Welcome back! Ask questions, get answers, and join our large community of tax professionals.
cancel
Showing results for 
Search instead for 
Did you mean: 

Recovery rebate worksheet errors

KGBKaren
Level 3

How do I make the recovery rebate worksheet go away? Client filing single made over $90k last year, not eligible. I am stuck with software calculating $1800 that is not due. Errors won't go away. Do I enter that he received the credits so it doesn't add to his refund?

0 Cheers

This discussion has been locked. No new contributions can be made. You may start a new discussion here

1 Best Answer

Accepted Solutions
IRonMaN
Level 15

If you enter zeroes and a credit is calculated, it sounds like his income dropped to the point of actually qualifying.  The credit is based on actual income for 2020.  2019 was only used as an estimate for sending out the early payment.


Slava Ukraini!

View solution in original post

13 Comments 13
IRonMaN
Level 15

You enter into the worksheet the payments that were actually received for the year.


Slava Ukraini!
KGBKaren
Level 3

He received nothing. He isn't eligible. If I enter 0, that makes it calculate that he gets $1800. 

0 Cheers
IRonMaN
Level 15

If you enter zeroes and a credit is calculated, it sounds like his income dropped to the point of actually qualifying.  The credit is based on actual income for 2020.  2019 was only used as an estimate for sending out the early payment.


Slava Ukraini!
KGBKaren
Level 3

Yes, his income dropped in 2020. What if he isn't interested in accepting it? How can I make the worksheet go away so he doesn't receive the payment? If I right click and delete it, it comes back and continues to show errors.

0 Cheers
IRonMaN
Level 15

If he isn't interested in receiving it, you have 2 options:

1.  Enter the amounts as if he had received them

or

2.  Send me the money --------- I'm interested in receiving it 😁


Slava Ukraini!
KGBKaren
Level 3

Back to square one - that was my initial question and proposed solution.  Thank you.  I learned something about the stimulus payments about 2019 being merely a starting point and 2020 income was the actual determinate. I didn't realize a drop in actual income was the defining place for this. Appreciate the lesson.

IRonMaN
Level 15

You betcha!


Slava Ukraini!
qbteachmt
Level 15

"I didn't realize a drop in actual income was the defining place for this."

It's not, really. It's the 2020 Actuals that matter. A "drop" or not, isn't part of this. You might be confusing the EIP and the EITC. The EITC allows a lookback. Not for the EIP.

You need this again, for 2021.

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.

*******************************
"Level Up" is a gaming function, not a real life function.
0 Cheers
dkh
Level 15

@KGBKaren wrote:

Yes, his income dropped in 2020. What if he isn't interested in accepting it? How can I make the worksheet go away so he doesn't receive the payment? If I right click and delete it, it comes back and continues to show errors.


My suggestion to clients that have told me they did not want the EIPs - donate the money to their church or a local food bank.  Everyone knows a family that struggles to make ends meet that would be grateful for the money. 

I don't suggest sending it back to IRS.

IRonMaN
Level 15

A very worthy organization for those unwanted stimulus checks:

IRonMaN's Home for Wayward Coyotes.  


Slava Ukraini!
poolcleaner
Level 9

Wiley, aren't you?

abctax55
Level 15

"...Wayward Coyotes."

Jeff - what about the turtles?

"*******Tax software is no substitute for a professional tax preparer*******
( Generic Comment )"
IRonMaN
Level 15

That is my Tuck the Turtle Foundation.  For a contribution of only $1.37 a day, you can make sure a turtle has a safe roof over its shell so that it can be safely tucked into bed each night.


Slava Ukraini!