amending tax return to add recovery rebate credits

[ab184466]

Hi I've perused around for a while and didn't see anyone that seemed to be in my particular situation so ill start a question thread. I'm amending my 2020 return to add a W2 and change my filing status to no one claimed me as a dependent because it was a mistake. While doing this I realized I qualify for all 3 stimulus checks since I wasn't a dependent in 2020. But all the Q&A forums for TurboTax seem to only show me how to get rebate credits when filing. Long story short, how would I file for my recovery rebate credits (I think all 3 would be around 3.4-3.6 K) when amending my tax return. Thanks in advance for any help!

[flytiger]

The most important thing is to get your 2020 and 2019 tax returns corrected with amendments.  This is a common mistake for former dependents to make: assuming they're still dependents when they're not.    TurboTax will take care of the first two stimulus payments as you do this on the 2020 return.  Your stimulus payments will be added to your 2020 refund. 

My understanding is that the first 2 stimulus payments were based on your 2019 tax return.  So, make sure of your correct status for 2019, first.  You may need to file an amendment for 2019 is that year is incorrect and then, file an amendment for 2020. You may get an unexpected 2019 surprise additional refund with any changes for 2019, which I would assume could affect your stimulus payments.

The 3rd stimulus would be based on you 2020 return after its filed, as corrected.

[DanaB27]

If you didn't receive the first or second stimulus payment then you will need to claim the Recovery Rebate Credit on your 2020 tax return.

If you didn't claim the Credit and need to make changes to your return then you will need to file an amended tax return (Form 1040-X). Please see FAQ How to amend a tax return for instructions. It is best to wait until your original return has been processed before starting an amended return. You can e-file your 2020 amended federal tax return.

Please see Where's My Amended Return? to check the status of your amended return.

To claim the credit in TurboTax, please follow these steps when you are amending your 2020 tax return:

1. Log into TurboTax.
2. After entering all your information 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.  If you did not receive a payment enter "0".
5. TurboTax will then calculate the amount of stimulus payment remaining that you are still entitled to get. 
6. Any stimulus amount remaining due to you will show as a credit on line 30 of the 1040.

To be eligible for the Recovery Rebate Credit you need to be a U.S. citizen or U.S. resident alien in 2020 and have a Social Security number that is valid for employment.

You cannot be claimed as a dependent by someone else to be eligible (please see Who can I claim as my dependent? for details).

Your credit amount will be reduced if your 2020 adjusted gross income (AGI) is more than: 

• $150,000 if married and filing a joint return or filing as a qualifying widow or widower
• $112,500 if filing as head of household or
• $75,000 for eligible individuals filing as a single or as married filing separately.  

Your payment will be reduced by 5% of the amount by which your AGI exceeds the applicable threshold above. (IRS FAQ Recovery Rebate Credit )

The third round of Economic Impact Payments will be based on the taxpayer's latest processed tax return from either 2020 or 2019. If the IRS has received and processed a taxpayer's 2020 return, the agency will instead make the calculation based on that return.

Please see How will the third stimulus impact me? for additional information.

[ab184466]

I dont see where this federal review button is?

[NCperson]

it's near the end of the tax return process.  but if you didn't receive any stimulus to date, it's going to be a zero in any event.

most importantly, what is on line 30 of Form 1040.  You should see $1800 there. 

[NCperson]

@flytiger - there is no need to amend 2019 (or 2018) for the first two stimulus payments,

the stimulus were 'advances' against 2020.  2019 (and in some cases 2018) was just used as the estimate and the IRS paid out that amount in stimulus.

but the information on the 2020 tax return is what is important in terms of income, dependents to calculate the 'recovery credit'.

if the recovery credit less the stimulus already received is positive, you get the difference on Line 30.

if the recovery credit less the stimulus already received is negative,  you do not owe it back to the IRS and line 30 will be zero.  Line 30 can NEVER be negative. 

DO NOT AMEND 2019 (or 2018) TO OBTAIN STIMULUS.  Simply file 2020 and anything due will be on Line 30. 

the 3rd stimulus payment works similarly.  It is an advance against 2021.  So whatever is calculated next year to determine the recovery credit less what ever was received for the 3rd stimulus is what is owed (and if negative, then nothing is owed back).  Whatever is on the 2020 tax return (or 2019) won't matter. 

make sense?  

[ab184466]

I don't see it anywhere at the end of the amendment process, and it doesn't say anything on my return. That's what I'm trying to amend. I think it was on the original return but at the time I didn't know what it was and just skipped over it.

[NCperson]

now I understand..... I would expect that the IRS 'knows' that you are eligible for the Recovery Rebate because you are changing your filing status to CAN NOT be claimed as a dependent. 

by the way, as you didn't explain your whole situation, if someone CAN claim you but didn't, then the box still needs to be checked that someone CAN claim you.  if NO ONE CAN claim you, you are fine to amend.  

suggest sending in the amendment and dealing with it the IRS doesn't send you the 1st two stimulus payments.  You might enclose a letter explaining that while you are amending you are expecting the $1800 for the first two stimulus payments.  

[ab184466]

Thanks so much, big thanks to NCPerson you've been the most help; I realized I had the wrong option checked and it wasn't popping up at the end of the review. I fixed it and the IRS already accepted my return. Thanks a lot you were a big help!

[khallad]

I missed the recovery rebate credit as well and I can't fix it. what option did you uncheck so that the federal review will appear? Thanks in advance

[NCperson]

@khallad - how did you miss it? what is on Line 30 of your tax return? 

[khallad]

0, I the question about stimulus check never showed up to me until I change the dependency status, now I fixed it and successfully amended my tax return. Thanks for replying

[Julina]

I have the same problem where I already filed, and didn’t know about recovery rebate credit.  And then later found out that my parent didn’t claim me as dependent in 2019 and I qualify for the 1st 2nd and 3rd stimulus checks. I need someone to let me know how to claim the credit on the amend . 🤷🏻‍♀️

[NCperson]

@Julina  - what happened in 2019 is irrelevant.... what happened in 2020 is all that matters...

1) did your parents claim you in 2020? 

2) did you check the box indicating that someone else CAN claim you on your 2020 tax return?

3) what is on Line 30 of your 2020 tax return?  

[Skywayguy]

I'm a parent and just completed my tax return for 2020.  This was first time that I could not claim my two sons as dependents on my return. They finished college and we're living at home looking for full time jobs while working full time.  They earned more than $4300 so we're not dependents but did not receive any stimulus checks .  They efiled early and I recall telling them they were a dependent on mine, but now find they weren't.  Should they file amended return to show they were not claimed as a dependent and hopefully receive full stimulus for 2020?