Changes to the original return

[Birdie Man]

After having e-filed Forms 1040 and returning to the clients returns, I have had several where I get a pop-up stating there have been changes made to the original return.  I click on "Display Changes" and it all looks the same with the exception of an adjustment made to the recovery rebate credit.  I have verified the amounts received with each one and info entered was spot on.  This has been happening with clients that received only a partial credit.  So the change being pointed out removes any remaining credit.  Why is this happening?  Is anyone else having the same issue?  Could it be the program ends up recalculating the credit based on the 2020 income instead of it being based on the 2019 or 2018 income?  Any info would be appreciated.  Thanks!

[qbteachmt]

https://proconnect.intuit.com/community/proseries-tax-news-updates/discussion/proseries-2020-produce...

Read that.

[qbteachmt]

Oh, this: "Could it be the program ends up recalculating the credit based on the 2020 income instead of it being based on the 2019 or 2018 income?"

Is, Yes, it is Only based on 2020.

Perhaps it would help to review what is really happening:

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.

If the person is not a dependent in 2020, then they would be entitled to the payment/credit as individual filers. That doesn't mean "not being claimed." It means "no longer qualifies as a dependent."

You might want to bookmark these links and read the IRS guidance.

Interactive wizards portal for determining dependency:

https://www.irs.gov/help/ita

And:

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.