Recovery Rebate Credit

[pvanschuyler]

I have a cleint, MFJ with three depednedts under the age of 17. They did not receive the EIP1 or EIP 2 in 2020, as they made too much money in 2018 and 2019.  But in 2020, they made a shade over $150,000. It is my understanding that they should be eligible for the Recovery Rebate Credit. I don't seem to be able to get the credit to generate proplery. Anyone run into this? Thank you.

[Just-Lisa-Now-]

Did you enter zeroes on lines 16 and 19 of the RRC worksheet?

[pvanschuyler]

Are you referring to entering -1 if they did not receive the payments?

[Just-Lisa-Now-]

Sorry, I didnt realize this was Lacerte....Im a PS user

[George4Tacks]

Not to be rude, but leave Lacerte alone. It has many major differences in function. Help with tax questions, but not input.

[George4Tacks]

@pvanschuyler Did you enter-1 in each of the 4 entry points in Screen 38.2? That should do the job. Look at the 1040, line 30 and you should see WKS  Click on that so see the computation.

[Just-Lisa-Now-]

Sorry George, I didnt realize it was Lacerte, I usually only go into the PS topic, but somehow when I hit the back button from a post it drops me in the main page.

[pvanschuyler]

Yes, entered -1 in all areas. The issue is that it is generating a credit for both stimulius checks which I believ is overtated. I believe that the computation should be based on the second payment (RRC) and not the EIP first payment. Laceret is calculating a credit of $6,874 when I believe it should be just $2,987.

[qbteachmt]

Here's your Help article:

https://proconnect.intuit.com/community/form-1040/help/how-to-enter-stimulus-payments-and-figure-the...

Oh, found another article:

https://proconnect.intuit.com/community/federal-taxes/help/recovery-rebate-credit-for-tax-year-2020-...

[BobKamman]

I will gladly leave alone a program where apparently you have to enter a negative number to get somewhere with recovery rebates.  But you can't stop me from shaking my head.