our returns in error.

Were both stimulus checks supposed to be based on the same year? In our case 2018.

6 replies

Employee Tax Expert
January 27, 2021

No, the Recover Rebate Credit is based on your 2020 AGI. If you got less paid before because your AGI limited the amount then you might qualify for the rest if you AGI was lower in 2020.

 

For additional information please see Stimulus FAQ at the end of the TurboTax article.

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Level 2
January 27, 2021

Ok thanks..I think I get it...as much as I can "get" the IRS....the 2nd stimulus is/will be based on 2020 AGI.

Our 2020 return is not yet complete, so it seems your saying that it may go back down if our AGI changes for 2020 filing.