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Recovery Rebate Credit

pvanschuyler
Level 2

I have a cleint, MFJ with three depednedts under the age of 17. They did not receive the EIP1 or EIP 2 in 2020, as they made too much money in 2018 and 2019.  But in 2020, they made a shade over $150,000. It is my understanding that they should be eligible for the Recovery Rebate Credit. I don't seem to be able to get the credit to generate proplery. Anyone run into this? Thank you.

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9 Comments 9
Just-Lisa-Now-
Level 15
Level 15
Did you enter zeroes on lines 16 and 19 of the RRC worksheet?

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
pvanschuyler
Level 2

Are you referring to entering -1 if they did not receive the payments?

Just-Lisa-Now-
Level 15
Level 15
Sorry, I didnt realize this was Lacerte....Im a PS user

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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George4Tacks
Level 15
Not to be rude, but leave Lacerte alone. It has many major differences in function. Help with tax questions, but not input.

Here's wishing you many Happy Returns
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George4Tacks
Level 15

@pvanschuyler Did you enter-1 in each of the 4 entry points in Screen 38.2? That should do the job. Look at the 1040, line 30 and you should see WKS  Click on that so see the computation.


Here's wishing you many Happy Returns
Just-Lisa-Now-
Level 15
Level 15
Sorry George, I didnt realize it was Lacerte, I usually only go into the PS topic, but somehow when I hit the back button from a post it drops me in the main page.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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pvanschuyler
Level 2

Yes, entered -1 in all areas. The issue is that it is generating a credit for both stimulius checks which I believ is overtated. I believe that the computation should be based on the second payment (RRC) and not the EIP first payment. Laceret is calculating a credit of $6,874 when I believe it should be just $2,987.

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qbteachmt
Level 15

Here's your Help article:

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

Oh, found another article:

https://proconnect.intuit.com/community/federal-taxes/help/recovery-rebate-credit-for-tax-year-2020-...

 

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"Level Up" is a gaming function, not a real life function.
BobKamman
Level 15

I will gladly leave alone a program where apparently you have to enter a negative number to get somewhere with recovery rebates.  But you can't stop me from shaking my head.  

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