Its calculating the incorrect amount for the stimulus check recovery rebate credit. Is there a way to adjust?

[wgg_1234]

its calculating for the first check only and not the second stimulus check.

[SusanY1]

TurboTax has been recently updated to reflect both payments.  If you are not seeing the option to provide both amounts in Federal Review please update your software, if using Desktop software.

• • In TurboTax for Windows, select Check for Updates from the Online menu.
  • In TurboTax for Mac, select Check for Updates from the TurboTax menu.

If you are an online TurboTax user, your software should update automatically.  However, it may be necessary to log out of TurboTax, clear your browser cache & cookies, and log back in to ensure you are seeing the most up-to-date version of the program.

You will claim the Recovery Rebate Credit in TurboTax by answering the two questions about the stimulus payments that will appear at the end of the TurboTax interview. 

The questions are in the section Federal Review.  

Once the information is entered you will see your refund increase or balance due decrease, and TurboTax will enter the amount of the credit on Line 30 of Form 1040 for you.

[Ch211]

Turbos tax is not giving me the correct stimulus credit.  It should be $1200 not $600  I have a dependent child. My second stimulus was sent to a closed account provided by turbo tax.  How can this get corrected?

[Irene2805]

If you changed your bank account or if your account was closed, your bank has to reject this payment and send it back. We are working with the IRS and Treasury to find an alternative way to deliver your stimulus payment.

If you were eligible for the first or second stimulus payment but did not receive the full amount you qualify for, you’ll be able to get the missing funds as a tax credit when you file your 2020 taxes. TurboTax will guide you through the process.

To do this in TurboTax, please follow these steps:

1. Enter the information in your return.
2. 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. 
5. TurboTax will then calculate the amount of stimulus payment remaining that you are still entitled to.  This will show as a credit on line 30 of the 1040.

[jdandl]

I am filling out a return for my mother-in-law, who died in August.  She got the first stimulus check, but not the second because she was not alive in December.  I entered the correct information that she got the 1200 check, but not the 600 checki.   Turbotax then credited her with $600 even though she should not get it. 

Major bug in your software.

I faked it out by entering that she got both checks just so I could complete the return.

[DMarkM1]

The TurboTax calculations are correct.  Deceased taxpayers who died after January 1, 2020 are eligible for the Recovery Rebate Credit on their 2020 tax return.  The credit amount will be any amounts not received in rounds one and/or two.  So in your mother-in-law's case the $600 not received for round two would be correct.  

Here is a link with more information on the Recovery Rebate Credit.  See Topic B, question B12.  

[kenh9652]

2019 AGI over $150000 but turbotax premier still wants to show that we are entitled to the 2nd stimulus payment of $1200.  Only way to correct this error was to override the 1200 and zero it out.  Turbotax Premier didn't like the override, but otherwise we would have received an additional $1200 in our refund that we would then have to send back at some point in time.

[KathrynG3]

The purpose of the Recovery Rebate Credit is to calculate what you are eligible for using 2020 income and circumstances. If your income is now below $150,000, you could qualify. The credit is reduced but not eliminated for amounts over $150,000 for married filing jointly.

The rate of phase out is 5% of the amount your AGI exceeds $150,000. Adjusted Gross Income is found on Line 11 of Form 1040.

Upon review, if you should have received the credit after all,

• Do not amend the return if the Recovery Rebate Credit was included in the filing. The IRS will make the calculation adjustment for you.
• Do amend the return if the Recovery Rebate Credit was not included in the filing.
  • How do I amend my 2020 TurboTax Online return? The amendment can be e-filed once Form 1040-X becomes available. The only states that offer e-file for amended returns are currently Georgia, Michigan, New York, and Vermont. Otherwise, the corresponding state amended return must be paper filed.

For more information, see:

Recovery Rebate Credit Frequently Asked Questions | Internal Revenue Service

@kneh9652

[kenh9652]

Why is it that every IRS document I can find says the 2nd stimulus is based on 2019 income, which in my case is considerably above the cutoff, my 2020 isn't but I find that every time I use the IRS calculator to determine eligibility it says I am not entitled, yet TurboTax says I am.  There is nothing that says to use 2020 AGI.  I am going to file with it says I am supposed to receive it as per your instructions, however, I do not agree with your statement regarding use of 2020 AGI.

[DoninGA]

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@kenh9652 wrote:

Why is it that every IRS document I can find says the 2nd stimulus is based on 2019 income, which in my case is considerably above the cutoff, my 2020 isn't but I find that every time I use the IRS calculator to determine eligibility it says I am not entitled, yet TurboTax says I am.  There is nothing that says to use 2020 AGI.  I am going to file with it says I am supposed to receive it as per your instructions, however, I do not agree with your statement regarding use of 2020 AGI.

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The Recovery Rebate Credit is based on your 2020 federal tax return, filing status and 2020 AGI.

Go to this IRS website for the Recovery Rebate Credit - https://www.irs.gov/newsroom/recovery-rebate-credit

If we issued you the full amount of each Economic Impact Payment, you won’t need to claim the Recovery Rebate Credit or include any information related to it when you file your 2020 tax return because we already issued your Recovery Rebate Credit as Economic Impact Payments.

If you’re eligible for the credit, and either we didn’t issue you any Economic Impact Payments or we issued less than the full amounts, you must file a 2020 tax return to claim the Recovery Rebate Credit even if you are not required to file a tax return for 2020.

Economic Impact Payments were based on your 2018 or 2019 tax year information. The Recovery Rebate Credit is similar except that the eligibility and the amount are based on 2020 information you include on your 2020 tax return.

[kenh9652]

thank you, now I finally understand it is a different requirement!!  Doesn't fall under Stimulus

[sammygirl2013]

My recovery Credit is only $600.00 why.  

My software has been updated.  I'm single 74 years old and my AGI is $57,695.

The Federal Review asks Did you receive any stimulus payments (my answer)   Yes

Next screen asked if you received  First Round $1200.00 : Second Round $600

Next question is this what you received   MY ANSWER  NO

What did you receive;

First Round (April to November) I received $1200 

Second Round (December to Feb21, 2021) my answer is 0

Turbo Tax came up with $600.  Why am I not qualified for the whole $1,400.  stimulus money.

[DoninGA]

---

@sammygirl2013 wrote:

My recovery Credit is only $600.00 why.  

My software has been updated.  I'm single 74 years old and my AGI is $57,695.

The Federal Review asks Did you receive any stimulus payments (my answer)   Yes

Next screen asked if you received  First Round $1200.00 : Second Round $600

Next question is this what you received   MY ANSWER  NO

What did you receive;

First Round (April to November) I received $1200 

Second Round (December to Feb21, 2021) my answer is 0

Turbo Tax came up with $600.  Why am I not qualified for the whole $1,400.  stimulus money.

---

The Recovery Rebate Credit on the 2020 federal tax return only apply to EIP1 and EIP2 so the $600 is correct.

The third stimulus payment of $1,400 will be sent by the IRS to the bank account on file with the IRS at a later date.

[BAR1799]

The application does not take into consideration if the person is deceased.  My mother passed in October 2020 therefore received the $1200 stimulus and did not receive the $600 stimulus distributed in December.  I filled in the form appropriately stating that she received the $1200.  When the application calculates the credit due, it is not seeing that my mother had passed during the year and therefore is giving her a $600 credit.

How do we correct this so that the taxes are filed properly?

[VolvoGirl]

Good new, she still gets it!  For deceased individuals see the second question under Eligibility.  If they died in 2020 they still get it.

https://www.irs.gov/coronavirus/second-eip-faqs