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Not applicable
posted Feb 28, 2021 7:42:02 AM

Is Turbotax Stimulus Calculation Accurate?

I am seeing this for couple in their 70's. 

 

"Let's double-check the amount you received

 

Based on the tax info you entered and your combined adjusted gross income of $155,962, you and Mary are eligible for the following stimulus payments:

 

First-round:       $2,400

Second-round: $1,200"

 

Shouldn't these start phasing at out AGI $150,000 and be amounts less than the above?

 

Using TT Deluxe Desktop Windows

 

0 2 632
1 Best answer
Expert Alumni
Feb 28, 2021 8:10:51 AM

I cannot see your tax return but I suspect that you are seeing this statement because TurboTax suspects that you may be eligible for a stimulus payment reduced by 5% of the amount by which your AGI exceeds the applicable threshold.

 

IRS FAQ under Who’s eligible for the second round of Economic Impact Payments? states:

 

Generally, if you’re a U.S. citizen or U.S. resident alien, you may be eligible for $600 ($1,200  for a joint return), plus $600 for each qualifying child, if you (and your spouse if filing a joint return) aren’t a dependent of another taxpayer on a 2019 tax return, have a social security number (SSN) valid for employment 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 status

Your payment will be reduced by 5% of the amount by which your AGI exceeds the applicable threshold above.

 

After you enter the actual amounts of stimulus payments received, what answer does TurboTax arrive at?

2 Replies
Expert Alumni
Feb 28, 2021 8:10:51 AM

I cannot see your tax return but I suspect that you are seeing this statement because TurboTax suspects that you may be eligible for a stimulus payment reduced by 5% of the amount by which your AGI exceeds the applicable threshold.

 

IRS FAQ under Who’s eligible for the second round of Economic Impact Payments? states:

 

Generally, if you’re a U.S. citizen or U.S. resident alien, you may be eligible for $600 ($1,200  for a joint return), plus $600 for each qualifying child, if you (and your spouse if filing a joint return) aren’t a dependent of another taxpayer on a 2019 tax return, have a social security number (SSN) valid for employment 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 status

Your payment will be reduced by 5% of the amount by which your AGI exceeds the applicable threshold above.

 

After you enter the actual amounts of stimulus payments received, what answer does TurboTax arrive at?

Not applicable
Feb 28, 2021 8:27:20 AM

@JamesG1 Thank you. It looks like the form is calculating it correctly. They should put reduced amounts on that screen since they have already have the AGI there.