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RECOVERY REBATE CREDIT

joeh
Level 2

Client was claimed as dependent on 2019 return.in 2020 not being claimed as is now 24 years old and oouf school

should be eligible to recover credit on return for 2020 for second stimulus ...question is...on worksheet should i acknowledge receiving full amount in 2019 so as not to add that payment?

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qbteachmt
Level 15

This is incorrect: "for software to not include first stimulus for which client was a dependent"

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. That doesn't mean "not being claimed." It means "no longer qualifies as a dependent."

 

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

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12 Replies 12
TAXOH
Level 11
Level 11

If they did not get it they can get it when they file as long as they are not a dependent of anyone in 2020.

joeh
Level 2

I am comfortable with client getting second stimulus via tax return based on 2020 filing status

 

for software to not include first stimulus for which client was a dependent...should I acknowledge it as received on worksheet/

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TAXOH
Level 11
Level 11

On the dependents return you do not acknowledge it was received because it wasn't. 

IRonMaN
Level 15

Folks are making this stuff way more difficult than it has to be. 😢

ACME Taxes, Tattoos, Tires and Tasmanian Devils - one free devil with every return.
joeh
Level 2

thank you...however by not acknowledging in worksheet the software includes the 2019 $1200   with the 2020 return which is not accurate as the client was ineligible for first stimulus payment

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TAXOH
Level 11
Level 11

Why do you think they weren't eligible for the first one of 1,200?

qbteachmt
Level 15

This is incorrect: "for software to not include first stimulus for which client was a dependent"

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. That doesn't mean "not being claimed." It means "no longer qualifies as a dependent."

 

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

View solution in original post

joeh
Level 2

thank you...fully agree.. now that you remind me that 2020 is the year to be considered for the payments

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mcagan
Level 2

I have the same situation, and entered -1 in both Pmt 1 and 2 slots. But the RRC isn't showing up on the tax return - it's coming up zero even though it should be $1800. Not sure if I missed checking a box somewhere or something. Any guidance?

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qbteachmt
Level 15

"and entered -1 in both Pmt 1 and 2 slots"

Are you using Lacerte or ProSeries?

https://proconnect.intuit.com/community/configure-products/help/how-to-enter-stimulus-payments-and-f...

 

*******************************
"Level Up" is a gaming function, not a real life function.
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mcagan
Level 2

I'm using ProConnect, and I followed the instructions for how to enter the non-received payments. Not sure what's glitching. I deleted and re-entered a few times. Ran diagnostic and got no pings.

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qbteachmt
Level 15

@mcagan 

"I'm using ProConnect"

You're in the wrong forum, then. You posted in ProSeries.

Here is your Help article:

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

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