42
Level 1

The software is not correctly calculating the credit for the child born in 2020.  The client is entitled to $1100 for him and the program does not calculate it.  I calculated it manually on the IRS worksheet!  Please advise how to enter the data to have the calculation in the program correctly give them credit.

qbteachmt
Level 15

https://proconnect.intuit.com/community/form-1040/help/how-to-enter-stimulus-payments-and-figure-the...

 

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TaxGuyBill
Level 15

And double check that the child is showing up as a dependent on the 1040, in case you entered something wrong about the dependent.

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BobKamman
Level 15

Did you enter the child's date of birth and SSN?

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donna0303
Level 1

I am having the same issue. The software is using the 2020 income which is over the threshold. How can I input the 2019 amounts so that the credit can be properly claimed for the dependent born in 2020?

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qbteachmt
Level 15

@donna0303 

There is no provision for using 2019 income for the stimulus.

You are confusing the Earned Income Credit, which has a lookback provision, with the Recovery Rebate Credit.

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.

If the person is not a dependent in 2020, then they would be entitled to the payment/credit as individual filers. That doesn't mean "not being claimed." It means "no longer qualifies as a dependent."

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

Interactive wizards portal 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

One for each EIP.

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donna0303
Level 1

Thank you, that definitely helps!

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