Entering Stimulus Amount Received (Tax Year 2020)

[Wheatman31]

My wife and I have two children together.  I also have two children from a previous marriage.  According to my divorce agreement, my ex-wife and I each claim one of our two children each year on taxes.  Toward the end of 2019, I was behind on child support due to a late-year change in jobs.  She informed me that she would be claiming both dependents for the 2019 tax year.  My current wife and I decided not to fight it and just move forward knowing we would be able to re-claim the child for the 2020 tax year.  That decision cost us money on the stimulus checks, but it is what it is.

Here's the problem:

When completing the 2020 tax return using Turbo Tax, it asks how much we received in stimulus checks.  If I enter the correct answer ($2400 and $2400), it assume we were underpaid because we are now claiming three dependents and in 2019, we only claimed two due to the child support issue mentioned above.

So..........do I enter the truth ($2400 and $2400) or do I enter what the program THINKS I should have received when it sees I have three dependents (and the one from the previous marriage is nine years old).  Claiming "the truth" has a significant impact on my tax returns.  We move from owing ~$1500 to receiving a ~500 refund.

Help?

[DavidD66 · Accepted solution]

You should enter exactly what you received.  You're not doing anything wrong.  The "Recover Rebate Credit" (or stimulus) is based on 2020 tax returns.  It was paid out based upon 2019 (or 2018 in some cases) tax information.  You are entitled to credits for three dependents, as that is what you have on your 2020 return.  On the flip side, your ex-wife was paid more than her 2020 tax return entitles her to.  But the way the stimulus works is, if you got more than you should, you get to keep it. 

So claim three dependents.

[Wheatman31]

Thanks, David. 

It feels wrong to lie, so was leaning toward answering with the "real" numbers, but it also feels odd that I appear to be getting a credit for a dependent that I claim in 2020 although I was unable/did not claim her for 2019.  I like your answer and it gives me confidence to enter the "real" numbers.

Thanks!

[Lashayjudy44]

I haven't received any of my stimulus check money my first my second my third

[AamilD]

For the 2021 Tax year, you will only be able to claim your third stimulus payment. If you want to receive the first two payments, then you will have to either amend your 2020 Return if you filed it earlier or if you did not file, then you will have to file your 2020 Tax Return.

Please review the eligibility criteria below to determine your eligibility:

Generally, if you’re a U.S. citizen or U.S. resident alien, you are eligible for $1,400 ($2,800  for a joint return), plus $1,400 for each qualifying dependent, if you (and your spouse if filing a joint return) aren’t a dependent of another taxpayer on a 2020 tax return, have a valid Social Security number (SSN) (see exception when married filing jointly and exception for qualified dependents) and your adjusted gross income (AGI) does not exceed:

• $150,000 if married and filing a joint return or if filing as a qualifying widow or widower
• $112,500 if filing as head of household or
• $75,000 for eligible individuals using any other filing statuses, such as single filers and married people filing separate returns.

If you think you are eligible for the stimulus check and still have not recived it, please follow the steps below to claim your third stimulus check:

1. Sign into your account and continue from where you left off
2. Click on Federal in the left-hand column, then on Federal Review on the top of the screen
3. On the next page titled Let's double-check the amount you received; you will be able to enter the partial amount you received.

Please refer to the image below

Please visit How to amend (change or correct) a return you've already filed for further instructions on how to amend your 2020 Tax Return to claim the first 2 stimulus payments.