Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
cancel
Showing results for 
Search instead for 
Did you mean: 
Username5
Level 3

I believe TTax Stimulus tax credit calculation is incorrect

My wife & I received a few hundred dollar check in April for #1 Stimulus, it was based on my 2019 AGI.  I have not yet received the #2 stimulus and according to what I read, it will be based on my 2019 AGI and if so I clearly do NOT qualify for a second check.

 

In TTax if I enter 0 for the #2 stimulus it gives me a large tax credit based on my 2020 AGR.

 

How can this be correct if I have not yet filed my 2020 return and my last check was based on 2019 return and the IRS sez the second stimulus will be based on 2019 return.  I'd love to have that +3k credit but it does not smell right to me.  Since it seems that the IRS is not sending me a 2nd check (their site tells me I don't qualify) is TTax wrong in using my 2020 AGI for calculating a credit because I got no second check?

11 Replies
CatinaT1
Expert Alumni

I believe TTax Stimulus tax credit calculation is incorrect

The payments were an advance credit for 2020.  2019 information was used in sending out the payments since 2020 tax returns had not been filed at the point the stimulus payments were sent out.  They are being reconciled when you do your 2020 return.  In some cases, people may have not qualified based on their 2019 income but do qualify based on their 2020 income.  In these cases you will be eligible for the Recovery Rebate Credit.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
doc_wooster
Level 2

I believe TTax Stimulus tax credit calculation is incorrect

Turbotax is confusing us when it does the Recovery Rebate Credit. Our income exceeds the $150K threshold, and  it mistakenly says we should have received 1st and 2nd total payments of $2400 and $1200, which is wrong.  If I plug in what I actually received, it does compare that to what I should have received. based on 2020 earnings and computes the right credit.

I suggest it should just ask for the actual 2020 payments and then make the determination if a credit is due, 

JamesG1
Expert Alumni

I believe TTax Stimulus tax credit calculation is incorrect

Thank you for your input on the wording of the screen Let's double-check the amount you received.

 

You do believe that you received the correct Recovery Rebate Credit?

 

You can access your stimulus check choices by following these steps: 

  • Down the left side of the screen, click on Federal.
  • Across the top of the screen, click on Other Tax Situations.
  • At the screen Let’s keep going to wrap up.  Click on Let’s keep going.
  • At the screen Let’s make sure you got the right stimulus amount, click Continue.
  • At the screen Did you get a stimulus payment? you can update your stimulus check entries. 

TurboTax will compare your two payment amounts to the computation within TurboTax.  The computations within TurboTax are 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.

 

See also this TurboTax Help.

 

 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
doc_wooster
Level 2

I believe TTax Stimulus tax credit calculation is incorrect

Yes, we received checks that were correct, based on 2019 earnings, but less than the max of $2400 and $1200.  I've checked them across several online calculators. 

Turbotax is reconciling those payments with the actual 2020 income, and since we were lower, we should have gotten larger stimulus payments, but still not the max, I was not aware of the recovery rebates, so this was a nice surprise. The problem is that the TT dialogue says I should have received the maximum.

I am using the CD version, Perhaps it will be updated. I just saw a screen shot of the Stimulus dialog that is properly in my opinion. Perhaps that is the online version.

Username5
Level 3

I believe TTax Stimulus tax credit calculation is incorrect

The link you provided, to "Turbotax Help" which leads to a covid stimulus eligibility calculator is misleqding for 2020.  It wants 2019 info.  An earlier reply to this subject, and further reading of news articles indicates that if someone did not receive the 2nd payment, and/or if their 2020 return was filed prior to receiving a the 2nd payment then they may be eligible for a credit.  

 

This info is poorly communicated in the TTax program.  It is especially confusing for someone who in 2019 did not qualify but does qualify in 2020 if certain conditions are met.  I decided to go ahead and claim the credit and let the IRS sort it out if TTax happens to be incorrect.

JamesG1
Expert Alumni

I believe TTax Stimulus tax credit calculation is incorrect

@doc_wooster

So, do I understand correctly that:

  • Your 2020 income was lower than 2019 income, and
  • You did receive an additional amount on line 30 of the 2020 1040 tax return, but
  • You did not receive the full amounts of $2,400 and $1,200?

And finally, that you feel that the wording of the screen Let's double-check the amount you received needed to be revised?

 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
doc_wooster
Level 2

I believe TTax Stimulus tax credit calculation is incorrect

Here's a screen shot.  The payments of $2400 and $1200 are too high for  AGI of $161K. I don't have a problem with the numbers after I enter the actual payments, but this screen made me question TT.
ross.jpg

 

DaveF1006
Expert Alumni

I believe TTax Stimulus tax credit calculation is incorrect

What numbers did you actually record? Did you receive $2400 in the first round and $1200 in the second for Married Filing Jointly? I agree you are over the income levels for receiving stimulus money so if you were sent this by mistake, the IRS may settle the score but it's not Turbo Tax responsibility to be a watchdog in this capacity.

 

Besides, those checks are based off of your 2018 and 2019 income. Please refer to this Turbo Tax link for further details. 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
doc_wooster
Level 2

I believe TTax Stimulus tax credit calculation is incorrect

I give up, You're  missing the point. Look at this. Turbotax is still saying the same 2400 and 1200 payments for even higher AGI's.

I'm just saying to ask the user to enter the stimululus payment.

rossy.jpgjarvis.jpg

DianeW777
Expert Alumni

I believe TTax Stimulus tax credit calculation is incorrect

I think I understand.  You would prefer that TurboTax does not enter the assumed payments automatically (based on the 2020 income) before allowing you to enter what you actually received.  The amount actually received does not represent what TurboTax is calculating since the income is lower in 2020, than it was in 2019.  

 

I will pass this information forward. Meanwhile, you are entitled to the additional amount, once you answer 'No' to enter the correct amounts, because the stimulus was always intended to be reconciled on the 2020 return.

doc_wooster
Level 2

I believe TTax Stimulus tax credit calculation is incorrect

Thanks Diane. There are not that many people who exceed the $150K threshold, but it best that the dialogue match.

Been using TT for over 20 years,.

Dynamic AdsDynamic Ads
Privacy Settings
v