EIP 2 payments included in 2020 taxes

[wejcompany]

why is EIP 2 info required when that payment should have been received in 2021

[abctax55]

Because that is how the law says it is to be handled?

[itonewbie]

Because of what §6428A(e) says about the coordination of Recovery Rebate Credit and Advance Refund (aka EIP).

[abctax55]

(@itonewbie  Show-off 🤣 )

[itonewbie]

Stop pulling my leg.  I can't think straight, that's why i rely on what the letter says.  😅

[qbteachmt]

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.

You might want to bookmark these links and read the IRS guidance.

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.

[wejcompany]

Thanks much appreciated 

[stewcoll]

EIP received in Feb. 2021 Is it to be included in 2020 tax return

[abctax55]

@stewcoll 

What software are you using?