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.
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:
One for each EIP.
"Level Up" is a gaming function, not a real life function.