stimulus credit for child born in 2020

Forum|Forum|5 years ago
February 3, 2021
3 replies
14 views

The software is not correctly calculating the credit for the child born in 2020. The client is entitled to $1100 for him and the program does not calculate it. I calculated it manually on the IRS worksheet! Please advise how to enter the data to have the calculation in the program correctly give them credit.

Lacerte Tax

This topic has been closed for replies.

qbteachmt

Level 15

https://proconnect.intuit.com/community/form-1040/help/how-to-enter-stimulus-payments-and-figure-the-recovery-rebate/00/118216

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T

TaxGuyBill

Level 15

And double check that the child is showing up as a dependent on the 1040, in case you entered something wrong about the dependent.

BobKamman

Level 15

Did you enter the child's date of birth and SSN?

D

donna0303

Level 2

I am having the same issue. The software is using the 2020 income which is over the threshold. How can I input the 2019 amounts so that the credit can be properly claimed for the dependent born in 2020?

qbteachmt

Level 15

@donna0303

There is no provision for using 2019 income for the stimulus.

You are confusing the Earned Income Credit, which has a lookback provision, with the Recovery Rebate Credit.

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

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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