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Hi,
One of my client did not receive any money under CARES Act ( they suppose to get $3400) and only $600 in the second stimulus ( suppose to get $2400). Can he eligible to get rest of the stimulus money (ie $5200) when they do the tax this year? Kindly advise
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Im sure you learned about this in the Continuing Education you took in preparation for this upcoming tax season.
Open up the 1040 for this client and plug in some estimated figures for them so you can see how the reconciliation works.
♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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Hi Lisa,
I am taking the the Tax season Readiness virtual conference on Jan 6-7.
Sincerely
Gk
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The recovery rebate gets reconciled on the return, so if they didnt get as much as they were entitled to during 2020, they can pick up the remainder on the 2020 return.
It settles better in my brain by seeing the mechanics happen right on the screen by plugging in a "what if" situation into the 1040 and seeing the outcome.
♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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Would there happen to be some SSN's not eligible for employment involved here? Family of four, but only one US citizen or qualifying resident alien?
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Read that some of the aliens with SSN ineligible for employment were, indeed, sent EIP.
I also wouldn't rule out that some (few may there be) who were sent paper checks (and Notice 1444) just never received them and the IRS may not agree with those reconciliations on the return. There will probably be a few notices here and there.
Still an AllStar
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Lisa, where is this entered on the return ? I'm not seeing it. Thanks.
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♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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Thanks Ms. Lisa .
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Lisa,
I see the work sheet but that states only about First stimulus payment. How do we reconcile Second stimulus money if they didn't get it.
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♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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Great. Thank u Lisa