Recovery Rebate Credit Worksheet

[Skididdy]

Hello,

I will be a first time TurboTax user this year. I will qualify for the recovery rebate credit as I did not receive any of my stimulus checks this year. I have completed the Recovery Rebate Credit Worksheet from the IRS website and see that my wife and I are due 3,600. I spoke with the IRS and they said that we should send the Recovery Rebate Credit Worksheet in with our taxes. Does TurboTax submit this Recovery Rebate Credit Worksheet form with our taxes this year?

I would appreciate any help that I can receive on this issue.

[MinhT1 · Accepted solution]

If you did not receive your first and/or second stimulus payment or if the amount received is not correct or if you did not receive the stimulus for a dependent child under age 17, you can claim it on your 2020 tax return as the Recovery Rebate Credit.

In TurboTax Online, to claim the Recovery Rebate credit please do the following:

1. Sign into your account and continue from where you left off
2. Click on Federal in the left-hand column, then on Federal Review on the top of the screen
3. On the next page titled Let's make sure you got the right stimulus amount, click on Continue
4. Follow the interview
5. TurboTax will determine whether you are entitled to any additional stimulus
6. Any stimulus amount remaining due to you will show as a credit on line 30 of your form 1040
7. The Recovery rebate credit worksheet will be attached to your e-filed return.

[lindseyhodgen]

What if I am entitled to the first child stimulus payment but it went to my child's noncustodial parent even though she lives with me for more than half the year? We claim her every other year so I claimed her in 2018 and he claimed her in 2019. He should not have received the payment because she has never lived with him for more than half the year. When I fill out the questions about how much I received in TurboTax, it tells me that looks right and doesn't bring up the Recovery Rebate worksheet. Is there another way to get it to allow me to use the worksheet? 

[DMarkM1]

Under current guidelines you both would be able to get credit for the child stimulus payment as long as the child is age 16 or younger. Whoever claimed the child (age 16 or under) in 2019 would have received the child stimulus payments based on that tax year return.  If parents are alternating years then the other parent would also be able to claim the child (age 16 or under) on the 2020 return and get the Recovery Rebate Credit. 

However, if the child turned age 17 in 2020 and that is the age showing on the 2020 tax return, then the child will not be eligible for that Recovery Rebate Credit child payment. 

Custodial and non-custodial issues are not addressed by the IRS in the Recovery Rebate process. 

Here is a link with more information on the Recovery Rebate.   

[Chriss1241]

Hi @DMarkM1,

Thanks for this information, as I was wondering this and I haven't been able to find much on the internet.

My ex-wife claimed our child in 2019 and she received the 2 stimulus payments.  I get to claim our child for 2020.  I am now remarried and had an additional child in 2020 that we are claiming for the 1st time.  

Just to confirm, when I put in that we received our 1st stimulus ($2400) and 2nd stimulus ($1200) through the right stimulus calculation in Turbo tax, it shows we will receive a credit of $2200.  That is correct?  I know it says the IRS will double check and I don't want to incorrectly claim anything.  But I also can't edit the amount in Turbotax.

I guess I just assumed we would only get the $1100 credit for our baby born in 2020.

[DMarkM1]

That calculation is correct.  Since your 2020 return has two children ages 16 or under and you did not receive stimulus payments for them in rounds one and/or two your Recovery Rebate Credit should be $2200.  

[Delperh]

So, my son was 16 when the stimulus check came out in 2020. We received funds for him. He turned 17 at the end of 2020. We also had a baby in 2020 who did not get the checks. The rebate calculator is removing my son and replacing him with our newborn and saying nothing further is owed. Shouldn't we receive an additional $1100 for our newborn though because he was 16 when the funds were sent? How can we fix this to reflect the additional $1100 owed?

[JamesG1]

The calculation appears to be correct.

The 2020 Federal 1040 tax return reconciles the two stimulus payments.  At the time of the reconciliation, the IRS is saying that the 17 year old was not eligible for either stimulus payment.  If you did not have the newborn child, you would not have been required to pay back the 'overpayment'.

The IRS question C1 says:

Those with qualifying children will receive up to an additional $500 per qualifying child. A qualifying child is a child who meets the conditions outlined on our Qualifying Child Requirements page.

One of the qualifications of a qualifying child is:

The child was under age 17 at the end of the taxable year.

[lamentor79]

Per Lindsey Hodgen, she asked, "When I fill out the questions about how much I received in TurboTax, it tells me that looks right and doesn't bring up the Recovery Rebate worksheet. Is there another way to get it to allow me to use the worksheet?"

I'm not sure if you answered her question specifically, but I have another issue with the recovery rebate credit. Upon completion of Smart Check, I am taken directly to "Let's work on your state refund." I did not even get the opportunity to check on missing stimulus money (which was extensive--only received a very small amount for 1st and haven't received a 2nd deposit). I am on SSDI, so I don't have a w-2, but have filed taxes every year. My 1st stimulus deposit came after verification through the Social Security Administration, but they could not/would not help me with the reasons for the small amount.

Can this be a software glitch or am I supposed to wait again for SSA to "clear" it for the IRS to make payment? As I understand, I should be able to claim the credit on my taxes (but for lack of access via TurboTax software, I don't have that option).

Please advise.

Thank you very much!

[KrisD15]

Seems the parent that claimed the child gets the stimulus.

"The child bonus will be received only by the parent who claimed the child on the tax return at issue. So if you are divorced and 2019 was the year your ex claims the kid, unfortunately you are out of luck."

Source

"The $500 stimulus increase per child is assumed to be directly associated with the Child Tax Credit that was claimed when you filed your taxes. Per your Divorce Decree, look to see who is to claim each child."

Soource

@lindseyhodgen

TurboTax online users cannot see worksheet until they pay and print the return. 

You can, however, see the amount that TurboTax has calculated:

TO VIEW THE RECOVERY REBATE CREDIT:

Click   Tax Home

Click   Review   if necessary to get Tax Tools on the left side-bar

Click   Tax Tools   on the left side-bar (you may need to use the scroll bar for the left side-bar to see this)

Click   Tools   on the drop-down list

Click    View Tax Summary   on the Tools Center screen

When you do this,   Preview my 1040   appears on the left side-bar           

Click   Preview my 1040   on the left side-bar

Scroll down and look at line 30 on the 1040 for your “Recovery rebate credit”

@lamentor79

[jaus432]

When I first ran through the Federal section of my taxes there was a Stimulus rebate worksheet. Since I did not receive a second stimulus payment in 2020 there was a credit on my federal taxes. I am now ready to file but the credit has disappeared and so has the worksheet.?????

Any comment????

[email address removed]

[Cynthiad66]

This is how you get back to the Recovery Rebate Credit document.  

• If you need to make any changes to your stimulus credit responses, search for stimulus and select the jump-to link at the top of the search results to return back to the section. Enter your updated info and Continue.

It’s important that you enter the correct amount of each stimulus payment you received. The first stimulus payments were made between April and September of last year, while the second round of payments were delivered during January and February. You can find the exact amount,

• On your IRS letter-Notice 1444 and/or 1444-B which were mailed to you with the headline, “Your Economic Impact Payment Has Arrived” and were signed by the president. Or,
• By visiting IRS.Gov and creating or accessing your account. Or,
• In your bank statements. You might be able to search your online statements for deposits made by the IRS or US Treasury.

[valprice7]

We are using TurboTax for Windows and I never saw any questions related to the stimulus.  Does the program ignore this if you don't qualify?  I also never saw this question when I did my son's return, and he definitely qualified.

[LenaH]

No. It will not skip over the recovery rebate form if you do not qualify. If your son qualified in 2020 based on the guidelines listed below, and did not get a credit on Line 30 of his 1040, then he will have to amend his return. The IRS will not calculate the 2020 Recovery Rebate Credit for you if you did not enter any amount on your original tax return.

If his e-file is still pending, he won't be able to make changes until the IRS either accepts or rejects his return. If his return is accepted, please follow the directions on the How do I amend my 2020 return? If his return is rejected, then you can add the Recovery Rebate Credit as he is fixing the other errors on his return. 

Please follow these steps to get to the recovery rebate form:

1. With your return open, search for stimulus with the magnifying glass tool on the top of the page.
2. Select the Jump to Stimulus in the search results to directly go to correct TurboTax page.

Please keep in mind that the Recovery Rebate Credit is calculated based on your 2020 income, whereas the stimulus payments were based your 2019 tax return or last return filed. If a taxpayers' situation changes in 2020, they could get a partial or the full stimulus payments based on their 2020 income. 

Per the IRS, your Recovery Rebate Credit amount will be phased out if your adjusted gross income for 2020 exceeds $75,000 if you filing single. The credit phases out at a rate of 5% for AGI's over 75,000. 

@valprice7 

[RICKinPA]

Can someone post how to correct the installed program version?

TT seems to say incorrect amount is correct.