Received first stimulus check with correct amount, but not qualified nor received second check. Turbo gives me an $2970 credit which is incorrect. How do I proceed ?

[JamesG1 · Accepted solution]

Review the numbers that you entered into the software as stimulus payment 1 and stimulus payment 2.  Make sure that you enter what was actually received for yourself, your spouse and your dependents.

If you have not received one or more of your stimulus checks, you may receive your payment in the form of a Recovery Rebate Credit on line 30 of your 2020 Federal tax return when you file.

TurboTax will compare your one or two stimulus payment amounts to the computations within TurboTax.  The computations within TurboTax are based upon the information that you have entered into the tax software.  If you are due an additional amount, it will be issued as a Recovery Rebate Credit (RRC) on line 30 of the 2020 1040 tax return.

If you believe that the Recovery Rebate Credit (RRC) on line 30 of the 2020 1040 tax return is not correct, then you should: 

• Check the amounts entered for stimulus check 1 and stimulus check 2, and
• Make sure that you have correctly entered your dependent information. 

If there is a difference, it is in one or both of these situations. 

In TurboTax Online, you are prompted to input stimulus check 1 and stimulus check 2 information under Review down the left hand side of the screen.

You can also access your stimulus check choices by following these steps: 

• Down the left side of the screen, click on Federal.
• Across the top of the screen, click on Other Tax Situations.
• At the screen Let’s keep going to wrap up.  Click on Let’s keep going.
• At the screen Let’s make sure you got the right stimulus amount, click Continue.
• At the screen Did you get a stimulus payment? you can update your stimulus check entries. 

See also this TurboTax Help.

Are you able to print or view your 2020 Federal 1040 tax return?  In TurboTax Online, follow these directions. 

• Down the left side of the screen, click on Tax Tools.
• Click on Tools.
• Under Other helpful links, click on View Tax Summary.
• Down the left side of the screen, click on Preview My 1040 to see the actual tax return that you prepared.
• Down the left side of the screen, click Back to return. 

 You can print or view your full tax returns prior to filing after you have paid for the software. 

• Down the left side of the screen, click on Tax Tools.
• Click on Print Center.
• Click Print, save or preview this year's return.
• Click Include government and TurboTax worksheets.

Does line 35a of form 1040 show a refund?  Does line 30 of the 1040 show a Recovery Rebate Credit?  This is the stimulus payment that TurboTax computed.

[verner]

In 2019, my adjusted gross income qualified me for a $448 first stimulus check but my AGI exceeded the qualifications for the second stimulus check, per my calculations and confirmed by Turbos help aid.  The $2970 credit that Turbo is calculating  is based on 2020 AGI but is not applicable.  I did not qualify for the second stimulus check and if I did they would of used my 2019 AGI as they did for the first check.  My Dependents are correct in Turbo Tax with just my wife and I filing jointly.  We are both over 75 and retired.  

How do I proceed?

[DianeW777 · Accepted solution]

It is applicable. And you should be able to proceed after your review the following information.

The stimulus payments sent out in 2020 were based on the 2019 tax return and income on that return.  However the payments are intended to be reconciled on the 2020 return, using the income for 2020.  This means that if you qualify for more of the stimulus money it will be a credit on your tax return by using the IRS Recovery Rebate Credit.

As long as you have recorded the payment received in the stimulus section of the return, you should be confident the end results are correct.

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 TurboTax will determine whether you are entitled to any additional stimulus
5. Any stimulus amount remaining due to you will show as a credit on line 30 of your form 1040.
6. See the image below for assistance.

[verner]

Sorry, but the inputted information on my return that you sent back was "work around" inputs that I used to eliminate the tax credit I was receiving.  I have gone back and placed the correct information information in the return which is "yes" for receiving stimulus money and $447.70   stimulus money on the first check and  on the second check.  Then I updated by return which reflects the $2900+ tax credit for your review.

Now what I am missing is what DianneW777 points:  "The stimulus payments sent out in 2020 were based on the 2019 tax return and income on that return.  However the payments are intended to be reconciled on the 2020 return, using the income for 2020.  This means that if you qualify for more of the stimulus money it will be a credit on your tax return by using the IRS Recovery Rebate Credit."

Using my 2020 income, we do qualify for a second stimulus check and should receive the credit.  I you concur please confirm.  Jerry Verner Bradford

[DaveF1006]

Please view this IRS link and read the section entitled Who is eligible for the second Economic Impact Payment? This stimulus payment is based off of 2019 income.

[verner]

Thank you for your assistance!!  Stay safe and warm!!  Verner