Recovery Rebate Credit

[sabkosl13]

My new customer got 2nd Stimulus Payment on January 4th, 2021. His tax preparer didn't put this payment in his 2020 tax return, because he said it was in 2021 so will be used in next year return, and in the return of 2020, which he did in March, he said that he did not get it. As a result, my client received the second payment twice (as direct deposit on 01/04/2021 and as a Credit in his 2020 tax return). Should he submit an amended return for 2020? Or maybe he must show in the 2021 return that he got both the third and the second? Or any other option?

I would be grateful for any suggestions.

Thank you.

[Just-Lisa-Now- · Accepted solution]

He wouldnt have received it twice, IRS would have adjusted for it. Every single one of my clients that said they didnt get the Jan 2021 payment and we picked it up on the return, had it denied and the return was adjusted by IRS.

It doesnt go on the 2021 return anywhere.

[sabkosl13]

So now he must to wait for IRS correction, right?

He sent the return and payment by mail (separate). In January, he got a letter from IRS that they got his payment but didn't get return. He sent tax return again. So it may take time. 

Thank you for your help.

[Just-Lisa-Now-]

anything sent on paper is taking a long loong time. If that 600 was included as RRC, and he wasnt entitled to it, IRS will adjust it and send a bill for sure....might take another 6 months, but it will happen.

[qbteachmt]

"His tax preparer didn't put this payment in his 2020 tax return, because he said it was in 2021"

Even though it was right there on the form, and paid, and they both knew about it, and we were all told the mail was running late (hardly late, Jan 4th).

"and in the return of 2020, which he did in March, he said that he did not get it."

Ha ha ha.

[Camp1040]

I have had two clients swear on all that is sacred that they did not receive the 3rd $1400 stimulus. I explained that I would not complete the return until they went through their bank records to confirm non receipt of payment.

They both called later in the evening to confirm that they HAD received the EIP3 payment. It was a miracle!

[Accountant-Man]

I met a new client today who claimed he didn't get the $1,200 2nd EIP, and his prior preparer filed it as if he should be getting $1,200. he still owed and paid what he thought he owed.

He was wrong.

He then got a bill from the IRS for $1,200.

[rcooley25]

The preparer was wrong.

However te IRS most likely caught and made the correction so an amended taxreturn is not needed.