Why is my covid recovery rebate tax credit less than the amount I am eligible

[zekeriyya]

TT shows that I was eligible for $1700 stimulus payment last year but since I didn't receive it, a recovery rebate credit should be applied to my tax return. However, the credit amount is much less than $1700. Please see the screen shots below.

We are doing joint filing and our total income in 2019 was less than $150k while it is more in 2020. Could that be related to that (which should still be wrong as first round of stimulus payments were based on 2019 income)? 

Thanks in advance

[xmasbaby0]

The recovery rebate credit is based only on your 2020 income---not on 2019.   When the first checks were sent out last year they had to send them out in a hurry so they used information from 2018 or 2019.   If you got a check based on one of those years and had a higher income in 2020 you do not have to pay the money back.  But if you did not receive the check based on 2019, the IRS does not go backwards now and use your 2019 income.  They only use 2020.

If your income for 2020 was too high you might get a phased out amount or nothing.  The criteria for the recovery rebate credit per the IRS:

A1. Generally, if you are a U.S. citizen or U.S. resident alien, you will receive an Economic Impact Payment of $1,200  ($2,400  for a joint return) if you (and your spouse if filing a joint return)  are not a dependent of another taxpayer and have a Social Security number valid for employment and your adjusted gross income (AGI) does not exceed:

• $150,000  if married and filing a joint return
• $112,500 if filing as  head of household or
• $75,000  for eligible individuals using any other filing status
  Your payment will be reduced by 5% of  the amount by which your AGI exceeds the applicable threshold above.

You are not eligible for a payment if any of the following apply to you:

• You may be claimed as a dependent on another taxpayer’s return (for example, a child or student who may be claimed on a parent’s return or a dependent parent who may be claimed on an adult child’s return).
• You do not have a Social Security number that is valid for employment.
• You are a nonresident alien.
  The following are also not eligible: a deceased individual or an estate or trust.