How to fill out Recovery Rebate Credit Worksheet.

[9639]

My wife and I file a joint return, our income is under $150k, we received the stimulus amounts of $2400 and $1200. The recovery form doesn't explain what to do very well. Should we leave lines 5 & 8 at zero or enter the amount we received from the stimulus?

If left at zeros for lines 5&8, our refund is $2883.

If I enter $2400 and $1200, the refund goes to $5283, or a plus $2400.

What the correct way? The form doesn't explain what to do.

[xmasbaby0]

Congress passed the 2nd stimulus bill at the end of 2020. Both stimulus checks were an advance credit for your 2020 tax return,  The 2nd stimulus checks started going out at the very end of December 2020 and continued into early January 2021.  When you fill out the recovery rebate credit it is important for you to enter the entire total of the amount you have received for yourself, your spouse, and your dependent children so far.   Entering the wrong amount might delay your 2020 refund.

It should help you if you bear in mind that the purpose of the question is to determine if you have already received the amounts you should have received.

[JamesG1]

I assume you mean lines 5 and 8 of the Recovery Rebate Credit Worksheet. You should enter into the software the amounts that you received in stimulus payment 1 and stimulus payment 2.

TurboTax will compare your one or two stimulus payment amounts to the computations within TurboTax.  The computations within TurboTax are based upon the information that you have entered into the tax software.  If you are due an additional amount, it will be issued as a Recovery Rebate Credit (RRC) on line 30 of the 2020 1040 tax return. 

In TurboTax Online, you are prompted to input stimulus check 1 and stimulus check 2 information under Review down the left hand side of the screen.

You can access your stimulus check choices by following these steps:  

• Down the left side of the screen, click on Federal.
• Across the top of the screen, click on Other Tax Situations.
• At the screen Let’s keep going to wrap up.  Click on Let’s keep going.
• At the screen Let’s make sure you got the right stimulus amount, click Continue.
• At the screen Did you get a stimulus payment? you can update your stimulus check entries.

[Barossa44]

I am just filling in mine. I am single and have received both payments of $600 each - the amounts I am entitled to. I fill in $600 in the boxes for the payments received and the software tells me I have a $600 credit. That doesn't seem right????

[xmasbaby0 · Accepted solution]

The first stimulus check was $1200.  The second one was for $600.

[JamesG1]

Stimulus payment 1 was $1,200 and stimulus payment 2 was $600.  So if you entered $600 + $600 = $1,200 for the stimulus payment amounts that you received, the software says that you are eligible for a Recovery Rebate Credit on line 30 of your 2020 Federal tax return.

If you have not received one or more of your stimulus checks, you will receive your payment in the form of a Recovery Rebate Credit on line 30 of your 2020 Federal tax return when you file.

TurboTax will compare your one or two stimulus payment amounts to the computations within TurboTax.  The computations within TurboTax are based upon the information that you have entered into the tax software.  If you are due an additional amount, it will be issued as a Recovery Rebate Credit (RRC) on line 30 of the 2020 1040 tax return. 

In TurboTax Online, you are prompted to input stimulus check 1 and stimulus check 2 information under Review down the left hand side of the screen.

You can access your stimulus check choices by following these steps:  

• Down the left side of the screen, click on Federal.
• Across the top of the screen, click on Other Tax Situations.
• At the screen Let’s keep going to wrap up.  Click on Let’s keep going.
• At the screen Let’s make sure you got the right stimulus amount, click Continue.
• At the screen Did you get a stimulus payment? you can update your stimulus check entries.

[9639]

Dear JamesaG1,

$2400 and $1200  stimulus amounts have already been received. By entering the these amounts on line 5&8 increases my refund by $2400. This just doesn't make sense. We get another $2400?

[ErnieS0]

Did you enter your stimulus payments in line 16 and line 19?

Line 16 (EIP 1) will be $2,400 and line 19 (EIP 2) will be $1,200.

Line 16 will cancel out Line 5 and Line 19 will cancel out Line 8 so your Rebate Recovery Credit on Line 21 will be $0.

[Cristylee01]

Where do I find the "Recovery Rebate Credit" to get the correct $2800.00. The wife and I are under the $150,000.00. We got $1405.00

[ErnieS0]

The Recovery Rebate Credit amount appears on line 30 of Form 1040. It is calculated on the Recovery Rebate Credit Worksheet.

TurboTax includes the form. You can also find a copy in the IRS Form 1040 instructions at Recovery Rebate Credit Worksheet-Line 30.

[xmasbaby0]

@Cristylee01 The recovery rebate credit has nothing to do with stimulus check #3 for the $1400 per person.   That is completely separate and you do not enter anything on your 2020 tax return about that.   The recovery rebate credit is ONLY for stimulus checks #1 and #2-----the 2020 ones for $1200 for adults and $500 for children under the age of 17, and the 2nd one that was for $600 per person.   Do not put anything for stimulus #3 on your tax return.

[Jhedding6294]

Hello!!

I was just looking at my 2020 taxes. Something made me think of this 

I am married, filling jointly all years. On all 2 stimulus, was the max payout. I have 2 kids 

I never received stimulus 2 though. So I was just wondering if when my tax guy filled out the rebate recovery worksheet, if he entered the wrong info for that line bc I never received it stimulus number 2 that’s why he was filling that out. He ended up with 2400 on line 21. But we were not going to owe any money and without this rebate recovery added to our taxes m, every year we get back around $2500 same taxes taken out. So without getting The stimulus number 2 and our usual amount back would of been close to $5000 instead was only $2038 not even the rebate stimulus amount 

[Jhedding6294]

I think my tax guy filled out the wrong info for the rebate recovery worksheet.. we never received our second stimulus money that’s why he was filling that out. We get the same taxes taken out and every year end up getting a refund of $2500. So we didn’t get the second refund and we only got back $2038.00. I think he put the wrong info down for the worksheet can you help me? 

[xmasbaby0]

@Jhedding6294 You say a "tax guy" prepared your 2020 return, so we cannot see it.   Look at your Form 1040 for 2020.   Is there an amount on line 30?   If you  got any stimulus money for your 2020 return that is where it would be shown.   If you  did not receive the 1st and/or 2nd EIP payment then your 2020 return would have to be amended to get it.  Your "tax guy" would need to do that for you.