Unable to access Recovery Rebate Credit

[JShayler]

Hello,

When I filed last year, my AGI was too high to receive the full stimulus. However, the IRS adjusted my AGI after I filed thereby making me eligible. Per the IRS, in order to receive the full stimulus I have to claim it on this year's taxes. However, I am not receiving the prompt during the Federal Review. How can I either force the prompt or identify the issue?

[xmasbaby0 · Accepted solution]

The IRS is not going to go backwards and issue the 3rd EIP payment to you based on 2020.   Only your 2021 income will be considered for the recovery rebate credit.   If your 2021 income is too high then you can only get a phased out amount or maybe nothing.

Who’s eligible for the third Economic Impact Payment? (updated  March 30, 2021)

Generally, if you’re a U.S. citizen or U.S. resident alien, you are eligible for $1,400 ($2,800  for a joint return), plus $1,400 for each qualifying dependent, if you (and your spouse if filing a joint return) aren’t a dependent of another taxpayer on a 2020 tax return, have a valid Social Security number (SSN) (see exception when married filing jointly and exception for qualified dependents) and your adjusted gross income (AGI) does not exceed:

• $150,000 if married and filing a joint return or if filing as a qualifying widow or widower
• $112,500 if filing as head of household or
• $75,000 for eligible individuals using any other filing statuses, such as single filers and married people filing separate returns.

Payments will be phased out – or reduced -- above those AGI amounts. This means taxpayers will not receive a third payment if their AGI exceeds:

• $160,000 if married and filing a joint return or if filing as a qualifying widow or widower
• $120,000 if filing as head of household or
• $80,000 for eligible individuals using other filing statuses, such as single filers and married people filing separate returns.

For example, a single person with no dependents and an AGI of $77,500 will normally get a $700 payment (half the full amount). A married couple with two dependents and an AGI of $155,000 will generally get a payment of $2,800 (again, half the full amount). Filers with AGI of at least $80,000 (single and married filing separately), $120,000 (head of household) and $160,000 (married filing joint and surviving spouse) will get no payment based on the law.

You aren’t eligible for a payment if any of the following apply:

• You could be claimed as a dependent on another taxpayer’s 2020 tax return
• You’re a nonresident alien.
• You don’t have a valid SSN issued to you by the due date of your tax return (including an extension to October 15 if you request it).

Also, payments will not be made to estates or trusts or for individuals who died before January 1, 2021. 

[MayaD]

In TurboTax, The Recovery Rebate Credit will be found in the Federal Review section.

To claim the Credit:

1. Enter all your federal return information as you would normally

2. During the Federal Review, we’ll check if you meet the requirements for the stimulus payment

3. If you meet the requirements, you'll see the Did you get a third stimulus? screen

4. Answer a few questions about any payments you've already received and then we'll let you know if the Recovery Rebate Credit applies

If you are eligible, the credit will end up on line 30 of your 2021 Form 1040.

[JShayler]

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@xmasbaby0 wrote:

The IRS is not going to go backwards and issue the 3rd EIP payment to you based on 2020.   Only your 2021 income will be considered for the recovery rebate credit.   If your 2021 income is too high then you can only get a phased out amount or maybe nothing.

To be clear, by filing taxes early last year I've lost out on the 3rd EIP. Had I waited until after the rule change I would have received the full amount. So the lesson is to wait until the last moment to file?