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Amb718
Level 2

Recovery rebate credit for new baby

2019 taxes, I filed my 10 year old daughter as a dependent per a court order. Received both stimulus checks for both her and myself. I had a new baby in May 2020. This year for 2020 taxes, per the court order, I do not claim my 10 year old as a dependent but I do the new baby so I should be able to receive the recovery rebate credit for her. Once I get to that option, it ask if I received the correct amount on both checks, which the answer is yes for both my oldest daughter and myself but it does not update to receive to $1,100 credit for the new baby since I am not claiming my oldest this year. Everything else is correct on the tax forms, I called the irs and they have no idea how to help fix this to receive the rrc. It does work if my oldest is added a dependent but that’s not an option to claim her. I have also called TurboTax to speak with someone and am still unable to get it fixed. 

6 Replies
CatinaT1
Expert Alumni

Recovery rebate credit for new baby

The payments were an advance credit for 2020.  2019 information was only used in sending out the payments since 2020 tax returns had not been filed at the point the stimulus payments were sent out.  They are being reconciled when you do your 2020 return.  In some cases, people may have been given a stimulus payment based on their 2019 dependents that did not qualify based on their 2020 dependents, and vice versa. 

 

You received a stimulus payment for yourself and 1 dependent.  In 2020, you are filing a return for yourself and 1 dependent.  You should not have gotten a payment for your 10 year old daughter based on not claiming her in 2020.  You will not receive anything additional for a stimulus payment.

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Amb718
Level 2

Recovery rebate credit for new baby

Per customer service at turbo tax and also the IRS, the 2 stimulus checks received were based off of either 2018 taxes or 2019 taxes, whichever was filed at the time they were sent out. So I was correct to receive them for my 10 year old due to previous years taxes, so the recovery rebate credit should also be issued for my infant born in 2020 as well. 

Amb718
Level 2

Recovery rebate credit for new baby

Per the Irs website, stimulus checks were based off 2018 & 2019. Only the recovery rebate credit will be based off 2020 taxes, which I am entitled to receive due to having a new baby and meeting all the requirements. 

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JamesG1
Expert Alumni

Recovery rebate credit for new baby

Make sure that the newborn child is correctly reported as a qualifying child on your tax return.  IRS FAQ states:

 

qualifying child is a child who meets the following conditions:

  • Relationship to the individual who’s eligible for the payment: The child is your son, daughter, stepchild, eligible foster child, brother, sister, stepbrother, stepsister, half-brother, half-sister, or a descendant of any of them (for example, grandchild, niece, or nephew).
  • Child's age: The child was under age 17 on December 31, 2019.
  • Dependent of the individual who's eligible for the payment: The child was claimed as your dependent on your 2019 tax return or in the Non-Filers: Enter Payment Info Here tool.
  • Child's citizenship: The child’s a U.S. citizen, U.S. national, or U.S. resident alien.
  • Child's residency: The child lived with you for more than half of 2019.
  • Support for child: The child didn’t provide over half of their own support for 2019.
  • Child's tax return: The child doesn’t file a joint return for the year (or files it only to claim a refund of withheld income tax or estimated tax paid).

Do you have a Social Security number or an Individual Taxpayer Identification Number (ITIN)?

 

Does the child have a Social Security number or an Individual Taxpayer Identification Number (ITIN)?

 

The TurboTax software adds together the entries that you made for receiving stimulus check 1 and stimulus check 2.  Then the software computes the amount of your stimulus check amounts based upon the information that has been 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 you are due a Recovery Rebate Credit (RRC) on line 30 of the 2020 1040 tax return, 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.

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Riversky2
Level 1

Recovery rebate credit for new baby

This is not correct bc I to am missing 1100 dollars from my tax refund and this will be the last time I use turbo tax!!I went to another tax site and applied all my info and it gave me my 1100 rrc...I had my daughter in Feb of 2020...So is there a way to fix it??My daughter has all the requirements.I understand it was going off the 18-19 info but it should be corrected bc you grantee maximum refund but failed to do so 

 

DianeW777
Expert Alumni

Recovery rebate credit for new baby

One of the most important parts of completing the dependent section for your newborn is to make sure you select that your baby lived with your the whole year. 

 

As far as the stimulus, the calculations have been correct.  As long as you have completed that section correctly, indicating the correct amount you actually did receive, you should see the correct results.  Both first and second payments are reconciled on the 2020 return as noted previously. It seems you did review the Federal Review section for the correct payments. Double check to make sure you corrected the automatic entries.

 

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. See the image below.

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