Issue to claim the full amount of the 2nd stimulus payment ($1200)

[gshforever]

Hi, I got the full 1st stimulus payment (direct deposit) as $1200 in Apr 2020, both for my wife and myself ($2400). We did married joint filing. Didn't get the 2nd stimulus payment (reason most likely: we filed 2019 tax married joint return very late on 2020.7.15, by paper way, and it was processed very very slow. We received the Federal tax refund in early 2021 by check (took about 7 months). I assume IRS didn't have our 2019 tax return information at the moment the 2nd $600 stimulus payment was being issued, so we missed it. This year, we received the 3rd full stimulus payment, $1400 for each and $2800 in total, for both my wife and myself by check (we assume IRS had our 2019 information by that time, so it's issued smoothly).

Now, we're filing tax return for the year 2020. Since we didn't receive 2nd stimulus payment ($600/each, $1200 today), I thought it will be fully credit ($1200). However, it looks like TurboTax calculated the missing stimulus payment based on the latest 2020 tax return information we entered, which reduced the amount to only around $350 in total. For my understanding, we're qualified to received the full 2st stimulus payment ($1200), because we even received the full 3rd stimulus payment already. The 2st stimulus payment is supposed to depend on the 2019 tax return, right? But TurboTax doesn't do that way, looks like, and there's no place I can enter the missing number manually by myself. Wondering how I can get the full 2st stimulus payment through TurboTax. 

Thanks.

[AmyC]

No, if you did not receive the stimulus, then you must file for the Recovery Rebate using your 2020 income. See Economic Impact Payments | Internal Revenue Service.  The penalty is on you since you filed your 2019 late. You do not qualify now.

[gshforever]

Thanks a lot. I'm fine it's base on 2020 return to claim the missing 2nd one partially, if that's the case.

"The penalty is on you since you filed your 2019 late." - I just filed 2019 return on the dealine day, still not late, right. That's how I got the full 3rd payment. What do we mean by penalty here? 

Thank you.

[KathrynG3]

Just to be clear on how to claim missing stimulus payments as the Recovery Rebate Credit, follow these steps:

1. Go to the search box and enter stimulus. Click the Jump to link.
2. Answer Yes.
3. At the next screen, Let's double-check the amount you received, answer No to edit the first-round and second-round amounts.
4. If no stimulus amount was received, enter 0. An amount must be entered in each box. When finished, click Continue.

Secondly, the comment about the penalty meant the difference between what could have been claimed using 2019 income versus what will be claimed using 020 income.

Had the 2019 tax return been filed, those values would have been used to determine the amount of the stimulus payment. However, if it was not filed by the deadline of July 15, 2020 or the extended deadline of October 15, 2020, then the second stimulus payment must be claimed on the 2020 tax return and use 2020 income.

For more information about eligibility and calculation of the second stimulus payment, see:

Questions and Answers about the Second Economic Impact Payment | Internal Revenue Service

[VolvoGirl]

So do you qualify for the full 2nd Stimulus payment 1,200 BASED on your 2020 AGI?  Did you see the screen with 2 boxes to enter what you already get for #1 and #2?  You put 2400 in box 1 and enter 0 in box 2?

If Turbo Tax didn't give you the full 1200 on line 30 you must have phased out based on 2020.  Is your AGI over 150,000?  Generally, if you have adjusted gross income up to $75,000 for individuals and up to $150,000 for married couples filing joint returns and surviving spouses, you will receive the full amount of the recovery rebate.  For filers with income above those amounts, the payment amount is reduced. 

If your AGI is over the limit, the amount of your payments is reduced by $5 for every $100 over the limit.  So, your credit may be a weird amount.  

[gshforever]

Thanks a lot. My question is: Shouldn't the 2nd stimulus payment depends on the 2019 AGI? My wife started working 2020, so our 2020 AGI is a little bit more than 150k. Our 2018 and 2019 AGI was under 150k, that's why we have got 1st stimulus payment and 3rd stimulus payment.

We did file 2019 return on time, by the deadline 2020.07.15, through TurboTax (printed and paper mailing though).

Please help clarify.

[xmasbaby0]

You say your 2020 income was above $150K----that affects your stimulus amount.     When you use the recovery rebate credit on your 2020 return, the credit is based on your 2020 income.  The IRS is not going backwards now and using either your 2018 or 2019 income.   They had to get those first checks out in a hurry so they used the information from 2018 or 2019; but the checks were an advance on a credit you get on your 2020 return.   If you made more in 2020 you do not have to pay back anything you already got, but if your 2020 income is over the threshold, you get either a phased out amount or maybe nothing on the recovery rebate credit.

A1. Generally, if you are a U.S. citizen or U.S. resident alien, you will receive an Economic Impact Payment of $1,200  ($2,400  for a joint return) if you (and your spouse if filing a joint return)  are not a dependent of another taxpayer and have a Social Security number valid for employment and your adjusted gross income (AGI) does not exceed:

• $150,000  if married and filing a joint return
• $112,500 if filing as  head of household or
• $75,000  for eligible individuals using any other filing status
  Your payment will be reduced by 5% of  the amount by which your AGI exceeds the applicable threshold above.

You are not eligible for a payment if any of the following apply to you:

• You may be claimed as a dependent on another taxpayer’s return (for example, a child or student who may be claimed on a parent’s return or a dependent parent who may be claimed on an adult child’s return).
• You do not have a Social Security number that is valid for employment.
• You are a nonresident alien.
  The following are also not eligible: a deceased individual or an estate or trust.