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EIP2

Gator
Level 2

I'm looking for something authoritative (even a mention on the IRS website) that says that an EIP2 that was paid in 2021 needs to be accounted for on the 2020 tax return.

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4 Replies 4
IRonMaN
Level 15

Does the fact that the second payment is listed separately in the software help at all for documentation?


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Just-Lisa-Now-
Level 15
Level 15
The recovery rebate worksheet that asks for payments 1 and 2 (no mention of any year it was recieved) doesn't do it for ya, huh?

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sjrcpa
Level 15
qbteachmt
Level 15

"I'm looking for something authoritative"

Will the IRS do it for you?

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.

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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