RECOVERY REBATE QUERY

[Quest]

Hello Everyone, 

 

Does anyone encounter the issue which I have just encountered. My client did not get any stimulus payments. He is MFJ. When I tried to claim both the credits, the software is calculating only as a single taxpayer and not as MFJ. He is therefore getting only $1200 ( not 2400) for 1st payment and only 600( not 1200) for the second one.

 

Any idea.

 

Thanks

[Margaret CPA in OH]

Did the taxpayer file as single in 2019?  Is the income high enough for 2020 to reduce the amount by half?  It does seem odd assuming you followed the worksheet and input 0 received in both places.  I had one like that but it worked just right.

[Quest]

Thanks. My client did not file single in 2019. Also his AGI is way less than the threshold. More interestingly, I have been filing taxes with correct calculations but now in these last days 2 of my clients calculations is calculating right.

[Quest]

not calculating right. Sorry for the typo

[jklcpa]

Are you using ATX? Check to see if that form had an update and make sure yours is the current version.

You could try deleting the form, closing the return, maybe also closing the program, and then reopening the return and adding that form back in. See if it is calculating correctly after that.

[Lion EA]

The IRS and some tax programs split the EIP and the RRC into two halves for the taxpayer and spouse. Is that what's happening on your client's return? Did you put zeros for the amount received for the taxpayer AND the spouse? Check for updates. Maybe delete the RRC worksheet and re-add it.

[Slippery Pencil]

Phaseout

Some checkbox isn't checked correctly

Go through the worksheet line by line to find the error

What software?

Edited May 12, 2021 by jklcpa
merged this reply into existing duplicate topic

[Pacun]

When you click on line 30 of 1040 form, make sure you only have a check mark where it reads that your clients have SS number. If you check mark the next box, it is assumed that ONLY one taxpayer has a valid social security number.