Level 6

Solved

RECOVERY REBATE CREDIT

Forum|Forum|5 years ago
January 22, 2021
24 replies
50 views

Hi,

Need some help on below case.

One my client (21 yrs old) was a dependent of her parent's last year because her income was only $2000.00. Because of that she was not eligible for Stimulus 1 and 2. This year she wants to do tax totally separate. When i am completing the recovery rebate worksheet what amount i have to put on line 16 and 19. If i put 0 that will give me a full credit of $1800. If i put 1200 and 600 on line 16 and 19. i think that is NOT correct also. Pls help

ProSeries Professional

This topic has been closed for replies.

Best answer by Just-Lisa-Now-

Dear all,

I respect all of your thoughts. My question is about recovery rebate credit. How can i reconcile recovery work sheet for someone who was a dependent of someone in 2019 and independent ( guess he made 50k) in 2020. What amount i have to enter in line 16 and 19 of recovery work sheet. Should i enter 0 or 1200/600.

They received 0, so you enter 0 and they get it added to their refund.

Just-Lisa-Now-

Intuit Community Champion

Sounds correct to me.

This is a 2020 credit. Whomever claims the person (or they claim themselves) for 2020 is entitled to it.

Doesnt matter who got the advance during 2020.

If your client didnt get any advance (Doesn't matter what the parents got), then they're entitled to it on the 2020 return.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

G

gk77_2Author

Level 6

Lisa,

I agree but this client or her parent's did not receive any EIP 1 and 2 because the client was a dependent on 2018 and 2019 return and he/she was older the 16 years. So what amount i should enter on recovery work sheet line 16 and 19. I cannot put zero or 1200/600.

Just-Lisa-Now-

Intuit Community Champion

She didn't receive any advances, you enter zero on both those lines. Why cant you enter zeroes?

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

BobKamman

Level 15

Was she a full-time student for at least part of 5 months in 2020? In other words, does she qualify to be claimed as a dependent by her parents? If she "wants to do tax totally separate," you should want to do an accurate return.

G

gk77_2Author

Level 6

Hi Bob,

I want to do an accurate return. She is not a student . She made only $3000.00 in 2020. But she wants to do a separate tax to get EIP 3. She said she lost other two EIP's because she was a dependent. I said ok, but i have problem with recovery work sheet. What to do?

sjrcpa

Level 15

How did she live on $3,000?

Parents supported her? Sounds like she is their dependent.

The more I know the more I don’t know.

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