Level 2

EIP 2 payments included in 2020 taxes

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

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Level 15

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

HumanKind... Be Both

Level 15

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

---------------------------------------------------------------------------------Still an AllStar

Level 15

(@itonewbie Show-off 🤣 )

HumanKind... Be Both

Level 15

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

---------------------------------------------------------------------------------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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