Client didn't receive stimulus check because his 2019 income was too high. His 2020 income is much lower which makes him eligible for the stimulus. Is this reported on the 2020 return or will the IRS just add the amount of the stimulus check to his expected refund?
Your client will be eligible for the Recovery Rebate Credit. The reconciliation against the EIP received is done on the Recovery Rebate Credit Worksheet found in the instructions for F.1040. The balance will then flow through to Line 30 of F.1040 (unless the draft is later updated), which has the effect of reducing the balance due or increasing the refund.
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