TurboTax and Stimulus Payments

[usersincethe80s]

In 2019 our AGI precluded us receiving stimulus payments.  We also opted not to take any RMD in 2020.  As a result our 2020 AGI  "qualifies" us for the third stimulus payment.  My problem is that TurboTax is using my 2020 AGI to determine if I should have received the first two stimulus payments and applying a $3600 credit to my refund.  Your online stimulus calculator agree that I am not eligible for the first two payments and may be eligible for the third.  Can this be fixed!!!

[MinhT1 · Accepted solution]

You were not eligible for the first two stimulus payments based on your 2019 AGI.

However, if your AGI in 2020 is less than $150,000, you are indeed eligible for the first and second stimulus and you can claim them as the Recovery Rebate credit on your 2020 tax return. So you do not have to fix your return. You can receive the Recovery rebate credit of $3,600 which is shown on line 30 of your form 1040.

Please read this IRS document on the Recovery Rebate credit.

[usersincethe80s]

So the fact that we elected not to take the RMD's and that fact resulted in the AGI being within the limits of the stimulus payments does not alter the eligibility?

[DanaB27 · Accepted solution]

Correct, it does not alter the eligibility since the Recovery Rebate Credit is calculated based on your 2020 tax situation . Therefore, even if you used the option to plan ahead to reduce your AGI by taking less or no retirement then you can qualify for the Recovery Rebate Credit. This would be legal tax planning.