Please be aware that the Recovery Rebate Credit is based on your 2020 tax situation. TurboTax is calculating the Recovery Rebate Credit correctly but if you do not wish to claim the Credit you could answer that you received the full amounts of stimulus payments. Then the Recovery Rebate Credit will not be added to your return. To be eligible for the credit you need to be a U.S. citizen or U.S. resident alien in 2020 and have a Social Security number that is valid for employment. You cannot be claimed as a dependent by someone else to be eligible. Your credit amount will be reduced if your 2020 adjusted gross income (AGI) is more than: $150,000 if married and filing a joint return or filing as a qualifying widow or widower $112,500 if filing as head of household or $75,000 for eligible individuals filing as a single or as married filing separately. Your payment will be reduced by 5% of the amount by which your AGI exceeds the applicable threshold above. (IRS FAQ Recovery Rebate Credit ) To claim the credit in TurboTax, please follow these steps: Log into TurboTax. After entering all your information click "Federal Review" at the top of your screen (or click "Search" and type "Stimulus" and follow the jump to link). On the screen "Let's make sure you got the right stimulus amount" click "Continue". You will be asked about the amounts of first round and second round stimulus payments you received. If you did not receive a payment enter "0". TurboTax will then calculate the amount of stimulus payment remaining that you are still entitled to get. Any stimulus amount remaining due to you will show as a credit on line 30 of the 1040.

Question

Why is TurboTax insisting that I qualify for a Recovery Rebate Credit when my income in both 2019 and 2020 was too high? How do I override?

Forum|Forum|5 years ago
April 14, 2021
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TurboTax Online

D

DanaB27

Please be aware that the Recovery Rebate Credit is based on your 2020 tax situation.

TurboTax is calculating the Recovery Rebate Credit correctly but if you do not wish to claim the Credit you could answer that you received the full amounts of stimulus payments. Then the Recovery Rebate Credit will not be added to your return.

To be eligible for the credit you need to be a U.S. citizen or U.S. resident alien in 2020 and have a Social Security number that is valid for employment.

You cannot be claimed as a dependent by someone else to be eligible.

Your credit amount will be reduced if your 2020 adjusted gross income (AGI) is more than:

$150,000 if married and filing a joint return or filing as a qualifying widow or widower
$112,500 if filing as head of household or
$75,000 for eligible individuals filing as a single or as married filing separately.

Your payment will be reduced by 5% of the amount by which your AGI exceeds the applicable threshold above. (IRS FAQ Recovery Rebate Credit )

To claim the credit in TurboTax, please follow these steps:

Log into TurboTax.
After entering all your information click "Federal Review" at the top of your screen (or click "Search" and type "Stimulus" and follow the jump to link).
On the screen "Let's make sure you got the right stimulus amount" click "Continue".
You will be asked about the amounts of first round and second round stimulus payments you received. If you did not receive a payment enter "0".
TurboTax will then calculate the amount of stimulus payment remaining that you are still entitled to get.
Any stimulus amount remaining due to you will show as a credit on line 30 of the 1040.