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atthebeach333
New Member

What should I do if my stimulus package was the wrong amount?

 
12 Replies
NCperson
Level 15

What should I do if my stimulus package was the wrong amount?

why do you think it was wrong? 

 

IRS FAQ: 

 

 a letter about the Payment will be mailed to each recipient’s last known address within 15 days after the Payment is made. The letter will provide information on how the Payment was made and how to report any failure to receive the Payment.

 

 

atthebeach333
New Member

What should I do if my stimulus package was the wrong amount?

Thanks for the response! I haven't received the letter yet. 

 

We had our second kid last fall. Families received $500 for each child. We have two, and the amount we received was short $500.

NCperson
Level 15

What should I do if my stimulus package was the wrong amount?

@atthebeach333 

 

look at your tax return and where the children are listed look WAY OVER to the right... where are the check marks - under "child tax credit' or "other dependent tax credit"? 

atthebeach333
New Member

What should I do if my stimulus package was the wrong amount?

For our first child the check mark is in the "Child Tax Credit" box

For our second child the check mark is in the "Credit for other Dependents" box

Critter
Level 15

What should I do if my stimulus package was the wrong amount?

 
Critter
Level 15

What should I do if my stimulus package was the wrong amount?

Well first you will get the extra stimulus when you file the 2020 return next year.

 

NOW you need to amend the 2019 return to get the proper credit for the child born in 2019 ... when you edit the child in the MY INFO section  read this screen carefully ... 99.9% chance you did NOT enter the WHOLE year even when you were told to do so explicitly ... remember to read the entire screen as you go thru the interview ...

 

child born months 2019.jpg

NCperson
Level 15

What should I do if my stimulus package was the wrong amount?

@atthebeach333 - okay, I think I know what occurred...

 

when you input the information for the newborn, there is a question that asked how many months did this child live with you.   you were to put '12 months / all year' for children born in 2019.   

 

I suspect you put the number of months since his / her birth.  and since you had less than 7 months the 'other dependents' box was checked and those people are not eligible for stimulus.

 

please go back into turbo tax and confirm how many months you reported. Please let me know. 

 

I was typing while @Critter was posting and displayed a elegant example of what i was explaining. Thank you @Critter 

 

If so, the first thing you want to do is amend your return.  That newborn was worth up to $2,000 in tax credits on your 2019 income tax return.  Because the wrong box was checked, the credit was no more than $500.  If you were eligible for EIC, then there potentially more dollars there. 

 

when you amend note that you should have listed this newborn as living with you for 12 months in the comments  and you'd like to get the stimulus $500 as well. 

 

That amendment process is going to take at least 16 weeks, but well worth it for the tax credits.

 

Now, the stimulus.  There is no guidance from the IRS whether they are going to provide the stimulus immediately after amending a return.   Maybe they will and maybe they won't.   But you have to amend regardless to get the tax credits due you.

 

But here is the 'worst case scenario on that - the 2020 tax return next year. 

 

  • The stimulus payments are really based on your 2020 tax return (income, dependents, etc).
  • The IRS is using either 2018 or 2019 – whatever is available  - to ESTIMATE that payment
  • When you file next year there will be a “settle up” section on the tax return. 
  • If you are due more stimulus (and this would include the missing child $500 as well as any children born in 2020!),  you would receive it through the 2020 tax filing as an additional refund
  • If you received too much stimulus (not the issue here), by law , you are not required to return it

 

make sense?

 

please confirm you listed the newborn for just a few months on your tax return instead of 12 months.  if you didn't do that, then there is something else that requires fixing

alicia-1974
Level 2

What should I do if my stimulus package was the wrong amount?

 
Bob Janecek
New Member

What should I do if my stimulus package was the wrong amount?

My first stimulus check should have been $3400(2 adults and 2 children).  It was only $2900($500 short).  Turbo Tax shows that I was entitled to $2900.   My last child was born in January, 2019.  I filed my 2019 taxes(done with Turbo Taxes) by mail in April of 2020.  Both my children were listed on my 2019 tax form.  My second and third stimulus payments were correct.  Turbo Tax shows $2900 as correct and will NOT let me enter that it was $500 short.  My 2020 Gross Income was over $150,000.

AmyC
Expert Alumni

What should I do if my stimulus package was the wrong amount?

Correct, you mailed 2019 so your son was not processed in time for the first stimulus. This means you may qualify for a rebate on your 2020 return. You do not qualify due to your income.

See Coronavirus Tax Relief and Economic Impact Payments

 

@Bob Janecek

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VolvoGirl
Level 15

What should I do if my stimulus package was the wrong amount?

Sorry The first two rounds of Economic Impact Payments were advance payments of the 2020 Recovery Rebate Credit.

 

So if you do not qualify for the Recovery Rebate Credit because of your 2020 tax situation then you will not be able to get the missed stimulus payment.

 

See question 1 Eligibility

https://www.irs.gov/newsroom/recovery-rebate-credit-topic-b-eligibility

 

The eligibility requirements are the same for the Recovery Rebate Credit as they were for the Economic Impact Payments exceptthat the credit eligibility and the credit amount are based on your 2020 tax year information.

 

Critter-3
Level 15

What should I do if my stimulus package was the wrong amount?

Sorry that there's nothing you can do about that $500 shortage. Since you did not get the credit in advance and you're not eligible for it on the 20/20 return you just don't get it.

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