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wallybird
Level 1

Is anyone having trouble with TurboTax using the incorrect AGI in calculating your Covid stimulus credit?

My understanding is TT should be using my 2019 AGI and it is not. I'm not sure where or how they got the AGI being used because it doesn't match any of my AGI's going back to 2014.
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DMarkM1
Expert Alumni

Is anyone having trouble with TurboTax using the incorrect AGI in calculating your Covid stimulus credit?

The Recovery Rebate Credit on your 2020 tax return is based on the 2020 AGI.  Your total eligibility amount will be based on the 2020 tax return information.  That eligibility amount will be reduced by any stimulus payments you received in rounds one and/or two.

 

So if you received reduced stimulus payments based on 2019 returns, but are eligible for the full amount based on your 2020 return, you will receive the difference as a credit on line 30 of your Form 1040.   

 

Here is a link with more information on the Recovery Rebate Credit.

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3 Replies
KrisD15
Expert Alumni

Is anyone having trouble with TurboTax using the incorrect AGI in calculating your Covid stimulus credit?

The stimulus is based on 2020 income. 

The first payments went out before 2020 was over, so they used 2019 income to get the checks out. 

The understanding is that, if the 2020 income makes you ineligible, you won't be liable for paying any of the stimulus you already received back. 

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wallybird
Level 1

Is anyone having trouble with TurboTax using the incorrect AGI in calculating your Covid stimulus credit?

In my case, my 2019 AGI resulted in a reduced stimulus payment because my wife and I's AGI was over the amount to qualify for the entire stimulus. However, our 2020 AGI is lower and if it is used then we do qualify for the entire amount which is an additional $1140. So do we actually qualify for the additional amount? I'm confused. I thought the stimulus was based on 2019 AGI.

DMarkM1
Expert Alumni

Is anyone having trouble with TurboTax using the incorrect AGI in calculating your Covid stimulus credit?

The Recovery Rebate Credit on your 2020 tax return is based on the 2020 AGI.  Your total eligibility amount will be based on the 2020 tax return information.  That eligibility amount will be reduced by any stimulus payments you received in rounds one and/or two.

 

So if you received reduced stimulus payments based on 2019 returns, but are eligible for the full amount based on your 2020 return, you will receive the difference as a credit on line 30 of your Form 1040.   

 

Here is a link with more information on 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"
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