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Level 1
May 14, 2021
Question

MFJ vs MFS worksheet shows "negative credit" on Recovery rebate line (raises tax). Glitch or correct? If correct, why? (one spouse exceeds income max)

  • May 14, 2021
  • 1 reply
  • 9 views
I used the rebate credit worksheet with the info for each spouse and can't see how a "negative credit" can be calculated.  It would be effectively a penalty via the recovery rebate for married filing separately.  Can that be correct?
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1 reply

Level 6
May 17, 2021

They wouldn't have to pay it back.   So there is no penalty.