Will my EIP credit be reflected on this return?

[HelenC12]

If you didn't receive all or only received a portion of your Economic Impact Payment (IEP), you'll be able to reflect that in TurboTax.

1. Log on to TurboTax and start preparing your income tax return.
2. TurboTax will ask you to manually enter the actual amount you received in IEP, if any, as you're going through the federal review section.
3. If you didn't receive your IEP or only a portion of it, TurboTax will add the amount to your income tax return.

Per IRS: 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.

[Griff48]

I am using turbotax deluxe CD version. I am getting the message "We crunched the numbers and the amount you received looks right" We received $3600. Now the problem is this $3600 is not listed anywhere on our 1040 as a credit so turbotax thinks we owe money which we dont. When is this going to get corrected so that the correct tax amount is calculated. Again, the issue is there is no $3600 credit listed anywhere on my 1040. I called TurboTax and talked to somone who didnt understand what the issue is, he said I didnt qualify for the Recovery Rebate Credit because I received $3600. I know that!  Is the problem the IRS 1040 instructions and the 1040 form need to be updated for those of us who received $3600 so that it can be applied to our taxes?  By the way, I have been using Turbotax for over 20 years so this is not a newbie question. Long ago I had to use the Premier edition but now that I am retired my taxes are much simpler. 

[DoninGA]

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@Griff48 wrote:

I am using turbotax deluxe CD version. I am getting the message "We crunched the numbers and the amount you received looks right" We received $3600. Now the problem is this $3600 is not listed anywhere on our 1040 as a credit so turbotax thinks we owe money which we dont. When is this going to get corrected so that the correct tax amount is calculated. Again, the issue is there is no $3600 credit listed anywhere on my 1040. I called TurboTax and talked to somone who didnt understand what the issue is, he said I didnt qualify for the Recovery Rebate Credit because I received $3600. I know that!  Is the problem the IRS 1040 instructions and the 1040 form need to be updated for those of us who received $3600 so that it can be applied to our taxes?  By the way, I have been using Turbotax for over 20 years so this is not a newbie question. Long ago I had to use the Premier edition but now that I am retired my taxes are much simpler. 

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If the Total of EIP1 and EIP2 that you received was correct then nothing is entered on the federal tax return Form 1040 Line 30.  The Recovery Rebate Credit is only used for those who did not receive stimulus payments they were eligible to receive based on their 2020 federal tax return.  

[Griff48]

Where is my tax credit?  I got $3600 from the Federal government and it is supposed to be a tax credit. Well it is not being applied as a tax credit. 

Repeat, the $3600 credit is not being applied as a credit against the tax I owe. 

I know I am not supposed to put anything on line 30!!!!!!!!!!!!!!!!!!!!!!!

[Griff48]

I think the issue is the 1040 instructions and the 1040 form are wrong and turbotax only follows what the feds give you.

So think about it, if I didnt receive the $3600 , then it would be listed as a $3600 tax credit on line 30 and it would be deducted from the taxes owed. 

I received $3600 but there is no line item anywhere to indicated I received my tax credit AND to now deduct that amount from the taxes owed.  

[DoninGA]

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@Griff48 wrote:

Where is my tax credit?  I got $3600 from the Federal government and it is supposed to be a tax credit. Well it is not being applied as a tax credit. 

Repeat, the $3600 credit is not being applied as a credit against the tax I owe. 

I know I am not supposed to put anything on line 30!!!!!!!!!!!!!!!!!!!!!!!

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You cannot double-dip the stimulus payments you received.  If the payments you received were entered as a tax credit on your federal tax return, that would mean you received $7,200 from the US government for stimulus payments.  $3,600 as a stimulus payment and $3,600 as a tax credit.  A'int gonna happen.

[Griff48]

You dont get it either. Lets try this. What line is turbotax supposed to use to list the $3600 credit I already received? Its probably supposed to be on Schedule 3. But turbotax isnt listing anything in schedule 3. Turbotax knows I received the $3600 because I went through that dialogue. However, the info is not being transferred anywhere as a credit.  As I mentioned I do not qualify for the Recovery Credit because I got the money. I do qualify for a $3600 credit on some form somewhere. Which form and which line item is turbotax supposed to put this prepaid credit on?????

[DoninGA]

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@Griff48 wrote:

You dont get it either. Lets try this. What line is turbotax supposed to use to list the $3600 credit I already received? Its probably supposed to be on Schedule 3. But turbotax isnt listing anything in schedule 3. Turbotax knows I received the $3600 because I went through that dialogue. However, the info is not being transferred anywhere as a credit.  As I mentioned I do not qualify for the Recovery Credit because I got the money. I do qualify for a $3600 credit on some form somewhere. Which form and which line item is turbotax supposed to put this prepaid credit on?????

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You received the correct amount of payments, you do not get a credit anywhere on the 2020 federal tax return, period.

The Recovery Rebate Worksheet is on IRS Form 1040 (2020) Instructions page 58 - https://www.irs.gov/pub/irs-pdf/i1040gi.pdf#page=58

IRS Website for the Recovery Rebate Credit - https://www.irs.gov/newsroom/recovery-rebate-credit

Most individuals eligible for the Recovery Rebate Credit have already received the full amount in two rounds of payments, known as Economic Impact Payments.

If we issued you the full amount of each Economic Impact Payment, you won’t need to claim the Recovery Rebate Credit or include any information related to it when you file your 2020 tax return because we already issued your Recovery Rebate Credit as Economic Impact Payments.

If you’re eligible for the credit, and either we didn’t issue you any Economic Impact Payments or we issued less than the full amounts, you must file a 2020 tax return to claim the Recovery Rebate Credit even if you are not required to file a tax return for 2020.

Economic Impact Payments were based on your 2018 or 2019 tax year information. The Recovery Rebate Credit is similar except that the eligibility and the amount are based on 2020 information you include on your 2020 tax return.

You will need to know the amount of any Economic Impact Payments issued to you to claim the Recovery Rebate Credit. If you’re eligible for the Recovery Rebate Credit on your 2020 tax return, it will be reduced by any Economic Impact Payments we issued to you. Always be complete and accurate when you file a return.

[Griff48]

Then I would have been better off not getting any payment because now I would get a tax credit of $3600 applied to my 2020 taxes.   I got what as advertised as a prepaid tax credit to be applied to 2020.  Well I got $3600 but the forms have no way of capturing this information and to allow me to realize this as a prepaid tax credit and to list it as such on my 1040 form and/or my Schedule 3.      I will just wait until the IRS figures this out.  I will stop wasting your time.