Recovery Rebate / Stimulus check

[Mustapha Ratib]

Hello All,

My client Married with one dependent got $ 1204 for first stimulus check and $103 for the second one and of course based on the 2019 AGI. Now using the Recovery Rebate calculation, the system automatically put the $ amount number in line 5 for $2400 and Line 6 for 500, so do we have to change the numbers to match what they really got or not, because if not then my client will get a recovery rebate Credit of $1696,

and same thing for the second Stimulus Check Amount line 10 shows $1800 and received only $103 then his recovery Rebate Credit will be $1697.

Please advise.

Thank you

Mustapha

[taxiowa · Accepted solution]

The recovery rebate/stimulus amount is based on the 2020 tax return and AGI from same.  The stimulus received last April and Jan. 1st was estimated based on 2019 return.  So in your client's case the estimate was wrong and your client receives more when they file.  You are good to go!!!  Show that client the money.

[Mustapha Ratib]

Thank you very much for your prompt response 

[Tax man]

ANY KNOW HOW TO ENTER OR DO THIS My child turned 17 in 2019, but I haven’t filed my 2019 tax return. Can I still get the extra $500 for him?

CHILD WAS 16 BUT NOW 17 AT 2020 CAN I OVERWIRTE USING PROSERIES TO CLAIM THIS STIMULUS. 

[qbteachmt]

Here is the Help article:

https://proconnect.intuit.com/community/federal-taxes/help/recovery-rebate-credit-for-tax-year-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.

[Tax man]

thanks on recovery question that part I understand if file independent the person can claim recovery rebate but question is can some one get the recovery rebate for the year of 2019 when filing 2020 since the child is 17 years old but was 16 at the end of 2019 but therefore, the child did not get the $500 since the customer had an iItin number and the other customer has a social security number which is a mixfamily and they can recovery the rebate for 2020 but proseries does not gave the $500 credit unless you overwrite but I want to make sure it is possible to recover that 500 since child was 16 year old at end of 2019 but was not able to get the rebate since it was a mix family during 2019, let me anyone if you have encounter with this issue. 

[qbteachmt]

"but question is can some one get the recovery rebate for the year of 2019"

There is No Rebate for 2019. We all suffered through the declaration of the covid pandemic disaster in 2020. In fact, today is the 1-year anniversary date of that declaration.

Did you read what I provided? 2019 or 2018 taxes were used to determine paying out Advanced amounts.

The 2020 tax return is the Reality and the reconciliation. Only eligibility in 2020 matters.

Just fill in your clients' 2020 tax return properly; let the program do the work.

[qbteachmt]

@Tax man  

You seem to be reading this Incorrectly.

You seem stuck on the SSN/ITIN issue and the issue of filing independently and the issue of dependency.

Go back and Read The IRS articles at the link I gave.

Focus on:

2020

Age of the dependent in 2020

[Tax man]

on thanks got 

read it thanks for the help i appreciate