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manipulating the recovery rebate credit

generator
Level 1

I have a MFJ client who did not receive a EIP in 2019 because together they made more than the threshold of $150,000:  husband made $63,000 and wife made $132,000.  Now in 2020, they want to file MFS so that the husband, who made less than the $75,000 single threshold cam claim the unreceived rebate from 2019.  Can they do this?  Can you manipulate the recovery rebate credit worksheet like this?

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3 Replies 3
sjrcpa
Level 15

You can. Be aware there may be other adverse tax consequences to filing separately that may outweigh the EIP benefit.


ex-AllStar
generator
Level 1

Thanks.  What might some of the adverse consequences be?

 

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IRonMaN
Level 15

Their actual tax liability may increase.

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