Recovery Rebate Cr or Stimulus Checks

12 replies
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Hello, I am new to the community. Would much appreciate your clarification on this matter please; is regarding the Recovery Rebate or Refundable credits, a/k/a Stimulus check during TY 2020.

Simple scenario - (Single, no dependents)

1. The EIP1 check ($1,200) was received by clients in 2020, no issues there.... The EIP2 check ($600) was received in 2021... My question is: Do we report or recognize the EIP2 ($600) in TY 2020 or 2021? Since it was received in FY 2021, but issued in 2020.

2. Is there a table or schedule for TY 2020 that reflects the client's liability owed from the stimulus amount received -vs- the earned income? Is there a threshold amount? I noticed that the lower the income the less they have to refund from the stimulus money and the higher the income the more is deducted.

Thanks in advance

ProSeries Basic

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Just-Lisa-Now-Answer

Intuit Community Champion

In my particular case, my client had a total income of $56k yet the full ($1,800) amount was deducted. ( Ie. Client had a tentative refund of $1,500. After I entered the $1,800 stimulus checks now shows she owes the IRS $300. What am I doing wrong????

So your client is entitled to the full 1800, but they already got it advanced to them during 2020, so they don't get it on the tax return.

If they had not gotten the advances, then they would see it credited on the tax return.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

Just-Lisa-Now-

Intuit Community Champion

Both get reported, you'll see Lines 16 and 19 of the Recovery Rebate Worksheet asks for each of them

Im not sure I understand your second question, "earned income" doesnt really come into play for the Recovery Rebate/Stimulus, its based on AGI.

There is a phase out for the amount you're entitled to, from 75-100K for single and 150-200k for married joint, for every $100 over the lower threshold amount, they reduce the stimulus by $5.

"I noticed that the lower the income the less they have to refund from the stimulus money and the higher the income the more is deducted."

I 'm not sure I understand this sentence.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

Accountant-Man

Level 13

There is no refund that I am aware of.

Look at the worksheet. That will tell you that you have to enter BOTH payments.

** I am "Elevating with Intention!"

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