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stimulis payment

milkman
Level 2

Client didn't receive stimulus check because his 2019 income was too high.  His 2020 income is much lower which makes him eligible for the stimulus. Is this reported on the 2020 return or will the IRS just add the amount of the stimulus check to his expected refund?

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itonewbie
Level 15

Your client will be eligible for the Recovery Rebate Credit.  The reconciliation against the EIP received is done on the Recovery Rebate Credit Worksheet found in the instructions for F.1040.  The balance will then flow through to Line 30 of F.1040 (unless the draft is later updated), which has the effect of reducing the balance due or increasing the refund.

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Still an AllStar

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10 Replies 10
itonewbie
Level 15

Your client will be eligible for the Recovery Rebate Credit.  The reconciliation against the EIP received is done on the Recovery Rebate Credit Worksheet found in the instructions for F.1040.  The balance will then flow through to Line 30 of F.1040 (unless the draft is later updated), which has the effect of reducing the balance due or increasing the refund.

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Still an AllStar

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suesue1
Level 3

Are we supposed to find out how much each client received in rebate credit? Seems cumbersome. I don't see anything in the organizer that refers to the stimulus payment received.

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itonewbie
Level 15

@suesue1A number of practitioners are talking about adding their own questions about EIP.  As for your other question, tax practitioners are not supposed to know anything about their clients' finances - that's what an organizer is for and it is your clients' responsibility to furnish the necessary info to you.

In any case, your clients should have received their Notice 1444 for each EIP.  If they misplace it somehow, they should be able to check the amounts they received at https://www.irs.gov/payments/view-your-tax-account.

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Still an AllStar
milkman
Level 2

I agree.  I'm asking all my clients for info on amount received.

the Milkman

suesue1
Level 3

I have added a line in the cover letter for the organizer but few of my clients use the organizer so I guess I'll be stuck making inquiries. Grrrr - what a pain!

itonewbie
Level 15

Not the easiest season this year, for sure. 😊

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Still an AllStar
IRonMaN
Level 15

I believe it is in the organizer ————— but how many clients actually read it?

Armpit sniffer. Yup, checked out the help wanted ads and found the job. With my nose, how can I go wrong?
itonewbie
Level 15

@IRonMaN wrote:

I believe it is in the organizer ————— but how many clients actually read it?


Oh, you're right, @IRonMaN.  The EIP question actually made its way into the organizer.  It looks like Intuit has not yet updated the Intuit Link Questionnaire/Documents Checklist for some reason for those who use them.

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Still an AllStar
suesue1
Level 3

Yes - found it in the General Questions, first line. Most clients don't use the organizer anyway.

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sjrcpa
Level 15

Yes we are. There's no other way to accurately compute the Recovery Rebate Credit.


ex-AllStar