Married in 2019, received 1st stimulus check (bot not for wife), didn't receive 2nd - what to do?

[bhuether]

Hi,

My wife is a non resident alien. We just received her ITIN in February, and since the issuance of that ITIN was a first step before the IRS forwarded our joint 2019 tax return for processing, the IRS had no record of our 2019 return as of Feb 2021.  I understand that is likely the reason for us not receiving the 2nd stimulus payments.

Also, when I received the 1st stimulus, I guess the IRS used my single 2018 return, since I hadn't submitted our 2019 joint return.  But since we married in 2019, does that suggest I should receive a first stimulus payment for my wife via a Recovery Rebate Credit? If so, can I do that somehow via my 2020 return that I am about to do in Turbo Tax, or would I need to do that as part of a 2019 return amendment?

Regarding the 2nd stimulus, as part of my 2020 return do I tend to that likewise via the Recovery Rebate Credit?

Ideally trying to square this all away in one return, and trying to understand the mechanics.

thanks!

[JotikaT2]

It depends.

The stimulus payment amounts issued in 2019 or in January 2020 were based upon your 2018 or 2019 income tax returns filed.

The amount of the Rebate Recovery Credit is based upon your actual 2020 income tax return you file.  Therefore, if you meet the criteria for the credit, you will receive it when you prepare your 2020 income tax return.  The credit is intended to give those who should have received a stimulus payment but never did a tax credit on their tax returns.  Any excess credit is then refunded to you if there is an overpayment on your tax return. 

This credit is used to cover both the first and second stimulus payments issued in 2020.

Please see the attached link for more information on who can claim the credit.

Recovery Rebate Credit eligibility

When you prepare your 2020 income tax return, be sure to do the following to ensure the credit is calculated correctly on your income tax return.

In the Federal section, select the Federal Review interview section at the top of the screen.

This will take you to the input section for the Recovery Rebate credit.

Be sure to indicate the actual amount of each stimulus payment you received on the page that asks if you received a stimulus payment. 

There will be two boxes and both need to be completed.  If you did not receive any stimulus payments, please indicate We didn't get a stimulus payment by checking that box.

[bhuether]

Thanks for the note. Turbo Tax took me through the federal interview section about the stimulus payments, but I now understand that my wife having an ITIN makes us ineligible to both receive the payments. So the TurboTax process added $600 for me (I received $1200 in April 2020) for second stimulus, and for third stimulus, I suppose I can expect $1400. Didn't realize til today the finer details regarding spouse with ITINs.