Will my AGI be changed due to the unemployment tax credit, and will i receive the remainder of the third stimulus check?

[xmasbaby0]

https://www.irs.gov/newsroom/questions-and-answers-about-the-third-economic-impact-payment-topic-c-p...

[kathyryan28]

It's now February and I still haven't received mu unemployment plus up payment from 2020

[Vanessa A]

To check the status of your unemployment plus up payment, you would need to contact the IRS at 800-829-1040.  They are the only ones who can tell you the status of any payments that you have not received.

[MTJF5860]

Doingmy 2021 return and not asked about stimulus payment 3

[MTJF5860]

My agi was 76340 then I got the credit  for uneployment 10200 which made my agi 66140

[xmasbaby0]

@MTJF5860 The question about the 3rd EIP payment appears in Federal Review for the recovery rebate credit.   if you are not being asked about it either you said you can be claimed as someone else's dependent for 2021 or your 2021 income is too high to be eligible.

[xmasbaby0]

@MTJF5860 The 3rd EIP payment is not based on your 2020 income now.   It is based ONLY on your 2021 income.   People who received it based on 2020 do not have to pay it back, but if you are trying to get it as a recovery rebate credit it is only based on your 2021 income

Who’s eligible for the third Economic Impact Payment? (updated  March 30, 2021)

Generally, if you’re a U.S. citizen or U.S. resident alien, you are eligible for $1,400 ($2,800  for a joint return), plus $1,400 for each qualifying dependent, if you (and your spouse if filing a joint return) aren’t a dependent of another taxpayer on a 2020 tax return, have a valid Social Security number (SSN) (see exception when married filing jointly and exception for qualified dependents) and your adjusted gross income (AGI) does not exceed:

• $150,000 if married and filing a joint return or if filing as a qualifying widow or widower
• $112,500 if filing as head of household or
• $75,000 for eligible individuals using any other filing statuses, such as single filers and married people filing separate returns.

Payments will be phased out – or reduced -- above those AGI amounts. This means taxpayers will not receive a third payment if their AGI exceeds:

• $160,000 if married and filing a joint return or if filing as a qualifying widow or widower
• $120,000 if filing as head of household or
• $80,000 for eligible individuals using other filing statuses, such as single filers and married people filing separate returns.

For example, a single person with no dependents and an AGI of $77,500 will normally get a $700 payment (half the full amount). A married couple with two dependents and an AGI of $155,000 will generally get a payment of $2,800 (again, half the full amount). Filers with AGI of at least $80,000 (single and married filing separately), $120,000 (head of household) and $160,000 (married filing joint and surviving spouse) will get no payment based on the law.

You aren’t eligible for a payment if any of the following apply:

• You could be claimed as a dependent on another taxpayer’s 2020 tax return
• You’re a nonresident alien.
• You don’t have a valid SSN issued to you by the due date of your tax return (including an extension to October 15 if you request it).

Also, payments will not be made to estates or trusts or for individuals who died before January 1, 2021. 

[ajsteinjr]

How is that fair just because I filed my 2020 tax year Turbotax return a week before the unemployment compensation exclusion went into law and reduced my AGI below the 75K threshold after I filed. I received my appropriate refund for the unemployment compensation exclusion calculation on my already filed 2020 tax year return, but I never received a third stimulus check based on this modified 2020 AGI when 2020 AGI is a legitimate qualification for the stimulus. And now I can't use the 2021 Recovery Rebate Credit to claim my $1400 because the calculation now has changed to using 2021 AGI (which for me is above 80K)? Who did that, why, and is that fair?

[KrisD15]

No one is claiming that it is fair, only that this is the way the law was written. 

The IRS does not see it as "You deserve the credit" they see it more as "Someone else does not have to pay their stimulus payment back". 

[ajsteinjr]

More specifically and continuing:

Where (if anywhere) does it explicitly state that modified 2020 AGI due to the unemployment compensation exclusion cannot be a criteria to make you newly eligible for EIP3 while still in calendar year 2021 when the criteria is based on 2020 AGI? Thanks in advance for your understanding and hopeful response....

[KrisD15]

According to the IRS:

"Q1. What if I already filed my 2020 tax return and didn't qualify for the third round of Economic Impact Payment (EIP) or received less of it because of my AGI, will the payment now be sent to me if the unemployment compensation exclusion reduced my AGI and makes me eligible for the payment or for more? (updated September 15, 2021)

A1. No. Your third EIP is evaluated based on your originally filed tax return. We will not reevaluate or send more money after applying the unemployment compensation exclusion. If you didn't qualify for the payment or received less than the full amount based on your 2020 tax return, you may be eligible to claim the 2021 Recovery Rebate Credit when you file your tax return next year."

IRS LINK

[ajsteinjr]

Thanks. I have read all of that previously. I just thought that when it said that you "may" be able to obtain the EIP3 payment by claiming via the 2021 Recovery Rebate Credit, that I could do it that way. It took a very long time for me to learn that I couldn't because the 2021 Recovery Rebate Credit calculation uses 2021 AGI and my 2021 AGI is above 80K. I guess the IRS couldn't or didn't want to have to go back and recheck my modified AGI for 2020 for use toward EIP3 when they had to anyway to give me my refund for the unemployment compensation exclusion. I spent almost 5 hours on the phone with Turbotax customer support thinking this had to be a calculation logic error in the software. Your replies helped me to ultimately understand that the IRS changed the rules for EIP3 qualification by not allowing the unemployment compensation exclusion to count toward the eligibility. I wonder what would have happened with regard to EIP3 eligibility if I waited and filed my 2020 return after Turbotax calculated the unemployment compensation exclusion for me. In any case, you're probably right about the IRS view of all of this. I just wish it was more straightforward to ultimately understand.....thanks again for your assistance.

[rcea]

I filed my tax return and it was rejected bc the adjusted gross income was incorrect.  159375.00 was when I filed it the first time before unemployment was adjusted.  I used the after unemployment adjustment of the 144,000.00 and it was rejected?  Does anyone know which we use. I thought we would use the one on the records when they adjusted it.

[DMarkM1]

It normally would be the adjusted amount however IRS systems may not have updated with the correction.  Try the original AGI.  You can also use this link to check the IRS records for your prior year AGI in the IRS system.