Did Not Receive Third Stimulus, Yet Turbo Tax Wants to Give $2800 Credit

[Emiguy]

When I answered question about 3rd stimulus check in 2021, I said no. Yet Turbo Tax says my wife and I are entitled to $2800 credit, which increases our 2021 refund by $2800.

Our gross income for 2021 was $115,000 and our gross income in 2020 was $225,000 (cap gain on sold property). We filed our 2020 tax return on Feb 5, 2020 before the third stimulus checks were issued. 

What is not clear to me is for the third stimulus check, what tax year was it based on?

On the Internet answers I get answers that IRS used gross income data when sending out third stimulus.

So if I filed Feb 5 2021, which gross income did the IRS use? Turbo Tax says I get the $2800 credit.

Can someone advise if Turbo Tax is right in my case. 

Thanks,

James Engles

[xmasbaby0 · Accepted solution]

The 3rd stimulus payment is based on your 2021 income.   Some people received the 3rd EIP based on 2020 returns because the IRS was sending those checks out in a hurry,   But it was an advance based on your 2021 income.  If your 2021 income meets the criteria it is correct for you to get it with your 2021 return.

Who’s eligible for the third Economic Impact Payment? (updated  March 30, 2021)

Generally, if you’re a U.S. citizen or U.S. resident alien, you are eligible for $1,400 ($2,800  for a joint return), plus $1,400 for each qualifying dependent, if you (and your spouse if filing a joint return) aren’t a dependent of another taxpayer on a 2020 tax return, have a valid Social Security number (SSN) (see exception when married filing jointly and exception for qualified dependents) 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 statuses, such as single filers and married people filing separate returns.

Payments will be phased out – or reduced -- above those AGI amounts. This means taxpayers will not receive a third payment if their AGI exceeds:

• $160,000 if married and filing a joint return or if filing as a qualifying widow or widower
• $120,000 if filing as head of household or
• $80,000 for eligible individuals using other filing statuses, such as single filers and married people filing separate returns.

For example, a single person with no dependents and an AGI of $77,500 will normally get a $700 payment (half the full amount). A married couple with two dependents and an AGI of $155,000 will generally get a payment of $2,800 (again, half the full amount). Filers with AGI of at least $80,000 (single and married filing separately), $120,000 (head of household) and $160,000 (married filing joint and surviving spouse) will get no payment based on the law.

You aren’t eligible for a payment if any of the following apply:

• You could be claimed as a dependent on another taxpayer’s 2020 tax return
• You’re a nonresident alien.
• You don’t have a valid SSN issued to you by the due date of your tax return (including an extension to October 15 if you request it).

Also, payments will not be made to estates or trusts or for individuals who died before January 1, 2021. 

[Sab762]

Turbo tax also said I should've reviewed third stimulus. My income for 2021 did not exceed 75000 it was significantly lower, I filed married filing separately however. IRS says I did not qualify for this and removed it from my return after submitting it. I myself didn't know anything about s third stimulus and am kind of annoyed turbo tax said I qualified if I really didn't.

[xmasbaby0]

@Sab762 No one can see your return or your account.   Lots of people have been making mistakes with the 3rd stimulus and have "forgotten" they received the stimulus check.   If you said on your return that you did not receive the $1400 but you really did receive it, then the IRS removes it from your refund.   Check your banking records to see if you had deposits of $1400 per person last year.   Or check your online account with the IRS/

https://www.irs.gov/payments/your-online-account

If the IRS shows that you got that payment and you did not ever receive it then you can have them put a trace on it for you.

LOST THIRD STIMULUS CHECK

https://www.irs.gov/newsroom/questions-and-answers-about-the-third-economic-impact-payment-topic-j-p...

[Sab762]

That's the thing though. I didn't. I even went back and looked. I only got the first two. I never got a third. I didn't even know there was a third. I thought that's when the crap for kids started and I don't have any yet.

[Sab762]

I did however get married but we do not together make over the 75000 listed either. And we're filing separately. I haven't been able to even verify my identity through the new Id me website that everything is using IRS website included. It's only recognizing my maiden name which doesn't exist legally anymore. I recently contacted them to see what to do about that. 

[xmasbaby0]

When you get the confusion over the name on your Social Security card sorted out, then try again to check the IRS online account for your Social Security number to see if they sent you a 3rd EIP payment that you did not receive.  That payment was for $1400 and may have been sent to you at any time after about mid-March of 2021.

[DMarkM1]

If you meet the criteria as outlined by @xmasbaby0 from the IRS FAQ on the third Economic Impact Payment and stated below and you did not already receive the payment, you do qualify.  You will likely get a letter from the IRS explaining the change.  The letter will have instructions on what to do if you disagree with the changes. 

You may also want to check the IRS portal here to find out if the IRS records indicate they sent you the payment.   If that is the case here is a link with instructions on initiating a trace.  

Generally, someone was eligible for the full amount of the third Economic Impact Payment if they:

• are a U.S. citizen or U.S. resident alien (and their spouse if filing a joint return), and
• are not a dependent of another taxpayer, and
• had adjusted gross income (AGI) that is not more than:
  • $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 any other filing status

[JoshyBoiii]

Seriously, it said I was eligible and the IRS said nah. I also didn’t get the third stimulus and don’t know WHY im not eligible. IRS note says my name and social was wrong but how are the sending me the refund of 1,000 some if it’s incorrect? Was at 2,000 some btw…

[xmasbaby0]

@JoshyBoiii

Try checking your online account with the IRS

https://www.irs.gov/payments/your-online-account

Does the IRS show that you received a $1400 stimulus or EIP check in 2021?   Did you receive it?   When you were asked on your tax return did you say no?   Was there $1400 on line 30 of your tax return?

If the IRS says you got $1400 last year but you did not receive it you can have it traced.

LOST THIRD STIMULUS CHECK

https://www.irs.gov/newsroom/questions-and-answers-about-the-third-economic-impact-payment-topic-j-p...

[davidscott59]

my wife and i never got our last stimulus checks. the irs would have snail mailed them to us, since they did not have our bank information. when turbotax asked if i got them. I said no. and entered zero. I finished my tax forms, and it showed I would get a refund. I then electronically filed .

a few weeks later I get notified of a deposit. I look at it online and see that it is much lower than what TT calculated!

Then about a week later I get this letter from the IRS stating they adjusted our return because there was a mistake. Basically I think they removed the $2800 from it. BUT we never got these! i even checked all my bank accounts!

when I look at TT help it shows that if you make less than $160k then you qualify. we had a combined $151k so TT added in the $2800. However! on the letter I got from the IRS, it clearly states that if you make more than $150K then you do NOT qualify for the stimulus money. thus the reason they removed it. Or, they think we already got the money...

So, bottom line, is Turbo Tax have a math bug in their calculations???? or is the IRS wrong? as the IRS thinks we got the checks! but we did not, so either they got lost, or stolen. I would call them, but sitting on the phone on hold for 6 hrs is no joy.

advise?

[VolvoGirl]

Double check your bank statements and Check your IRS account (both accounts if married)

Your Online Account | Internal Revenue Service

If the IRS thinks they sent it to you but you didn't get it request a trace for a missing third Stimulus payment

https://www.irs.gov/newsroom/questions-and-answers-about-the-third-economic-impact-payment-topic-j-p...

[davidscott59]

I thoroughly verified my bank accounts. But as I stated, the IRS would NOT be able to electronically pay me since they did not have any of my bank #s. they would have snail mailed it to me. Just like they did with the previous 2 checks.

And as for my IRS account. I will NOT create an ID.Me account. doing so will provide every single personal information available for identity theft! I do not trust the government (or their contractors) to manage our personal information securely. and neither should you! I work in the IT world, I know dam well how easy it is to get into server data.

I guess I will just sit on the IRS phone line in hopes somebody will connect so I can put a trace on this.

[VolvoGirl]

@davidscott59   You don't have to log in to start a trace.  There is a different phone number listed lower down on that link.  Are you calling this one?  

To start a payment trace:

• Call us at 800-919-9835
• Mail or fax a completed https://www.irs.gov/pub/irs-pdf/f3911.pdf  

[ivanasusko]

I am entitled to the 2021 $1400 stimulus, however I did not receive one even though I filed my income tax return. What is my course of action??