Recovery Rebate Credit 2021

[badams_taxes]

Thank You All!

[Marbear54]

How to take off the stimulus $2800 that I included in my income somehow on my 2021 tax return?

[xmasbaby0]

@Marbear54 If you have NOT e-filed yet you can go to Federal Review and change the way you answered the quesiton for the recovery rebate credit to get the amount off of line 30.   But if you already filed you just have to wait for the IRS to correct it for you.  They will find your mistake and remove that money from your refund.

[DMarkM1]

The stimulus payments should not have been included in your income.  The amount is only entered as part of the Federal review to determine if you are owed missing stimulus amounts.  

You can find the interview questions by clicking on the "Federal Review" tab at the top of your TurboTax screen.  You also use the search function (magnifying glass icon) at the top right of your page.  You can enter "Stimulus" and select the "Jump to..." link at the top of the results.  

There you will be asked if you received the third round payment (1400/each) in 2021.  You would answer, "Yes" or "No".  If "Yes", you would then be asked to enter the amount received.  If you did not receive all of the third round stimulus that you are eligible for the missing amount would be added to your return as a Recovery Rebate Credit on line 30 of your form 1040.  

The amount of stimulus payment you already received is not added to your return at all.  It is not income and it will not decrease your refund or increase your tax. 

[badams_taxes]

Thank you!

[Auntiecece]

Here's what I did WRONG:  I logged into my IRS account to see how much I was given in March 2021.  It showed $1400 so that is what I entered in TurboTax.  

What I should have done is checked my direct deposits.  IRS account only showed my HALF of the $2800, my husband would have to log into his IRS account to see his $1400 ($1400 x 2 = $2800).

I went back to my deposits in my checking account and sure enough, we did receive $2800 in March 2021, so the IRS letter was correct that we had already received the stimulus money.

My mistake, not the IRS!

[xmasbaby0]

@Auntiecece Thank you for posting that here.   We see so many users who made this same mistake but they blame TT and think TT "stole" their refund, etc. etc.   At last someone who "  'fesses up."   

[badams_taxes]

Good Afternoon!

I received a 2021 Form1099-G for:
box 2 - State or local income tax refunds, credits or offsets
box 3 - Box 2 amount is for tax year 2020

Does this mean I need to Amend Tax Year 2020?

Thank you!

[LenaH]

No, you do not need to amend your 2020 return. Your 1099-G needs to be entered on your 2021 return. The amount represents a refund you received from a state or local tax return. 

If all three of the following are true, your refund counts as taxable income:

• You itemized deductions last year, instead of taking the standard deduction
• You claimed state and local income taxes (not general sales taxes)
• Claiming the deduction helped you increase your federal refund or lower your tax bill

To enter your 1099-G, please follow the instructions below:

1. With your return open in TurboTax, select Income & Expenses to open the Income and expenses summary screen.
2. Scroll down to Other Common Income and select Show more.
3. Then select Start next to Refunds Received for State/Local Tax Returns. This will take you to Did you get a state or local tax refund? screen, answer Yes.
4. On the following screen, enter the info from your 1099-G and Continue.
5. If you have any other refund forms to enter, you can select + Add Another State or Local Tax Refund on the State and Local Tax Refund Summary screen. If not, select Done and answer a few more questions about your refund.

@badams_taxes

[badams_taxes]

Thank you so much!

[Danp1]

You posted a proper & correct question, but you did not get a proper answer.

I have a similar issue in trying to find out about why Turbo Tax is not asking me about the Recovery Rebate Credit (RRC) and not giving me any credit. 

I got a credit on line 30 in my 2020 taxes but nothing for this 2021 year, in spite of not getting ANY stimulus money in 2021, and having an AGI of $152,000 (per the guidelines I should be getting approx. $3000) 

Turbo Tax is not helping at all, I cannot find the RRC questioner or any explanation why I would not qualify. 

In fact, I'd like to post this question to the community but don't find a way to do it, except replaying to you. Hope someone will read this post. 

Thanks, 

Danp1 

[VolvoGirl]

To get to the stimulus questions in TurboTax at any time, you can search for stimulus or recovery rebate credit then hit ENTER and there should be a Jump to link

If you are trying to trigger it,
Click on Other Tax Situations at top
Click on Let's get started
Answer some questions then Continue
Then click on Let's keep going
Next screen is for the Third Stimulus, if you qualify

If you did not get prompted to enter your stimulus information, that means you either:

Filed as a dependent being claimed on another tax return, or
have an AGI too high to claim the recovery rebate

So better double check your AGI.  Do you have any dependents?  The 3rd Stimulus is 1400 per person.  So for Joint it would be 2800.  Why do you think it should be 3,000?  

If you got the credit on your 2020 return you should have received the 2021 stimulus payment.  Double check your bank accounts and check your IRS account (both if married) to see if the IRS sent you any.
https://www.irs.gov/payments/your-online-account

[Danp1]

Thanks VolvoGirl for your reply!

Yes, I'm trying to trigger it, your procedure does not work because there's no "Let's get started" button, just several Tax items including Other Tax Froms > Miscellaneous Tax forms which do not lead to the RRC form. 

I am not claimed as dependent in another tax (as far as I know, couldn't TT tell me?) and 

my AGI is ~ $152,000.

I estimate about $3000 in RRC credit because I do have 2 dependents, my wife and one daughter. 

I did get the credit in line 30 of 2020 return and did not get any money in my bank accounts (neither in 2020 nor 2021) 

Couldn't TT tell me what's going on? is it a secret?  

That's why I'd like to "trigger" the RRC in TT, do you know a sure way to do it? (btw, I'm using TT Premier) 

Thanks 

[DMarkM1]

Try lowering your adjusted gross income (AGI) to possibly trigger the stimulus questions.  

1. Revist the "Job/W2" topic  
2. Change box 1 on one of your W2s to maybe 1/2 of what it currently reads so that your AGI is much lower. 
3. Complete the interview all through "Wrap up income" at the bottom of the page.  
4. Then click the "Federal Review" tab at the top of your page  
5. Go through those questions to get to the stimulus questions.  

You could also try the search (magnifying glass icon) at the top of the page.  

1. Type in "Stimulus" in the search box and
2.  "Enter/return" 
3. There should be a "jump to...link" at the top of the results. 
4. Click that link to go directly to the stimulus section.

You might also try:

1. "Tax Tools" in the left hand menu
2. "Tools"
3. "Topic Search" in the main screen
4. Type in "Stimulus" in the top box
5. Select "Stimulus" from the list
6. "Go"

After answering the those stimulus questions don't forget to go back and put your W2 box 1 entry to the correct amount.  

[VolvoGirl]

Your wife is not a dependent.  Go back to My Info and check she is added as your spouse and you are filing together as  Married  JOINT.