income used to determine EIP 1

[jvp]

My client did not receive the first stimulus although he met all the requirements. in 2020 he earned more than 75k and is not eligible to claim it. The Pro series program erroneously uses the 2020 income levels and not the 2019 income levels. I am correct?  

[jeffmcpa2010]

No. You are not correct.

Proseries is calculating it correctly not erroneously.

Scary that you are just learning how the stimulus program worked on filing day.

[IRonMaN]

Better late than never😁

[George4Tacks]

The client MAY be able to get EIP1 reissued. Read https://www.irs.gov/coronavirus/second-eip-faqs carefully

[Just-Lisa-Now-]

The EIP 1 advance may have been based on the 2018 income....did they qualify using the 2018 figures?

[qbteachmt]

"in 2020 he earned more than 75k and is not eligible to claim it."

That is all that matters.

Perhaps it would help to review what is really happening for EIP “stimulus” funds: The funds were paid out as Advanced payment against a projection. The first two payouts were projected based on 2018 or 2019 tax returns, but the eligibility is part of tax year 2020 as 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 eligible for consideration as individual filers. That doesn't mean "not being claimed." It means "no longer qualifies as a dependent." You must correctly address whether they Can be Claimed as a dependent on someone else’s tax return.

The third payout which started in Jan 2021, has different eligibility rules as to dependents and this payout is a projection, using 2019 or 2020 tax returns, then reconciled against Actuals on the 2021 tax return.

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

Interactive wizards portal includes one 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

https://www.irs.gov/newsroom/irs-is-issuing-third-round-of-economic-impact-payments
https://www.irs.gov/coronavirus/third-economic-impact-payment
https://www.irs.gov/newsroom/more-economic-impact-payments-set-for-disbursement-in-coming-days-taxpa...
https://www.irs.gov/newsroom/more-details-about-the-third-round-of-economic-impact-payments


One for each of the three EIP “stimulus” payments.

[qbteachmt]

"uses the 2020 income levels and not the 2019 income levels. I am correct?"

That is your confusion of EIP vs EITC. There is no lookback for EIP.