Fletcher
Level 3
‎11-04-2021 06:32 PM

IRS disallowed the Recovery Rebate Credit and client did not disagree.  How do I adjust PS Basic original 2020 return to be consistent with IRS' adjustment to client's master file?

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PATAX
Level 15
‎11-04-2021 06:58 PM

Why was the credit disallowed? If something is going to affect next year's return from this then maybe you do want to change it... But if it is not going to have any effect on next year's return then why would you want to change the return that you filed... Just keep the letter from the IRS in the client's file... just my opinion...

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Just-Lisa-Now-
Level 15
Level 15
‎11-04-2021 08:35 PM
go into the RRC worksheet and enter that they got it all as an advance (lines 16 and 19), leaving RRC as zero

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
Just-Lisa-Now-
Level 15
Level 15
‎11-04-2021 08:37 PM
that would be my approach as well, but I guess if 2 years from now they try to re-fi and the copy of the return they provide doesnt match the transcripts from IRS, the lender may give not be able to grasp the reason why they're different.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪