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Level 2
February 3, 2021

manipulating the recovery rebate credit

  • February 3, 2021
  • 1 reply
  • 8 views

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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1 reply

sjrcpa
Level 15
February 3, 2021

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

The more I know the more I don’t know.
generatorAuthor
Level 2
February 3, 2021

Thanks.  What might some of the adverse consequences be?

 

IRonMaN
Level 15
February 3, 2021

Their actual tax liability may increase.

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