Recovery Rebate Credit Worksheet

[acitrola]

Good afternoon!

I am preparing my first 1040 of the 2020 season.

My concern is the Recovery Rebate Credit Worksheet.  

If I am not mistaken it appears that every taxpayer must be aware of the amount of the stimulus payment they received in 2019.  Although my clients are pretty savvy, I can picture all the blank looks on their faces when I ask this question.  The instructions state to take the amount off of Notice 1444, but there too, not everyone keeps track of their paperwork.

Secondly, the worksheet asks for the amount of the second stimulus payment.  What if the second payment is not received at the time of filing, and a payment is issued at a later date?

I would appreciate any input from the Intuit community.

Thank you!

[athaureaux6]

That is a good question, I believe none of them, even me, would have kept Notice 1444. First I would take a look if the income is far away or over the income limits, to see if they qualify, also look at the 2019 income levels. If you have time, I think in the IRS GEt my payment tab there is a way to verify amount of both credits, but in the middle of the tax season, that will take a lot of time. But I get you, this will cause a lot of problem. The tax community is encouraging the IRS to provide a tool to check the amount of the stimulus checks quickly, but they say they are working on it. But everybody knows they might not have it. Sorry. Good question. 

[athaureaux6]

I just checked the Get my payment tool tells you when the payments were scheduled to be sent, not the amount, but they definitely have to facilitate that information. Sorry  

[Just-Lisa-Now-]

Get My Payment only shows if it was sent, not how much or if the payment was actually received (landed successfully in a bank account/debit card activated/check cashed/etc).....its going to be along bumpy tax season with this recovery rebate!

I put in my annual client letter that they need to make an effort to find these amounts and include them with in their paperwork. Fingers crossed for a look-up tool, but again, it wont tell us if the client actually GOT the money, only that IRS sent it.

Until IRS gives us some better guidance, were all just winging it!

[qbteachmt]

Stimulus info can be found at these links:

https://www.irs.gov/payments/view-your-tax-account

https://www.irs.gov/coronavirus/economic-impact-payment-information-center

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

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

https://turbotax.intuit.com/stimulus-check/


And: "The IRS said you can check the status of your second stimulus payment at IRS.gov/GetMyPayment (GMP).

If GMP reflects a direct deposit date and partial account information, then your payment is deposited there. If the payment was mailed, it may take up to three or four weeks to receive the payment. Watch your mail carefully and be sure not to throw out your payment.
If GMP shows “Payment Status #2 – Not Available,” then you will not receive a second stimulus check and instead you need to claim the Recovery Rebate Credit on your 2020 Tax Return."

What does this mean to a preparer? Holding the client responsible for knowing or gathering the info; having the client do their own due diligence (banking records for deposits, 1444 or 1444a, etc); having them get their Tax Account transcript...

An account transcript image example, which you can get for them or they can get for themselves:

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

[Just-Lisa-Now-]

so what if the transcript shows it was sent, but the taxpayer never got it?

[dkh]

I've not tried this but others have posted this information as a way of finding out what taxpayers received for the EIPs.   

https://www.irs.gov/payments/view-your-tax-account

this link Get My Payment | Internal Revenue Service (irs.gov)

will show the status but not the amount....   I did this for myself just to see what information it provides

[qbteachmt]

"so what if the transcript shows it was sent, but the taxpayer never got it?"

https://www.irs.gov/newsroom/economic-impact-payment-information-center-topic-f-payment-issued-but-l...

[BobKamman]

@acitrola  "What if the second payment is not received at the time of filing, and a payment is issued at a later date?"

The law said the payments had to be issued by January 15.  I think IRS has made an exception for some whose payments went to a pay-by-refund temporary bank account, but those should go out by early next month.  The idea is that if the payment is not received by February 12, it's not going to be received.  

IRS is playing "I've Got A Secret" here.  If taxpayers don't claim the credit but are eligible, will IRS automatically allow it?  They certainly have the data to figure that out.  If taxpayers claim the credit but are not eligible, will IRS automatically disallow it?  Will that slow down processing of the return or issuance of a refund? 

Who knows what lurks in the minds of IRS management?

[Accountant-Man]

You said <<every taxpayer must be aware of the amount of the stimulus payment they received in 2019>>. Not true, you mean received in 2020.

Also, the PS Organizer first question is: Did you receive an Economic Impact (Stimulus) Payment? Yes or No.

If yes, how much did you receive? ______________

Of course most don't read the Organizer, let alone complete it. But it's worth a shot.

[BobKamman]

@Accountant-Man "Of course most don't read the Organizer, let alone complete it."

For decades I have sent an annual letter to tax clients making fun of other practitioners who send out a bundle of forms that take more time to fill out than the tax forms themselves.  I do send a checklist of two or three pages, reminding them of what they need to send or bring me.  I call it the Disorganizer.  This year, though, I'm trying to figure out the best way to convince most clients that they need to forget about itemized deductions. Now that the standard deduction has been increased, SALT is capped at $10K, and mortgage interest rates are at historic lows,  most won't make the cut.  

Your results may vary.  

[Just-Lisa-Now-]

Just had a client in San Fran call me, she's buying a condo for 670k..Im thinking she'll be able to utilize the itemized deductions.

[BobKamman]

@Just-Lisa-Now- 

Unless she marries some gold-digger by the end of the year.

[dinarey72]

Im using Proseries recovery rebate credit worksheet. It seems like it is not designed to claim the second stimulus payment as well as the first one, because it is only asking for info on the 1st one or am I doing something wrong?

[Just-Lisa-Now-]

Update the program, then you'll have 2 lines.