The system is using the wrong AGI to calculate my Recovery Rebate Credit. How do I edit the 2019 AGI to get the right RRC?

[xmasbaby0]

Sorry----you cannot get the recovery rebate credit based on your 2019 income now.   The RRC is based ONLY on 2020 income.   People who received the EIP payments based on 2018 or 2019 income do not have to pay it back if their 2020 income is higher, but if you did not receive the first or second EIP payment, the IRS is not going to go backwards now and use your 2019 income.   It is only based on 2020.

Eligibility for the RCC per the IRS:

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.

[VolvoGirl]

Are you trying to use the 2019 or 2020 AGI?

Sorry The first two rounds of Economic Impact Payments were advance payments of the 2020 Recovery Rebate Credit.

So 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.

See question 1 Eligibility

https://www.irs.gov/newsroom/recovery-rebate-credit-topic-b-eligibility

The eligibility requirements are the same for the Recovery Rebate Credit as they were for the Economic Impact Payments exceptthat the credit eligibility and the credit amount are based on your 2020 tax year information.

[VolvoGirl]

Unless you are thinking of the Earned Income Credit.

The special lookback rule will allow lower income individuals to use their earned income from 2019 to determine their Earned Income Tax Credit and the refundable portion of the Child Tax Credit in 2020, since their lower 2020 income could reduce the amount they are eligible for.

You may use your 2019 income for the Child Tax Credit if your 2019 earned income was morethan your 2020 earned income.  If your 2020  income was more than your 2019 income then you cannot use the 2019 income.

You can look back and use your 2019 income for the EIC credit instead of 2020. How to use the Lookback provision

https://ttlc.intuit.com/community/earned-income-credit/help/how-do-i-use-the-lookback-provision-to-m...

[bett137]

I am eligible according to the IRS.   I received a 2nd check but not the first.  I had not filed my taxes when the first stimulus check was sent out.  I read that since I had not filed my taxes, the IRS would use my 2019 AGI to calculate the 1st payment.   That is what I am trying to enter now so I can finish my 2020 taxes (I am in Texas and they are due today.)   But the software is entering a different amount than my 2019 AGI.  

[bett137]

I am eligible for the 1st and 2nd payments according to the IRS.   I received a 2nd payment but not the first.  I had not filed my taxes when the first stimulus check was sent out.  I read that since I had not filed my taxes yet, the IRS would use my 2019 AGI to calculate the 1st payment.   That is what I am trying to enter now so I can finish my 2020 taxes (I am in Texas and they are due today.)   But the software is entering a different amount than my 2019 AGI.  

[VolvoGirl]

You only enter the 2019 AGI at the end to verify you to efile.  Where else are you seeing a place to enter it?  You don't enter the AGI in the Recovery rebate credit section.

Just enter the amounts you did get and if you qualify for more it will be added to 1040 line 30.

Forget about 2018 and 2019.  The Stimulus Checks are really based on your 2020 return we are filing in 2021.  So any amount you already got will be reconciled on your 2020 return line 30.  If you didn't get a Stimulus Check (and qualify) or you qualify for more it will be added to your 2020 return.  But the good news is if they paid you too much they won't take it back.

When you go through the federal review tab it will ask how much you got if any.  Enter a 0 in the box if you didn't get one.  Or to enter your stimulus payment in TurboTax, type "stimulus" (without the quotes) in the Search box, then click the link that says "Jump to stimulus."

After you have entered your tax information and are ready for the Federal Review, it will be the first question.

If you are trying to trigger it, you can go to Other Situations, answer any questions and click Done. The next automatic selection is Federal Review and it will ask about payments received.

[bett137]

I'm not seeing a place to enter my 2019 AGI.  That is the problem   Turbo Tax is saying my credit is based on AGI of X, when my AGI was Y.  I'm trying to correct X to Y.   Thanks.  

[DoninGA]

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@bett137 wrote:

I'm not seeing a place to enter my 2019 AGI.  That is the problem   Turbo Tax is saying my credit is based on AGI of X, when my AGI was Y.  I'm trying to correct X to Y.   Thanks.  

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As has been stated several times, The Recovery Rebate Credit is based on your 2020 AGI.  It cannot be changed.

[DoninGA]

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@bett137 wrote:

I'm not seeing a place to enter my 2019 AGI.  That is the problem   Turbo Tax is saying my credit is based on AGI of X, when my AGI was Y.  I'm trying to correct X to Y.   Thanks.  

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IRS website - https://www.irs.gov/newsroom/recovery-rebate-credit-topic-b-eligibility

The eligibility requirements are the same for the Recovery Rebate Credit as they were for the Economic Impact Payments except that the credit eligibility and the credit amount are based on your 2020 tax year information. The Economic Impact Payments were based on your 2018 or 2019 tax year information.

Individuals who didn’t qualify for the Economic Impact Payments or did not receive the full amount of the recovery rebates as Economic Impact Payments may be eligible for the Recovery Rebate Credit based on their 2020 tax situation. 

[Critter-3]

Once again the RRC is based on the 2020 AGI ONLY and not anything from the 2018 or 2019 returns.  The program handles this correctly.   

When the stimulus payments were sent out in advance the first was based off the 2018 AGI  (or the 2019 if filed early enough to catch the cut off date) and the second was based off the 2019 AGI.  But when you reconcile this on the 2020 return the RRC uses only the 2020 AGI.

Now the third stimulus advance is based on the 2019  AGI  but if you got the payment before you filed the 2020 return and you qualify for more then they are sending out "PLUS UP" payments based on the 2020 AGI.  BUT ... if when you file the 2021 return the third stimulus will be reconciled yet again using the 2021 AGI so if you are eligible for more you will get it on the 2021 RRC.  

[VolvoGirl]

If you really want to change it then you will have to fill out the blank IRS forms by hand and insert your own amounts on the Recovery Rebate Worksheet.  BUT the IRS will just adjust it if you use the wrong amounts.

See 1040 Instructions page 59 for the Recovery Rebate Credit Worksheet
https://www.irs.gov/pub/irs-pdf/i1040gi.pdf