Recovery Rebate Credit

[shhamilton]

I have a client that received the 3rd round $1,400 stimulus payment on himself, his spouse, his daughter that lives with him and his daughter from another marriage that does not live with him.  He claims the daughter from another marriage every other year and therefore claimed her on his 2020 tax return.  He had a new child born in 2021.  If I put in that he received $5,600 in stimulus money, because he does not get to claim his daughter from another marriage for 2021, the program assumes that he received the $1,400 for his new child, which he did not.  Is there a fix for this?

[sjrcpa]

You enter what he actually received.

[Accountant-Man]

Not the first, but a rather odd occurrence. It happens, like a child aging out in 2020, meaning zero stimulus, but the stimulus payment was paid based on 2019.

That child didn't deserve it for 2020, but got it. New child deserved it, but doesn't get it.

[qbteachmt]

"the program assumes that he received the $1,400 for his new child, which he did not."

Those funds are not named for each person. They are based on the census of that taxpayer's life. This was paid based on a projection of what the 2021 tax year filing would include. So, now you are reconciling. And it turns out that everything is fine. He got all the money he is entitled to, for his Actual Circumstances.

[rcooley25]

If you are eliminating one and adding another your answer for the childdcare credit should remain the same.