Stimulus Payments I and II for new born 2020 baby.

Forum|Forum|5 years ago
March 18, 2021
3 replies
23 views

This is a weird situation that happened to one of my clients. She had a new born baby in 2020 and claimed 1100 for the first and second stimulus payments. She received the 600 for the second and they denied the 500 for the first stimulus. Income limitations was not a problem. I told her to call the IRS and she was fortunate enough to connect to a representative, and she put me in a three way call, as per my understanding she qualified for the both stimulus for the new born, but the representative told us that because the baby was born in september, after the cut out date of July 15th, she would only qualified for the second stimulus for the new baby. Is that new?

ProSeries Professional

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qbteachmt

Level 15

There isn't really a "Claim" for the Payments. What you have is Advanced Payments made in 2020 against best guesstimates from 2019 or 2018 tax returns, and Reconciled to Actual Eligibility in 2020 via the 2020 tax filing.

"that because the baby was born in september, after the cut out date of July 15th, she would only qualified for the second stimulus for the new baby. Is that new?"

That would apply to the timing of the Payments. The Payments are In Advance.

The stimulus formula is right here.

The funds were paid out as Advanced payment against a projection. The projection used 2018 or 2019 tax returns. But 2020 is the Actuals. You use the 2020 return to reconcile what a person is entitled to, against what they got. There is no splitting of 2020. There are two amounts, but no split.

https://www.irs.gov/newsroom/economic-impact-payment-information-center-topic-a-eip-eligibility

https://www.irs.gov/coronavirus/second-eip-faqs#Eligibility

One for each EIP.

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L

LPTaxServices

Level 3

I have a client that had a child born in 2020. I completed the form within Proseries and it added the $1100 additional Covid payment, but the IRS denied the payment. I looked at the links provided and according to the IRS they should get the money. How do we handle this?