First stimulus check

[BLK982]

I'm started filling out the 2020 tax return thru TT and I'm asked if either myself and/or my wife received the first stimulus check.  I noted that we didn't so TT showed a $2400 credit.  My wife was going thru the immigration process for a green card from Canada to the US earlier this year.  When I originally did my taxes last spring she just had a TSIN and not a SS number.  Neither her nor I received any money from the first stimulus CARES program.  In October she was granted permanent residences and received a Social Security number and card.  My question is whether the $2400 TT credit is something I can now legitimately claim or not.

Thank you,

[Opus 17]

Yes it is.  The rebate is a credit based on your 2020 information.  The IRS used 2019 and 2018 information to make advance payments, but if you qualify on your 2020 return, you get it even if you didn't receive it before.

However, you need to skip this section and wait for it to be updated to account for the round 2 stimulus payment, which is being sent out from now to January 15.  After January 15, revisit this section because you will get an additional amount, unless you get a round 2 payment instead. 

[NCperson]

yes, you can....because you both will be using a SS# for your 2020 tax return..

The way this REALLY works is EVERYTHING is based on you 2020 income, filing status and number of children under the age of 17. What these were in 2018 and 2019 does not matter.

The IRS will calculate your stimulus based on 2020 numbers; that is what is considered the ACTUAL.

The two payments were just ESTIMATES

if the ACTUAL is greater than the ESTIMATE, you will receive that amount as a credit on your 2020 tax return.

if the ESTIMATE is greater than the ACTUAL, you are not required to return the money nor does it impact your refund. Line 30 on Form 1040 will be zero.

so the fact your wife didn't have an SS# for 2018 or 2019 is now a moot point - every thing is based on 2020 status.  Further, TT is yet to be programmed for the 2nd payment, so that $2400 will move to $3600 once it updates.  Look at Line 30 of Form 1040

Does that help?  

[BLK982]

Thanks.  When you say " wait for it to be updated" do you mean Turbo Tax?  Also, we did receive $600 for the second stimulus but no money from the first stimulus.  I'm guessing TT will ask about both programs.

Thanks again.

[Opus 17]

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@BLK982 wrote:

Thanks.  When you say " wait for it to be updated" do you mean Turbo Tax?  Also, we did receive $600 for the second stimulus but no money from the first stimulus.  I'm guessing TT will ask about both programs.

Thanks again.

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Correct both times.  Turbotax needs to be updated.  The IRS has not formally released the new form 1040 to account for the second payment and revised calculation.  Supposedly, Turbotax will open for e-filing on January 7, which means the program will have to be updated before then, but I wouldn't be surprised if it was delayed.  And the IRS won't open e-filing until January 27, so early returns just go into cold storage.

Turbotax will need to know the amounts you received for both EIP 1 and 2, in order to correctly calculate the amount of the rebate that is now owed.  It will be on line 30 of form 1040. 

[BLK982]

Yes it does help.  Thank you.  

[BLK982]

Thank you.  

[BLK982]

I think I didn't pay attention well enough to your answer but if my wife started 2020 w/o a SS # but received one in October 2020 how will the IRS decide on the stimulus for us?

Thanks,

[Opus 17]

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@BLK982 wrote:

I think I didn't pay attention well enough to your answer but if my wife started 2020 w/o a SS # but received one in October 2020 how will the IRS decide on the stimulus for us?

Thanks,

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Go back and read again.  The credit is based on your 2020 tax return.  If she is eligible on the 2020 tax return, you get the payment. 

[BLK982]

Thanks again.