Solved: Recovery rebate problem
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KMon
Level 2

Recovery rebate problem

My first stimulus was supposed to be $2900 for my wife, myself and our new baby, born December 2019.

I received only $2400 because they based it on my 2018 tax return. I was unable to claim the $500 recovery rebate credit. Why is that?

1 Best answer

Accepted Solutions
DawnC
Employee Tax Expert

Recovery rebate problem

Unfortunately, your AGI is too much to qualify for any additional credit.   The credit is reduced by $5 for every $100 over $150K (for married taxpayers).   For an AGI of $161K, your credit is reduced by $550.  So instead of $2900, you would only qualify for $2350.   Since you already received more than you qualify for ($2400), you will not be able to claim the recovery rebate.  :(  

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6 Replies
MinhT1
Expert Alumni

Recovery rebate problem

If you did not receive the first stimulus for a dependent child under age 17, you can claim it on your 2020 tax return as the Recovery Rebate Credit.

 

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.
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KMon
Level 2

Recovery rebate problem

Turbotax said I was due $2900. I followed the interview and Turbotax said "we crunched the numbers"  and the $2400 I did receive was the proper amount. Seems like I am losing $500 ?

DawnC
Employee Tax Expert

Recovery rebate problem

How much is your AGI?   If it is is too high, you won't qualify, and is the newborn listed on your tax return with an SSN?    A social security number is required and the baby has to be listed as a dependent that lived with you more than half the year.    

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KMon
Level 2

Recovery rebate problem

Baby is listed as a dependent with a SSN. Baby was born in December 2019 so only lived with us one month in 2019 but lived with us all 12 months in 2020. We file married filing jointly with a AGI of $161,000.

Does that mean $2400 was the correct first stimulus amount?

DawnC
Employee Tax Expert

Recovery rebate problem

Unfortunately, your AGI is too much to qualify for any additional credit.   The credit is reduced by $5 for every $100 over $150K (for married taxpayers).   For an AGI of $161K, your credit is reduced by $550.  So instead of $2900, you would only qualify for $2350.   Since you already received more than you qualify for ($2400), you will not be able to claim the recovery rebate.  :(  

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DawnC
Employee Tax Expert

Recovery rebate problem

I just noticed that you said you listed the baby as having lived with you for only 1 month in 2019.  Please go back and review your 2019 return as you may be due credits.  A child that is born during the tax year is considered to have lived with you the entire year (all 12 months).   If you listed the baby as only living with you for one month, you may have missed out on some valuable tax credits.   

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