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New Member
posted Jan 6, 2021 9:15:05 PM

Its calculating the incorrect amount for the stimulus check recovery rebate credit. Is there a way to adjust?

its calculating for the first check only and not the second stimulus check.

0 21 2026
21 Replies
Expert Alumni
Jan 8, 2021 5:25:26 PM

TurboTax has been recently updated to reflect both payments.  If you are not seeing the option to provide both amounts in Federal Review please update your software, if using Desktop software.

    • In TurboTax for Windows, select Check for Updates from the Online menu.
    • In TurboTax for Mac, select Check for Updates from the TurboTax menu.

If you are an online TurboTax user, your software should update automatically.  However, it may be necessary to log out of TurboTax, clear your browser cache & cookies, and log back in to ensure you are seeing the most up-to-date version of the program.

You will claim the Recovery Rebate Credit in TurboTax by answering the two questions about the stimulus payments that will appear at the end of the TurboTax interview. 

 

The questions are in the section Federal Review.  

 

Once the information is entered you will see your refund increase or balance due decrease, and TurboTax will enter the amount of the credit on Line 30 of Form 1040 for you.

New Member
Jan 8, 2021 8:35:30 PM

Turbos tax is not giving me the correct stimulus credit.  It should be $1200 not $600  I have a dependent child. My second stimulus was sent to a closed account provided by turbo tax.  How can this get corrected?

Expert Alumni
Jan 11, 2021 10:15:26 AM

If you changed your bank account or if your account was closed, your bank has to reject this payment and send it back. We are working with the IRS and Treasury to find an alternative way to deliver your stimulus payment.

 

If you were eligible for the first or second stimulus payment but did not receive the full amount you qualify for, you’ll be able to get the missing funds as a tax credit when you file your 2020 taxes. TurboTax will guide you through the process.

 

To do this in TurboTax, please follow these steps:

  1. Enter the information in your return.
  2. Click Federal Review at the top of your screen. 
  3. On the screen, Let's make sure you got the right stimulus amount, click Continue.
  4. You will be asked about the amounts of first round and second round stimulus payments you received
  5. TurboTax will then calculate the amount of stimulus payment remaining that you are still entitled to.  This will show as a credit on line 30 of the 1040.

Level 1
Feb 13, 2021 11:34:40 AM

I am filling out a return for my mother-in-law, who died in August.  She got the first stimulus check, but not the second because she was not alive in December.  I entered the correct information that she got the 1200 check, but not the 600 checki.   Turbotax then credited her with $600 even though she should not get it. 

 

Major bug in your software.

 

I faked it out by entering that she got both checks just so I could complete the return.

 

 

Expert Alumni
Feb 14, 2021 6:21:44 AM

The TurboTax calculations are correct.  Deceased taxpayers who died after January 1, 2020 are eligible for the Recovery Rebate Credit on their 2020 tax return.  The credit amount will be any amounts not received in rounds one and/or two.  So in your mother-in-law's case the $600 not received for round two would be correct.  

 

Here is a link with more information on the Recovery Rebate Credit.  See Topic B, question B12.  

 

New Member
Mar 8, 2021 11:51:16 AM

2019 AGI over $150000 but turbotax premier still wants to show that we are entitled to the 2nd stimulus payment of $1200.  Only way to correct this error was to override the 1200 and zero it out.  Turbotax Premier didn't like the override, but otherwise we would have received an additional $1200 in our refund that we would then have to send back at some point in time.

Expert Alumni
Mar 8, 2021 12:09:51 PM

The purpose of the Recovery Rebate Credit is to calculate what you are eligible for using 2020 income and circumstances. If your income is now below $150,000, you could qualify. The credit is reduced but not eliminated for amounts over $150,000 for married filing jointly.

 

The rate of phase out is 5% of the amount your AGI exceeds $150,000. Adjusted Gross Income is found on Line 11 of Form 1040.

 

Upon review, if you should have received the credit after all,

  • Do not amend the return if the Recovery Rebate Credit was included in the filing. The IRS will make the calculation adjustment for you.
  • Do amend the return if the Recovery Rebate Credit was not included in the filing.

For more information, see:

Recovery Rebate Credit Frequently Asked Questions | Internal Revenue Service

 

 

@kneh9652

New Member
Mar 8, 2021 12:23:17 PM

Why is it that every IRS document I can find says the 2nd stimulus is based on 2019 income, which in my case is considerably above the cutoff, my 2020 isn't but I find that every time I use the IRS calculator to determine eligibility it says I am not entitled, yet TurboTax says I am.  There is nothing that says to use 2020 AGI.  I am going to file with it says I am supposed to receive it as per your instructions, however, I do not agree with your statement regarding use of 2020 AGI.

 

 

Level 15
Mar 8, 2021 12:26:12 PM


@kenh9652 wrote:

Why is it that every IRS document I can find says the 2nd stimulus is based on 2019 income, which in my case is considerably above the cutoff, my 2020 isn't but I find that every time I use the IRS calculator to determine eligibility it says I am not entitled, yet TurboTax says I am.  There is nothing that says to use 2020 AGI.  I am going to file with it says I am supposed to receive it as per your instructions, however, I do not agree with your statement regarding use of 2020 AGI.

 

 


The Recovery Rebate Credit is based on your 2020 federal tax return, filing status and 2020 AGI.

Go to this IRS website for the Recovery Rebate Credit - https://www.irs.gov/newsroom/recovery-rebate-credit

 

If we issued you the full amount of each Economic Impact Payment, you won’t need to claim the Recovery Rebate Credit or include any information related to it when you file your 2020 tax return because we already issued your Recovery Rebate Credit as Economic Impact Payments.

 

If you’re eligible for the credit, and either we didn’t issue you any Economic Impact Payments or we issued less than the full amounts, you must file a 2020 tax return to claim the Recovery Rebate Credit even if you are not required to file a tax return for 2020.

 

Economic Impact Payments were based on your 2018 or 2019 tax year information. The Recovery Rebate Credit is similar except that the eligibility and the amount are based on 2020 information you include on your 2020 tax return.

New Member
Mar 8, 2021 1:36:26 PM

thank you, now I finally understand it is a different requirement!!  Doesn't fall under Stimulus

 

New Member
Mar 12, 2021 3:21:56 PM

My recovery Credit is only $600.00 why.  

My software has been updated.  I'm single 74 years old and my AGI is $57,695.

 

The Federal Review asks Did you receive any stimulus payments (my answer)   Yes

Next screen asked if you received  First Round $1200.00 : Second Round $600

Next question is this what you received   MY ANSWER  NO

What did you receive;

First Round (April to November) I received $1200 

Second Round (December to Feb21, 2021) my answer is 0

 

Turbo Tax came up with $600.  Why am I not qualified for the whole $1,400.  stimulus money.

Level 15
Mar 12, 2021 3:37:20 PM


@sammygirl2013 wrote:

My recovery Credit is only $600.00 why.  

My software has been updated.  I'm single 74 years old and my AGI is $57,695.

 

The Federal Review asks Did you receive any stimulus payments (my answer)   Yes

Next screen asked if you received  First Round $1200.00 : Second Round $600

Next question is this what you received   MY ANSWER  NO

What did you receive;

First Round (April to November) I received $1200 

Second Round (December to Feb21, 2021) my answer is 0

 

Turbo Tax came up with $600.  Why am I not qualified for the whole $1,400.  stimulus money.


The Recovery Rebate Credit on the 2020 federal tax return only apply to EIP1 and EIP2 so the $600 is correct.

The third stimulus payment of $1,400 will be sent by the IRS to the bank account on file with the IRS at a later date.

Returning Member
Mar 13, 2021 1:45:50 PM

The application does not take into consideration if the person is deceased.  My mother passed in October 2020 therefore received the $1200 stimulus and did not receive the $600 stimulus distributed in December.  I filled in the form appropriately stating that she received the $1200.  When the application calculates the credit due, it is not seeing that my mother had passed during the year and therefore is giving her a $600 credit.

How do we correct this so that the taxes are filed properly?

Level 15
Mar 13, 2021 1:49:25 PM

Good new, she still gets it!  For deceased individuals see the second question under Eligibility.  If they died in 2020 they still get it.

https://www.irs.gov/coronavirus/second-eip-faqs

Level 15
Mar 13, 2021 1:51:23 PM


@BAR1799 wrote:

The application does not take into consideration if the person is deceased.  My mother passed in October 2020 therefore received the $1200 stimulus and did not receive the $600 stimulus distributed in December.  I filled in the form appropriately stating that she received the $1200.  When the application calculates the credit due, it is not seeing that my mother had passed during the year and therefore is giving her a $600 credit.

How do we correct this so that the taxes are filed properly?


The software is correctly adding the $600 EIP2.  Someone who passed away in calendar year 2020 and was otherwise eligible can receive both EIP1 and EIP2.

New Member
Mar 23, 2021 4:13:33 PM

It is doing the same for me.   It is not adjust for my child in 2019 so if I file with Turbo Tax it will cost me $1100.  I called customer support and they stated this is a problem and nothing they can do.  I am going to have to use another program or do them myself.  

Level 15
Mar 23, 2021 4:25:14 PM

The Stimulus payment was based on 2019 but it really was an Advance for 2020.  The Recovery rebate credit is reconciled on your 2020 return.  Are you claiming your child on 2020?  Or if you have a high income on 2020 you might have maxed out and can't get anymore.

 

If you do not qualify for the Recovery Rebate Credit because of your 2020 tax situation then you will not be able to get the missed stimulus payment.

Expert Alumni
Mar 23, 2021 4:31:39 PM

@JohnnyK911 Your stimulus payments are based on what you file on your 2020 tax return. To calculate the amount of your recovery rebate credit, you have to first calculate what your stimulus payment should be based on your 2020 tax return, then subtract what you actually received.

 

 

New Member
Apr 10, 2021 11:29:45 PM

I am married filing joint and have a 17 year old dependent. 

I received $2900 as part of 1st stimulus and 

I am expecting $1800 as part of 2nd stimulus payment which I didn't receive as my 2019 returns were not yet processed by IRS. I want to apply for a recovery credit of $1800 on my 2020 returns. 

But, Turubotax is coming up with just $1200 for me and my wife and not including my 17 year old.

How can I correct this amount on tax return. 

Expert Alumni
Apr 11, 2021 5:45:44 AM

Please return to the stimulus payment area of the return and report what has been received. Keep in mind that once your son turned 17, he was no longer eligible for the first or second stimulus payment. 

 

To report that the second stimulus payments were not received, use the Recovery Rebate Credit. To do this in TurboTax, follow these steps:

  1. Go to the search box and enter stimulus. Click the Jump to link.
  2. Answer Yes.
  3. At the next screen, Let's double-check the amount you received, answer No to edit the first-round and second-round amounts.
  4. Report the first stimulus payments as received in full. Since no stimulus amount was received, enter 0 for the second stimulus payment. An amount must be entered in each box. When finished, click Continue.

For the most recent IRS updates, see:

Coronavirus Tax Relief and Economic Impact Payments

Recovery Rebate Credit Frequently Asked Questions | Internal Revenue Service

Level 15
Apr 11, 2021 8:28:05 AM

@dereddys   Sorry if you son was 17 as of December 31, 2020 he does not qualify for the 1st or 2nd Stimulus payments.  It is really based on your 2020 return. If you got the first one for him you don't have to pay it back.

 

You should get the 3rd new one $1,400 for him. No age limit on this new one.  Unless your income is too high.