Solved

Recovery Rebate Credit 2021

Forum|Forum|4 years ago
February 8, 2022
8 replies
0 views

I am wrapping up my tax filing in Turbotax Deluxe for tax year 2021. All along the way I have been watching for a way to process a final reconciling of the 2021 Recovery Rebate Credit or Economic Impact Payment. I don't believe I was paid all that I should have received. Is there some way to get Turbotax to calculate what should be due and provide instructions on how to get it? I did some searching around the help site and found an article that says when I execute the "Federal Review" that if I'm eligible it should bring up a window to ask some questions. That is not happening so I'm just wondering what to do???

I assume it used the 2020 tax filing to determine eligibility and amounts; my AGI was $153K filing joint. I know it is graded down after $150K but I was hoping Turbo would help me calculate the amounts and help do the necessary filing.

Best answer by xmasbaby0

The 3rd EIP payment is based on your 2021 income. When Congress passed the 3rd stimulus they wanted the checks to go out in a hurry so the IRS used 2020 returns to hustle the checks out. If you received the payment you do not have to pay it back even if your 2021 income is above the limit. BUT ....it is really a credit based on your 2021 income----so on a 2021 tax return you have to use the recovery rebate credit in Federal Review to get it.

The IRS sent out letter 6475 to show what you received for the 3rd EIP payment.

If your 2021 AGI is too high you only receive a phased out amount--or maybe nothing. If you are getting the credit it will show up on line 30 of your Form 1040. If it is not bringing up the window for you to enter anyting to get the credit----your AGI is likely too high.

Who’s eligible for the third Economic Impact Payment? (updated March 30, 2021)

Generally, if you’re a U.S. citizen or U.S. resident alien, you are eligible for $1,400 ($2,800 for a joint return), plus $1,400 for each qualifying dependent, if you (and your spouse if filing a joint return) aren’t a dependent of another taxpayer on a 2020 tax return, have a valid Social Security number (SSN) (see exception when married filing jointly and exception for qualified dependents) and your adjusted gross income (AGI) does not exceed:

$150,000 if married and filing a joint return or if filing as a qualifying widow or widower
$112,500 if filing as head of household or
$75,000 for eligible individuals using any other filing statuses, such as single filers and married people filing separate returns.

Payments will be phased out – or reduced -- above those AGI amounts. This means taxpayers will not receive a third payment if their AGI exceeds:

$160,000 if married and filing a joint return or if filing as a qualifying widow or widower
$120,000 if filing as head of household or
$80,000 for eligible individuals using other filing statuses, such as single filers and married people filing separate returns.

For example, a single person with no dependents and an AGI of $77,500 will normally get a $700 payment (half the full amount). A married couple with two dependents and an AGI of $155,000 will generally get a payment of $2,800 (again, half the full amount). Filers with AGI of at least $80,000 (single and married filing separately), $120,000 (head of household) and $160,000 (married filing joint and surviving spouse) will get no payment based on the law.

You aren’t eligible for a payment if any of the following apply:

You could be claimed as a dependent on another taxpayer’s 2020 tax return
You’re a nonresident alien.
You don’t have a valid SSN issued to you by the due date of your tax return (including an extension to October 15 if you request it).

Also, payments will not be made to estates or trusts or for individuals who died before January 1, 2021.

X

xmasbaby0Answer

Employee

The 3rd EIP payment is based on your 2021 income. When Congress passed the 3rd stimulus they wanted the checks to go out in a hurry so the IRS used 2020 returns to hustle the checks out. If you received the payment you do not have to pay it back even if your 2021 income is above the limit. BUT ....it is really a credit based on your 2021 income----so on a 2021 tax return you have to use the recovery rebate credit in Federal Review to get it.

The IRS sent out letter 6475 to show what you received for the 3rd EIP payment.

If your 2021 AGI is too high you only receive a phased out amount--or maybe nothing. If you are getting the credit it will show up on line 30 of your Form 1040. If it is not bringing up the window for you to enter anyting to get the credit----your AGI is likely too high.

Who’s eligible for the third Economic Impact Payment? (updated March 30, 2021)

Generally, if you’re a U.S. citizen or U.S. resident alien, you are eligible for $1,400 ($2,800 for a joint return), plus $1,400 for each qualifying dependent, if you (and your spouse if filing a joint return) aren’t a dependent of another taxpayer on a 2020 tax return, have a valid Social Security number (SSN) (see exception when married filing jointly and exception for qualified dependents) and your adjusted gross income (AGI) does not exceed:

$150,000 if married and filing a joint return or if filing as a qualifying widow or widower
$112,500 if filing as head of household or
$75,000 for eligible individuals using any other filing statuses, such as single filers and married people filing separate returns.

Payments will be phased out – or reduced -- above those AGI amounts. This means taxpayers will not receive a third payment if their AGI exceeds:

$160,000 if married and filing a joint return or if filing as a qualifying widow or widower
$120,000 if filing as head of household or
$80,000 for eligible individuals using other filing statuses, such as single filers and married people filing separate returns.

For example, a single person with no dependents and an AGI of $77,500 will normally get a $700 payment (half the full amount). A married couple with two dependents and an AGI of $155,000 will generally get a payment of $2,800 (again, half the full amount). Filers with AGI of at least $80,000 (single and married filing separately), $120,000 (head of household) and $160,000 (married filing joint and surviving spouse) will get no payment based on the law.

You aren’t eligible for a payment if any of the following apply:

You could be claimed as a dependent on another taxpayer’s 2020 tax return
You’re a nonresident alien.
You don’t have a valid SSN issued to you by the due date of your tax return (including an extension to October 15 if you request it).

Also, payments will not be made to estates or trusts or for individuals who died before January 1, 2021.

**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.**

N

nowakvstaxman

I received my 2021 Federal refund but it does not include my Recovery Rebate Credit of $2800.00

L

LoganathanB

The IRS sent out letter no 6475 to those who were paid the third stimulus.

Check your bank statements to see if you received the third stimulus in 2021.

You can also check in the IRS View Your Account Information page and after creating or accessing your account,

The third stimulus is based on your 2021 tax return and the stimulus is phased out depending on your adjusted gross income.

The AGI limits to receive the full amount of the credit is

$75,000 for individuals
$112,500 for heads of household
$150,000 for married, joint filers

For filers with income above those amounts, payments were phased out or reduced. This means filers didn't receive any payment if their AGI was at least:

$160,000 if married and filing a joint return
$160,000 if filing as a Qualifying Widow or Widower
$120,000 if filing as Head of Household
$80,000 for any other filing status

Click on the link for more information

Third Stimulus

L

Ldoane1968

Why do I owe the IRS 1400.00?

X

xmasbaby0

Employee

@Ldoane1968 Not sure what you mean. If you already received the $1400 stimulus check last year then you cannot get it twice. Lots of people have been making mistakes on their 2021 tax returns by saying they did not receive the $1400 and then the IRS cross checks and sees that they sent it to you and they remove from your refund. Is that what happened? Was your refund reduced and do you now owe?

Or.....were you seeing it when you started preparing your return and now it disappeared?

What you may not realize is that as soon as you began to prepare your tax return, the software was giving you the $1400 and it was shown on that "refund monitor" -----but when you entered that you received it already, the software had to reconcile the payment you received, You cannot get it twice---so it looked to you like you "lost" $1400. You did not lose it---you just cannot receive it twice.

If you are not sure if you already received the$1400, check on your IRS account.

https://www.irs.gov/payments/your-online-account

**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.**

Thank you!

When I traced my federal return, I got this message back. We change ed the amount claimed as Recovery Rebate Credit on your tax return. The error was one or more of the following: The amount was computer incorrectly.

X

xmasbaby0

Employee

@RTCRAIG

LOTS of people have made mistakes this year with the recovery rebate credit by "forgetting" that they received the $1400 per person stimulus checks last year. They answered no to the questions for the recovery recovery rebate credit and put the $1400 per person on line 30 of their returns. But you cannot get it twice, so the IRS removes it when it is there by mistake.

Try checking your online account with the IRS

https://www.irs.gov/payments/your-online-account

Does the IRS show that you received a $1400 stimulus or EIP check in 2021? Did you receive it? When you were asked on your tax return did you say no? Was there $1400 on line 30 of your tax return?

If the IRS says you got $1400 last year but you did not receive it you can have it traced.

LOST THIRD STIMULUS CHECK

https://www.irs.gov/newsroom/questions-and-answers-about-the-third-economic-impact-payment-topic-j-payment-issued-but-lost-stolen-destroyed-or-not-received

**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.**

Rechelle2020

I received an INCORRECT Letter 6475 stating I had received an Economic Impact Payment in 2021. I verified everything I received through direct deposit from the IRS, and I simply DID NOT RECEIVE IT. I was looking for answers in the community forum, but was coming up empty until I found "How do I claim the Recovery Rebate Credit in TurboTax?" and read past the part about verifying whether or not you received stated funds...

The answer is to

"enter all of your federal return information as you would normally."

Then, during the Federal Review, there is a screen if you qualified with the information you have entered: "DID YOU GET A THIRD STIMULUS?"

I answered "NO" and all of the subsequent questions, factually, instead of what the IRS Letter 6475 stated. TurboTax handled the information appropriately, and we not only got a Recovery Rebat Credit for me, but we got it for my husband as well. (I would not have even searched for this or known how to handle it if I hadn't have received the letter from the IRS that I knew was incorrect.)

Hopefully you were able to find and make this correction before submitting your tax return.

If you enter what the IRS said you received in their letter, even though you didn't actually receive it, TurboTax will not appropriately credit what you qualify for at the time you are preparing your tax return.

Hope this helps.

D

Danp1

You posted a proper & correct question, but you did not get a proper answer.

I have a similar issue in trying to find out about why Turbo Tax is not asking me about the Recovery Rebate Credit (RRC) and not giving me any credit.

I got a credit on line 30 in my 2020 taxes but nothing for this 2021 year, in spite of not getting ANY stimulus money in 2021, and having an AGI of $152,000 (per the guidelines I should be getting approx. $3000)

Turbo Tax is not helping at all, I cannot find the RRC questioner or any explanation why I would not qualify.

In fact, I'd like to post this question to the community but don't find a way to do it, except replaying to you. Hope someone will read this post.

Thanks,

Danp1

VolvoGirl

Employee

To get to the stimulus questions in TurboTax at any time, you can search for stimulus or recovery rebate credit then hit ENTER and there should be a Jump to link

If you are trying to trigger it,
Click on Other Tax Situations at top
Click on Let's get started
Answer some questions then Continue
Then click on Let's keep going
Next screen is for the Third Stimulus, if you qualify

If you did not get prompted to enter your stimulus information, that means you either:

Filed as a dependent being claimed on another tax return, or
have an AGI too high to claim the recovery rebate

So better double check your AGI. Do you have any dependents? The 3rd Stimulus is 1400 per person. So for Joint it would be 2800. Why do you think it should be 3,000?

If you got the credit on your 2020 return you should have received the 2021 stimulus payment. Double check your bank accounts and check your IRS account (both if married) to see if the IRS sent you any.
https://www.irs.gov/payments/your-online-account

D

Danp1

Thanks VolvoGirl for your reply!

Yes, I'm trying to trigger it, your procedure does not work because there's no "Let's get started" button, just several Tax items including Other Tax Froms > Miscellaneous Tax forms which do not lead to the RRC form.

I am not claimed as dependent in another tax (as far as I know, couldn't TT tell me?) and

my AGI is ~ $152,000.

I estimate about $3000 in RRC credit because I do have 2 dependents, my wife and one daughter.

I did get the credit in line 30 of 2020 return and did not get any money in my bank accounts (neither in 2020 nor 2021)

Couldn't TT tell me what's going on? is it a secret?

That's why I'd like to "trigger" the RRC in TT, do you know a sure way to do it? (btw, I'm using TT Premier)

Thanks

R

Rene5

how to apply the recovery rebate credit

T

TomK2023

Third stimulus payments were made beginning in March 2021. If you received the full amount of the third stimulus payment in 2021 (Economic Impact Payment), you won’t get any additional Recovery Rebate Credit on your 2021 return since you’ve already received the full amount of the credit as a stimulus payment.

If you didn't receive the full amount of your third stimulus payment, we'll help you claim the Recovery Rebate Credit when you file your 2021 taxes or your 2021 amended return and make sure you get the money you qualify for by double-checking the amount you received.

First, find the exact amount you received for the third stimulus payment.

On your IRS Letter 6475, or
By visiting the IRS View Your Account Information page and creating or accessing your account, or
In your bank statements. You might be able to search your online statements for deposits made by the IRS or US Treasury

When you have it ready, enter all of your federal return information as you would normally.

During the Federal Review, we’ll check if you meet eligibility requirements for the stimulus payment.
If you meet the requirements, you'll see the Did you get a third stimulus? screen.
Answer a few questions about any payments you've already received and then we'll let you know if the Recovery Rebate Credit applies.
- If you need to make any changes to your stimulus credit responses, search for stimulus and select the jump-to link to return to the section. Enter your updated info and Continue.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

B

badams_taxes

Thank You, Everyone, for Your Assistance!

C

chris5038

I never even thought of getting another rebate but TurboTax said we were due one based on information inputted when I did my taxes. I now get a letter from the IRS saying no recovery rebate coming your way and listed 5 reasons why I was not getting it? I did not see where or why I got it to begin with, and now I don't see why I would not get one?

X

xmasbaby0

Employee

@chris5038 Perhaps you misunderstood your letter 6475. If you already received the stimulus payment of $1400 per person then you were not eligible to get it a second time. You were supposed to enter that you received it. You would only be eligible for more if you had a baby born in 2021, added another dependent, etc. Your online account with the IRS shows which stimulus payments you received. And you can check your own bank account for the $1400 per person deposits that would have occurred sometime after mid-March last year too.

If you answered the questions in Federal Review for the recovery rebate incorrectly and put that money on line 30 as if you had not received it, then the IRS took it off. You cannot get it twice.

https://www.irs.gov/payments/your-online-account

**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.**

E

ellen579

Why am I required to state that i have to report a tax credit on my 2021 return. I don't recall receiving 2800.00

X

xmasbaby0

Employee

@ellen579 You are asked if you received the 3rd EIP payment already because you cannot get the stimulus money twice. If you received the $1400 per person stimulus check then you should not end up with $2800 on line 30 of your tax return. If you answer incorrectly and try to get the stimulus twice, it will just delay the processing of your refund and the IRS will take the $2800 away if you already got it. For many people, receiving $2800 is a memorable event. But if you do not remember, check your bank account for a deposit of $1400 per person sometime after mid-March. Or check your online IRS account to see what the IRS shows that they sent to you.

https://www.irs.gov/payments/your-online-account

**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.**

X

xmasbaby0

Employee

@ellen579 And of course....if you really did NOT receive $1400 per person in 2021 then in Federal Review when it asks if you received the 3rd EIP payment you say NO---and if you are eligible the $1400 per person will be added to your 2021 refund. So ----it is important to answer correctly.

**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.**

P

Pat2212

What is this? I got $1400 less in my rebate due to the IRS subtracting it.

DoninGA

Employee

@Pat2212 wrote:

What is this? I got $1400 less in my rebate due to the IRS subtracting it.

If your refund is short $1,400 then that is because you said you did not receive the 3rd stimulus payment and the IRS has records that show you were sent the 3rd stimulus payment so they removed the $1,400 Recovery Rebate Credit that was entered on Form 1040 Line 30.

Go to this IRS website for your tax account to see if the 3rd stimulus payment is entered - https://www.irs.gov/payments/your-online-account

If you checked your bank account in the March - May 2021 timeframe and there is not a $1,400 EIP3 payment from the IRS then go to this IRS website for how to start a trace on the payment - https://www.irs.gov/newsroom/questions-and-answers-about-the-third-economic-impact-payment-topic-j-payment-issued-but-lost-stolen-destroyed-or-not-received