Recovery Rebate Credit: I have joint custody of my kids but we take turn claiming them. I claimed one of three last year so both Covid stimulus payments were for me and o

[birdgirl]

Recovery Rebate Credit: I have joint custody of my kids but we take turn claiming them. I claimed one of three last year so both Covid stimulus payments were for me and one dependent. My ex earns too much to get any stimulus money but claimed the other two kids last year. From what I’m reading I should be able to get the both stimulus checks for my other two dependents. $500 each for the first one and $600 each for the second totaling $2200. It doesn’t seem like turbo tax will allow me to input that in any way. Am I correct about being owed the money and if so how do I include that info here? Thanks!!

[NCperson]

The way this REALLY works is EVERYTHING is based on you 2020 income, filing status and number of children under the age of 17. What these numbers were in 2018 and 2019 does not matter.

The IRS will calculate your stimulus based on 2020 numbers; that is what is considered the ACTUAL.

The two payments were just ESTIMATES

if the ACTUAL is greater than the ESTIMATE, you will receive that amount as a credit on your 2020 tax return.

if the ESTIMATE is greater than the ACTUAL, you are not required to return the money nor does it impact your refund. Line 30 on Form 1040 will be zero.

Turbo Tax is not yet programmed for the 2nd payment, so only enter the 1st payment when TT asks for it for the time being (which sounds like just the $1200  for you and $500 for the one child received for the 1st stimulus)    it should be updated before the filing window opens 

you should see $1000 as a credit from your explanation 

With that explanation, does it work out correctly? 

[SteamTrain]

The tax software might show the first one for your dependents....but the second one has not been programmed into the software, because the IRS is still working on setting up the conditions under which it can, or cannot be claimed

.........once the IR has their systems set up, they inform the software companies how they want it implemented, and then the IRS will have to approve the way the software companies implement those changes.....don't plan on it being implemented in the software before the end of January...could even be later. 

Don't plan on being able to file your taxes until after Feb 1....March 1 is safer to avoid errors and bugs.

[NCperson]

@SteamTrain - the IRS circulated the instructions on how to adjust the worksheet that rolls up to Line 30 on December 31.   

totally my opinion, but I suspect the IRS, TT and other providers will be under extreme pressure to made these changes available when the filing window opens in late January..... the stimulus payments STOP on January 15th and since the only way to get additional money owed is through the tax return, everyone from Congress on down is going to want that money flowing through the economy, So I am highly confident TT will update the software by the end of January.  Again my opinion.

The challenge is that the software asks for your stimulus payment (which is the 1st payment) but folks will naturally assume that is both payments.  Entering both payments now will lead to the wrong answer the way the software is currently programmed.  

[SteamTrain]

Oh, I tend to agree, but so many people try to push too file taxes far too early, before they have absolutely everything in hand...I prefer not to let them get too optimistic.

Certainly, it would be nice if TTX could put a line of text about that stimulus value they are to enter being only for the first stimulus...and to come back later for entering the second one....or the total, however they program it.  

Still, there will be a billion people who have no clue as to what their first stimulus payment actually was, or will miss-enter what they did receive, 0or not enter it at all...and the blowback complaints will be massive.  "But your software told me I would get it !!! "

[NCperson]

@SteamTrain - agree with your comments.... there has been no software update, given the holidays, since the law was passed 8 days ago.  Let's see if they do put in a note or something just to Band-Aid with their normal weekly update Wednesday night.

[Hal_Al]

Q.   Am I correct about being owed the money and if so how do I include that info here? 

A. Not exactly.  As explained at your other post ( https://ttlc.intuit.com/community/taxes/discussion/i-have-joint-custody-and-claimed-1-3-last-year-am...), you must claim the children as dependents (and your ex must NOT claim them) on your 2020 tax return, to get the Recovery Rebate Credit.