HOW DO YOU RECEIVE THE 3RD STIMULUS CHECK IF YOU MADE LESS THAN 75K IN 2019 BUT THEN TURBO TAX PROCESSED YOUR 2020 RETURN (WHICH WAS MORE THAN 80K) BEFORE IRS ISSUED ?

[mike-d-lane10]

-TURBO TAX SAID THEY GUARANTEE THE MOST ON YOUR RETURN AND THE STIMULUS WAS AN ADVANCE FROM WHAT I UNDERSTAND. IF THEY ARE SUCH A LARGE COMPANY WITH MANY INTELLIGENT PEOPLE, THEY SHOULD HAVE NOTIFIED IN SOME WAY THEIR CUSTOMER WHO PROCESSED FOR A RETURN BY EDUCATING THEM ON THEIR OPTIONS. ONE WOULD THINK THAT THEY COULD RUN A COMPUTER PROGRAM TO DETERMINE WHO MAY BE IMPACTED BY THE FILING DATE.

[xmasbaby0]

Calm down.   The 3rd stimulus was an advance for a credit you can get on your 2021 tax return.  If you did not receive it based on your 2020 income you may still be eligible for it as a recovery rebate credit on your 2021 return.   You can go through the Review section of the 2021 software and see if the credit shows up on line 30 of  your 2021 Form 1040.

[VolvoGirl]

The 3rd Stimulus for 1,400 was an advance for your 2021 return and will be reconciled on your 2021 return we are filing now.  So if your 2021 income qualifies it will be added to your return.  Check  1040 line 30 for the Recovery Rebate Credit.  It doesn't matter what  your 2019 or 2020 income was.  The first 2 stimulus checks were based on 2020 returns.  

I don't understand what you think Turbo Tax could notify you about.  The date you file doesn't matter.  

[fanfare]

@VolvoGirl  @mike-d-lane10 

The date certainly does matter if 2021 AGI was over $75,000-$80,000 (Single).

If you filed early you missed out on the EIP3.

[xmasbaby0]

The IRS did not send out EIP #3 based on 2019 tax returns.   They used 2020 returns or they can use the 2021 return.   It seems that the above user had an income too high in 2020 to get the EIP based on 2020.   If the user's income for 2021 meets the eligibility criteria then user can receive the EIP as a credit (or perhaps receive a phased out amount--depending on 2021 income).

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. 

[VolvoGirl]

About the only think I can think of that the date might matter is if you filed 2020 early before the unemployment exclusion was passed.   Then the IRS  adjusted the returns and sent you the refund for it.  

[mike-d-lane10]

EIP#3 was sent out in March 2021. If you did not file your 2020 taxes yet, they used your 2019 taxes. I was unaware of what was going on with a 3rd round of EIP, and due to Turbo Tax marketing and lack of educational materials on what was going on politically, I made costly assumption I would not be impacted. Since I filed in Feb 2021, I missed out on $1400. Does anyone know if there is a way to recover that?

[mike-d-lane10]

Is there any way to qualify for that EIP#3 since the 2019 AGI was qualified but the 2020 was not? Some people who delayed filing were rewarded, and others were not?

[mike-d-lane10]

You give Turbo Tax too much benefit of the doubt. Do you really think a company, with the resources they have, didn't have awareness or the means to notify their paying users of the implications? Shame on Turbo Tax for not looking out for their users best interests (Accountants are in business to legally help people minimize their tax debt with strategies to get around paying the government.)

[fanfare]

"Is there any way to qualify for that EIP#3 "

Strictly speaking, you don't qualify for it, since it is a function of your 2021 AGI.

There's no way to reverse time's arrow.

[xmasbaby0]

What best interests?   What do you not understand about your eligibility for the 3rd EIP payment?   If you had more than $80K of income for 2020 you could not get the payment based on your 2020 tax return.   The IRS did not go backwards and issue those 3rd payments based on 2019 income.   You get it based on 2020 or 2021.  Period.  

[VolvoGirl]

As I said above the 3rd Stimulus payment was an advance for 2021.  It is really based on your 2021 tax return.  Not 2019 or 2020.   They just used the last tax return filed (2019 or 2020) to send out the checks fast.   If you qualify for it BASED ON YOUR 2021 return it will be added to your refund or reduce a tax due.  Check your 2021 1040 line 30.

I still don't understand what Turbo Tax could have told you.  The IRS is changing things every day.  The tax companies don't know what's going to happen or if the IRS makes something retroactive.

[fanfare]

@VolvoGirl 

" It is really based on your 2021 tax return."

You made an error and drew me into it.

It is your 2020 AGI, not 2021 AGI that qualifies you.

[xmasbaby0]

If the IRS used your 2020 AGI and gave you the EIP#3  after you filed a 2020 return, you do not have to pay it back if your 2021 AGI is higher than your 2020 AGI.      They were in a hurry to send out those checks, so lots of people got those checks after the IRS processed their 2020 returns.     So.....if you happened to have a lower AGI in 2020, got the money, and had a higher income in 2021---you got lucky and get to keep the money.

  But the 3rd EIP payment is really based on your 2021 income.   So if you are trying to get it as a recovery rebate credit, you have to meet the income criteria on your 2021 tax return.   If a single filer made more than $80K in 2021 they do not get the credit.

[VolvoGirl]

@fanfare  What error??

IRS Recovery rebate credit

Recovery Rebate Credit | Internal Revenue Service

It says......The third round of Economic Impact Payments was issued starting in March 2021 and continue through December 2021. The third round of Economic Impact Payments, including the plus-up payments, were advance payments of the 2021 Recovery Rebate Credit claimed on a 2021 tax return.