What would be the reason I am not eligible for a stimulus check but I did eveything right? Does it have to do with the fact that I used turbo tax?

[bluedeb · Accepted solution]

It has nothing to due with TurboTax, the IRS is the one issuing the stimulus checks.  If you filed a return & it was accepted by the IRS, then they are the ones that decide if you are eligible for the stimulus money.

Taxpayers likely won't qualify for an Economic Impact Payment if any of the following apply:

• Your adjusted gross income is greater than
  • $99,000 if your filing status was single or married filing separately
  • $136,500 for head of household
  • $198,000 if your filing status was married filing jointly

• You can be claimed as a dependent on someone else’s return. For example, this would include a child, student or older dependent who can be claimed on a parent’s return.
• You do not have a valid Social Security number.
• You are a nonresident alien.
• You filed Form 1040-NR or Form 1040NR-EZ, Form 1040-PR or Form 1040-SS for 2019.

Eligibility Requirements:

U.S. citizens and U.S. resident aliens will receive the Economic Impact Payment of $1,200 for individual or head of household filers, and $2,400 for married filing jointly if they are not a dependent of another taxpayer and have a work eligible Social Security number with adjusted gross income up to:

• $75,000 for individuals if their filing status was single or married filing separately
• $112,500 for head of household filers and
• $150,000 for married couples filing joint returns

Taxpayers will receive a reduced payment if their AGI is between:

• $75,000 and $99,000 if their filing status was single or married filing separately
• 112,500 and $136,500 for head of household
• $150,000 and $198,000 if their filing status was married filing jointly

The amount of the reduced payment will be based upon the taxpayers specific adjusted gross income.

Eligible retirees and recipients of Social Security retirement, survivor, or disability benefits (SSDI), Railroad Retirement benefits, Supplemental Security Income (SSI) and VA Compensation and Pension (C&P) will receive a payment.

For eligible taxpayers who filed tax returns for 2019 or 2018, they receive the payments automatically.

Those who don’t usually file a tax return and receive Social Security retirement, survivor, or disability benefits (SSDI), Railroad Retirement benefits, Supplemental Security Income (SSI) and VA Compensation and Pension (C&P) also receive automatic payments of $1,200. While some of these groups receive Forms 1099, many in this group don't typically file tax returns. Many people in these groups are expected to see the automatic $1,200 payments later this month, with SSI and VA payments expected to start in May.

For people who have little or no income and didn’t file a tax return or don’t receive any of the federal benefits listed above, they are also eligible for an Economic Impact Payment. They need to register with the Non-Filer tool on IRS.gov as soon as possible so they can receive a payment.

[Dougfelli]

I'm in the same boat. I received a lump sum from SSI Disability for previous years where I received payments from a disability company. All of it was paid to me from SSI, then immediately back to the Disability company, yet my Adjusted Gross Income went up over the allowed amount of eligibility for the stimulus check. There should be a way to fix this but no one can seem to figure it out. 

The really stupid thing is that I actually received the lump sum at the end of 2019, so I included in on those taxes. SSI said that they just paid it a few days early so it needed to be moved to 2020's income instead. Therefore, I wasn't eligible for the first check. I corrected it, but the IRS said to just request it on my 2020 tax forms. Now I get the shaft again since I have the same lump sum messing me up this year as I did last! The IRS reps don't care - even if I could reach one.  Guaranteed if it were their money, they'd find a way....

TurboTax software just can't handle this kind of exception either.

[JamesG1]

The Social Security lump sum was ultimately reported in 2020?  Were you able to report the prior year amounts as Social Security lump sum payments at the screen Did you receive any lump-sum payments?

Even if you correctly reported the lump-sum payments, it is very possible that your 2020 adjusted gross income (AGI) was increased out of the stimulus payment range.

And even if you correctly reported the re-payment of the disability income as a claim of right payment, the resulting credit or deduction does not change adjusted gross income.  That is how the tax code is devised.

I absolutely understand how the numbers worked against you.

[Dougfelli]

Thank you for the feedback and the commiseration! I guess my wife and I just have to suck it up and watch all this money that we will be paying for, in terms of taxes and inflation, go to everyone else but not us. I still think there should be some way to reduce our adjusted gross income by this lump-sum that barely passes through my fingers from Social Security to the disability company. This disability company does have a hotline to a tax desk - so I will try them before I give up.

[Dougfelli]

... and to answer your question "no" we didn't get any lump-sum because Social Security sent me the lump sum at the end of 2019. I scrambled to figure out how to report it for 2019 income, sent my taxes to the IRS, the stimulus checks went out to everyone (except us) then I realized that they paid me a week too early and that the money should have been included in 2020's income! I amended my return but the IRS said they couldn't pay me so to include my request for the money on this year's taxes.  But now I have the Social Security lump payment to report again! It pushes my income for 2020 over the top. Aren't the first two payments from the Treasury ultimately  based on 2020? I'm under the impression that there is no way to get the money based on 2019 income or am I wrong? Glimmer of hope?

[ThomasM125]

Your stimulus payments are based on your tax return for 2020.

When you prepare your tax return for 2020 in TurboTax, you will be prompted to enter how much you received for your stimulus and then the program will calculate the amount of stimulus due you based on your income, number of dependents and payments already received. If any additional stimulus is due you, it will be used to reduce your 2020 income tax liability, and the balance will be refunded to you.

You will see the options when you are done entering your tax information and proceed to the review process.

You can file a tax return in 2020 to get your stimulus check, even if you aren't required to otherwise.