t-o-bookkeeping s
Level 3
08-19-2021
08:27 AM
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My client overpaid because i put their 2021 EIP on the 2020 return. How do I get that overpayment to show up as refund on the 1040-X?
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Moderator
08-19-2021
09:07 AM
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Hi there,
If I understand your situation correctly, it sounds like you're amending to correct the amount of EIP received in 2020 (and thus make your client eligible for some or all of the Recovery Rebate Credit). To do this:
- First, make sure you've activated the 1040X by going to Miscellaneous Forms > Amended Return (1040-X) and checking that the "Amending federal return" box is marked. It's important to do this first to freeze the "as originally filed" amounts.
- Go to Credits > Recovery Rebate, EIC, Residential Energy, Oth Credits
- Correct your entries for EIP 1 and EIP 2 so that only amounts received in 2020 are listed here. If either entry should be zero, make sure to enter -1 in that field.
This should allow the Recovery Rebate Credit to calculate correctly, and the credit increase to flow to the 1040X.
- Rebecca
George4Tacks
Level 15
08-19-2021
01:59 PM
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I would wait to see if the refund is actually received. IRS seems to be a good job of holding a return like this to review any and all EIP payments. Processing has been very slow this year. Don't do anything until the client actually receives the expected refund or a love letter from IRS correcting the return.
Answers are easy. Questions are hard!