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Stimulus Checks

Foxy-Lady
Level 3

Client made $177,000 in 2019 made $157,000 in 2020.  Is he entitled to the extra funds being calculated?

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7 Replies 7
Just-Lisa-Now-
Level 15
Level 15

If hes married, looks like he qualifies for some more of the RRC.  You input what he already got as an advance, right?

If hes single, he made too much money.


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
PATAX
Level 9

Did you complete the worksheet for this? Did you enter all of the other data correctly on the return in the correct locations?

Foxy-Lady
Level 3

This is a married couple.  Yes I filled in the 2020 income according to the form.  But in 2019 they made $20,000 more.  They got a partial first check and none for the second.  According to our program they are entitled to a credit of $1789.  Is it valid?

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PATAX
Level 9

So far all of the returns that I have completed, this calculation has been performed correctly for my clients returns....

qbteachmt
Level 15

This is meaningless: "But in 2019 they made $20,000 more."

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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"Level Up" is a gaming function, not a real life function.
dkh
Level 11

If it is a MFJ return without children     Based on the $177000  would've received $2250ish  $1050 ($1050+$0)  Based on the $157,000 qualifies for $3250ish   $2900 ($2050+$850)

 


Edited to correct my math -  geez I need a nap

IRonMaN
Level 15

"Is he entitled to the extra funds being calculated?"

Yes ---------------- as long as you have the correct amounts loaded in for what they received for the year.

Barber! Why didn't I think of this before? Getting paid to give out bad tax advice - need I say more? I've run with scissors for years so it is a natural fit.