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EIP 2 payments included in 2020 taxes

Level 1

why is EIP 2 info required when that payment should have been received in 2021

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6 Replies 6
Level 15

Because that is how the law says it is to be handled?

Former Chump..umm... AllStar.
"the game of life is hard to play"

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Level 15

Because of what §6428A(e) says about the coordination of Recovery Rebate Credit and Advance Refund (aka EIP).

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Still an AllStar
Level 15

(@itonewbie  Show-off 🤣 )

Former Chump..umm... AllStar.
"the game of life is hard to play"

If a post answers your question, click on *Accept as solution* for future searches
Level 15

Stop pulling my leg.  I can't think straight, that's why i rely on what the letter says.  😅

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Still an AllStar
Level 15

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.

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.
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Level 1

Thanks much appreciated 

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