Recovery Rebate Credit - 2020 & 2021 payments?

[dude7707]

Currently Ln 30 of 2020 1040 W/S shows $2,400 - If MFJ and No dependents - however now that clients are receiving 2nd payment in 2021, IS this to be also reported on 2020 1040?  I assume Y, and ProSeries will update the W/S accordingly to accommodate this change - Y? 

[Just-Lisa-Now- · Accepted solution]

Yes, it will go on the 2020 return.  Give Intuit  a couple weeks to get the program updated for this new change.

[dude7707]

Just as I thought......Thanks Lisa for the Quick Reply!

Happy New Year!

[qbteachmt]

If it helps, you can watch the Draft Forms go through update, and check the Instructions, such as 1040:

"Economic impact payments—EIP 1 and EIP 2. Any economic impact payments you received are not taxable for federal income tax purposes, but they reduce your recovery rebate credit."

That tells you what is coming for the filing year.

This is dated 12/31/2020.

https://apps.irs.gov/app/picklist/list/draftTaxForms.html?value=1040&criteria=formNumber&submitSearc...

[dude7707]

Thank you....very helpful!

Happy New Year!

[Ephesians3-14]

Anyone think that we'll be able to look up how much each taxpayer received from the stimulus payments? I'm not hopeful that we'll be able to be able to look it up by AMOUNT. Telling me that the taxpayer received a EIP is great, but I need the amount!

[qbteachmt]

It shows on their account transcript.

[qbteachmt]

"If you have the ability to pull your clients' transcripts, the EIP is already posted to their 2020 account. Code 766 reports the amount of the credit authorized and Code 846 reports the amount actually sent to the taxpayer."

I found an image as example:

https://www.irsmind.com/irs-notices/irs-transcripts-now-provide-stimulus-payment-information/

[Just-Lisa-Now-]

Years ago when they did a stimulus IRS set up an online lookup tool...hopefully they do the same for this.

[qbteachmt]

The IRS states they will reopen the Get My Payment for EIP 1 and EIP 2. It's all part of the FAQ:

https://www.irs.gov/coronavirus/get-my-payment-frequently-asked-questions

And: "Please note that the form of payment for the second mailed EIP may be different than for the first mailed EIP. Some people who received a paper check last time might receive a debit card this time, and some people who received a debit card last time may receive a paper check."

[Accountant-Man]

I got my second payment on January 1, 2021.

[Ephesians3-14]

Yeah - that's great, but I gotta get a POA from every client to get a transcript, no? Big hassle if I have to get a POA (i.e., lots of questions from the client, etc)

[abctax55]

@Ephesians3-14 

'....but I gotta get a POA from every client to get a transcript'

Only for the ones that didn't keep the notice, or don't  remember what they received. And only if you include babysitting in your business services.  Make the client do it, it IS their responsibility.

[dude7707]

I agree, POA 's or 8821's are somewhat time consuming.....curious what do you charge

for completing these forms and faxing/mailing to IRS CAF department?

I heard one charges $250.....for POA's.. 

[qbteachmt]

If you follow the links I provided, you would see that the portal for Get My Payment includes the ability to check on the stimulus, if a payment was sent or not, and if by check or direct deposit or debit card.

"You will be able to check the status of your EIP 1 and EIP 2 payments. The status includes the date of the payment and the method (direct deposit or mailed payment date). Mailed payments will require more processing and mailing time. As more information becomes available, we will provide updates."

But they also warn you that, "Some people received their first Economic Impact Payment in multiple payments. If you received more than one payment for EIP 1, the Get My Payment application will show you only the most recent payment information."

This is why they name these sites FAQ:

"Will Get My Payment show me the status of both my first and second Economic Impact Payments? (added ...

Yes, you’ll see the most recent status of both your Economic Impact Payments, and each will be identified accordingly.

Some people received their first Economic Impact Payment in multiple payments; Get My Payment will show you only the most recent payment for EIP 1."

I've done it for a few clients, and for my mother, for round 1. It worked fine.

[Just-Lisa-Now-]

That says its going to show a status (if and when its been sent), not necessarily the dollar amount. We'll have to see how it ends up working.

[qbteachmt]

If you get it by direct deposit, your bank will have a record, and that can be provided to your tax preparer. That way, the tax preparer won't need POA.