Recovery Rebate for child born in 2020

[jwladisc]

I have a new dependent born in Feb of 2020.  Obviously, they were not included in either round of stimulus payments.  I have updated my dependent information when I started my 2020 taxes to include the new dependent.  When completing my taxes and I get to the part for, check on the amount of stimulus I received, I enter the amount that I received, which does not include the monies for the new dependent.  The TurboTax software tells me I received the proper amount.  How can I fix this?  It is not taking into account the stimulus owed for the new dependent born in 2020.  I even set the 2nd stimulus to 0, and it verifies that the Turbotax software is not taking into account the new dependent.  Please help!

[xmasbaby0]

Children born in 2020 were not included in the 1st stimulus because those checks were based on 2018 or 2019. No one got stimulus money for babies born in 2020 because the IRS did not know about those babies or have their SSN’s. But on your 2020 tax return you can claim your child born in 2020 for the stimulus money, as well as the other child-related credits.  You enter your new dependent in My Info.  When you go through the screens in My Info make sure to say your child lived with you the WHOLE year.  When it asks the oddly worded question about whether your child paid for over half their own support say NO.

The stimulus check is an advance on a credit you can receive on your 2020 tax return.  If something went wrong or you did not get the stimulus check in 2020, you can get it when you file your 2020 return in early 2021

This will be found in the Federal Review section under Other Tax Situations. If you are eligible.It will end up on line 30 of your 2020 Form 1040.

https://www.irs.gov/newsroom/economic-impact-payment-information-center-topic-j-reconciling-on-your-...

https://www.irs.gov/coronavirus/coronavirus-tax-relief-and-economic-impact-payments-for-individuals-...

https://ttlc.intuit.com/community/tax-topics/help/how-will-the-stimulus-package-impact-me/00/1393859

good post with screen shots for recovery rebate credit

https://ttlc.intuit.com/community/taxes/discussion/filed-as-an-independent-and-single-but-haven-t-re...

[jwladisc]

The problem is that the TurboTax software only allows you to enter the amount of stimulus you received into the boxes.  When I do that, the software tells that they are confident that I received the proper amount of stimulus.  But I am 1000% certain that it is not considering the newly added dependent I put in at the beginning.  When I enter 0, it also gives me the amount for a family of 4, and with the new dependent we are now a family of 5, so I have verified this way as well.  There is no manual input for trying to get the stimulus for my new dependent.

[DMarkM1]

Yes,  TurboTax should update with the new dependent.  One other item to check... are any of your dependents showing as age 17 or older?  If so, they are not qualifying for the Economic Rebate child payment.  Check the last line of paragraph 8 in this IRS link. 

[jwladisc]

That is correct, one of my dependents turned 17 at the end of 2020.  But according to the law as passed, the stimulus I received is based on the child's status as of Dec 31, 2019.  I was paid for that dependent and the money I am trying to receive is for the new dependent born in 2020, which the IRS could not have known even existed, so wouldn't have paid stimulus to.  The issue is, the software now sees the 17 year old as non-qualifying, which would be correct, but doesn't account for the new dependent born in 2020.  Even the IRS page sites a child turning 17 in 2020 and you get to keep the stimulus you received because it is based on your 21019 filing status. 

[DoninGA]

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@jwladisc wrote:

That is correct, one of my dependents turned 17 at the end of 2020.  But according to the law as passed, the stimulus I received is based on the child's status as of Dec 31, 2019.  I was paid for that dependent and the money I am trying to receive is for the new dependent born in 2020, which the IRS could not have known even existed, so wouldn't have paid stimulus to.  The issue is, the software now sees the 17 year old as non-qualifying, which would be correct, but doesn't account for the new dependent born in 2020.  Even the IRS page sites a child turning 17 in 2020 and you get to keep the stimulus you received because it is based on your 21019 filing status. 

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That is correct you can keep the payment received for the child.  But you cannot double-dip for the same child if they are 17 in 2020.

All stimulus payments are advance tax credits from the 2020 federal tax return.

[jwladisc]

I am not trying to double dip on the child that turned 17.  I am trying to recover the stimulus for both payments for the child that was born in 2020.  The new dependent did not receive either of the stimulus payments as they were not listed on my 2019 returns.

[DoninGA]

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@jwladisc wrote:

I am not trying to double dip on the child that turned 17.  I am trying to recover the stimulus for both payments for the child that was born in 2020.  The new dependent did not receive either of the stimulus payments as they were not listed on my 2019 returns.

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Sorry, missed that part for the child born in 2020.  That child born in 2020 is eligible for both stimulus payments, $500/$600.

If you entered the child as a dependent in the My Info section of the program correctly, the stimulus payments for the child will be included as a tax credit on the federal tax return, Form 1040 Line 30.

Go back to My Info and check all your answers carefully for the dependent.  Make sure you selected Your Child, the date of birth in 2020 is correct, the child lived in your home for the Whole Year since he was born in 2020, that the child did NOT provide over one-half of their own support, that there was NOT another person supporting the child in your household and the child has a valid Social Security number.

If the answers are correct then delete the dependent and re-enter.

I have already tested this on my 2020 Premier desktop edition.  Entered a child born in 2020 and the program gives both stimulus payments combined as a tax credit on Form 1040 Line 30.

[jwladisc]

I have done all of that.  The problem is since my older dependent turned 17 in 2020, he now shows on my 2020 taxes as a not qualified dependent.  So the software is recognizing the new dependent, but when I put in the money I already received, which was for the older 17 year old dependent, the software then says they are confident that I received my full stimulus.  Kind of an odd situation because of a new born and the older turning 17 in the year that we get stimulus.  So the coding of the software is wrong, and needs to look at the status of the older 17 year old dependent as of the law which is age on Dec 31st 2019, when it internally calculates my total monies.  

[jwladisc]

For example put a older dependent at 10/15/2003 and a newborn of 2/15/2020, and you will see the problem.  

[DoninGA]

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@jwladisc wrote:

I have done all of that.  The problem is since my older dependent turned 17 in 2020, he now shows on my 2020 taxes as a not qualified dependent.  So the software is recognizing the new dependent, but when I put in the money I already received, which was for the older 17 year old dependent, the software then says they are confident that I received my full stimulus.  Kind of an odd situation because of a new born and the older turning 17 in the year that we get stimulus.  So the coding of the software is wrong, and needs to look at the status of the older 17 year old dependent as of the law which is age on Dec 31st 2019, when it internally calculates my total monies.  

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No the software is correct.  The child who is 17 in 2020 is not eligible for a stimulus.  The stimulus is an advance tax credit from the 2020 federal tax return.

The IRS used 2019 as the year for calculations because that was the latest return available at the time.

The Recovery Rebate Credit is all based on tax year 2020.  See the Recovery Rebate Credit Worksheet in the IRS Form 1040 instructions for tax year 2020 on page 59 - https://www.irs.gov/pub/irs-pdf/i1040gi.pdf#page=59

[VolvoGirl]

I follow you.  It does seem the program thinks you already got the right amount because the 17 year old dropped off and you added a new child.  Maybe you can change the birthdate of the 17 child to be under 17 then after you go though the Stimulus page change it back?  I saw some posts before about changing the age but it might have been for something else.  

[DoninGA]

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@jwladisc wrote:

For example put a older dependent at 10/15/2003 and a newborn of 2/15/2020, and you will see the problem.  

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Did you enter the $600 stimulus for the 17 year old for the second stimulus?  If so, remove that amount and it should work out Ok.

[jwladisc]

Not correct.  The law was written to issue money based on your dependent on Dec 31, 2019.  I also received both checks and the money I received obviously could not have included the child born in 2020 as they were not listed in any IRS documentation.  So regardless of what I received for either round, I am still owed the money for the dependent born in 2020.

[DoninGA]

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@jwladisc wrote:

Not correct.  The law was written to issue money based on your dependent on Dec 31, 2019.  I also received both checks and the money I received obviously could not have included the child born in 2020 as they were not listed in any IRS documentation.  So regardless of what I received for either round, I am still owed the money for the dependent born in 2020.

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Yes, you are owed for the child born in 2020.  Remove the amount received for the older child and then you should see the stimulus amount of $1100 for the child born in 2020.