During 2020 an individual was incarcerated from January 1 2020 to July 15 2020. When the first stimulus payment of $1200 was issued they were considered a dependent of the state. This person was not incarcerated and working when the second stimulus payment of $600 was issued. The individual received the second stimulus payment. The program is showing this person is due to receive a credit of $1200 for the first stimulus payment, is this correct?
Individuals who where incarcerated during some period of time in 2020, may, indeed, be eligible to receive the first and second stimulus payment. This website states:
Because Congress did not exclude people in prison or jail, the IRS had no choice but to issue the payments to incarcerated people who otherwise qualified. Others who made this same argument ultimately prevailed in court and incarcerated people began to receive stimulus checks.
The taxpayer must meet the IRS eligibility rules:
You must have a valid Social Security number, and you can’t have been claimed as a dependent on someone else’s 2019 tax return. In general, taxpayers without an eligible Social Security number are not eligible for the payment.
See also the IRS Get My Payment tool.