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

[DoninGA]

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@BAR1799 wrote:

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?

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The software is correctly adding the $600 EIP2.  Someone who passed away in calendar year 2020 and was otherwise eligible can receive both EIP1 and EIP2.

[JohnnyK911]

It is doing the same for me.   It is not adjust for my child in 2019 so if I file with Turbo Tax it will cost me $1100.  I called customer support and they stated this is a problem and nothing they can do.  I am going to have to use another program or do them myself.  

[VolvoGirl]

The Stimulus payment was based on 2019 but it really was an Advance for 2020.  The Recovery rebate credit is reconciled on your 2020 return.  Are you claiming your child on 2020?  Or if you have a high income on 2020 you might have maxed out and can't get anymore.

If you do not qualify for the Recovery Rebate Credit because of your 2020 tax situation then you will not be able to get the missed stimulus payment.

[ThomasM125]

@JohnnyK911 Your stimulus payments are based on what you file on your 2020 tax return. To calculate the amount of your recovery rebate credit, you have to first calculate what your stimulus payment should be based on your 2020 tax return, then subtract what you actually received.

[dereddys]

I am married filing joint and have a 17 year old dependent. 

I received $2900 as part of 1st stimulus and 

I am expecting $1800 as part of 2nd stimulus payment which I didn't receive as my 2019 returns were not yet processed by IRS. I want to apply for a recovery credit of $1800 on my 2020 returns. 

But, Turubotax is coming up with just $1200 for me and my wife and not including my 17 year old.

How can I correct this amount on tax return. 

[KathrynG3]

Please return to the stimulus payment area of the return and report what has been received. Keep in mind that once your son turned 17, he was no longer eligible for the first or second stimulus payment. 

To report that the second stimulus payments were not received, use the Recovery Rebate Credit. To do this in TurboTax, 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. Report the first stimulus payments as received in full. Since no stimulus amount was received, enter 0 for the second stimulus payment. An amount must be entered in each box. When finished, click Continue.

For the most recent IRS updates, see:

Coronavirus Tax Relief and Economic Impact Payments

Recovery Rebate Credit Frequently Asked Questions | Internal Revenue Service

[VolvoGirl]

@dereddys   Sorry if you son was 17 as of December 31, 2020 he does not qualify for the 1st or 2nd Stimulus payments.  It is really based on your 2020 return. If you got the first one for him you don't have to pay it back.

You should get the 3rd new one $1,400 for him. No age limit on this new one.  Unless your income is too high.