Question

I need help with a the Recovery Rebate Credit for 2020 and a new born child

Forum|Forum|4 years ago
May 4, 2022
1 reply
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I got a letter from the IRS stating that I owe them $1,100 for Child Tax Credit/Credit for Other Dependents, Recovery Rebate Credit. In looking back at my 2020 1040 on the Recovery Rebate Credit Worksheet I see the $1,100 in line 30 which I assume is for the EIP #1 and EIP #2 for my child born in 2020 that I never received. When I talk to the IRS they said I was not eligible for this credit since EIP #1 and #2 were based on the 2019 tax year which obviously my child was not born yet. But when reading other discussion I feel that I am eligible for the EIP #1 and #2. And in also reading from the IRS website it seems that I am eligible for it as well. Even when I did this using the turbo tax software it says I was eligible but now the IRS is saying that I am not. What am I missing am I eligible to claim $1,100 for a child born in 2020? Anyone else receive a letter like this?

Thanks so much for you help in advance.

X

xmasbaby0

Employee

The 1st and 2nd EIP payments were sent out based on either 2019 or 2020 returns, so that the IRS could send out the payments in a hurry. But the payments were an advance based on your 2020 tax return. If you did not receive the 1st and/or 2nd EIP payment it was available as a recovery rebate credit based on your 2020 tax return (NOT on 2019). If someone told you that you could not get the payments for a child born in 2020 that was wrong. You could enter your child as a dependent on your 2020 tax return and get the 1st one for $500 and the 2nd one for $600--- a total of $1100 for a child born in 2020. It would have been on line 30 of your 2020 Form 1040.

Check your 2020 Form 1040. Make sure your child was claimed as a dependent for that tax year, and that you entered a Social Security number valid for employment for your child. Make sure you said the child lived with you all year (you have to say that for a newborn).

If the IRS removed the credit from your 2020 tax return you need to call the number on the letter you received and sort it out. The IRS reviewed returns with amounts on line 30 and it is possible that an IRS employee made a mistake.

As for the child tax credit---for 2020 that was based on the amount of income you earned by working in 2020. If your child did not have a Social Security number you could only get the $500 credit for other dependents. If your child had a SSN and you had income from working you could receive the child tax credit.

For 2020 look at the child-related credits on your Form 1040:

Look at your 2020 Form 1040 to see the child-related credits you received

PREVIEW 1040

https://ttlc.intuit.com/questions/1901539-how-do-i-preview-my-turbotax-online-return-before-filing

Child Tax Credit line 19

Credit for Other Dependents line 19

Earned Income Credit line 27

Additional Child Tax Credit line 28

Child and Dependent Care Credit line 31 (from line 13 of Schedule 3)

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

J

JBLYONSAuthor

Thanks so much for the reply and help. I have on my 1040 all my children as dependents and all their SS numbers are correct. I am on the phone with the IRS now and she is telling me my child born in 2020 is not eligible for the first EIP but is for the second now. I am at a loss here and have spent 8 hours the last 2 days on hold waiting to talk to someone and when I finally get to a person they transfer me to someone else. Its a vicious cycle but worth $1,100. Thanks again for confirming what I thought was correct appreciate it very much.