Recovery Rebate Credit & Form 1040 did you receive your economic stimulus payment this year what you didn't what do you do we interrupt this facebook post to bring you the latest breaking news from.
The irs oh hi my name is nikki young and i'm an enrolled agent with latino tax pro we are an association dedicated to. Serving the needs of the latino community through tax preparation training in both english, and spanish did you receive your economic stimulus payments this year what you didn't what do you do my son is a very, good example you see in 2018 he was a dependent under my tax return. Now in 2019 he was not my dependent and filed single on his own he qualifies for the stimulus payments but has not received either. One add to that in march of 2020 he got married and his. Wife did get the stimulus payment what does he do the irs has released form 1040 for 2020 which includes line 30 recovery rebate. Credit what the heck is that all it says is see instructions which were thankfully just released so here's the, 1040 instructions for line 30. now we know the recovery rebate credit has to do.
With the economic impact payments we should have received as for the as the instructions state you may be able to take this, credit if you did not receive eip1 or eip2 so ah it does include the second stimulus and your eip was less than 1200 or 2400 if married filing jointly plus 500 for, each qualifying child or your.
Eip 2 was less than 600 again 1200 if married filing jointly plus 600 for each qualifying child however you don't qualify. For this credit if you already received your full eip1 and you already received your full eip2 again 600. Or 1200 for married filing jointly wait a minute does this say we're going to do another worksheet yes yes it does there is a worksheet to use.
To determine if a client is eligible to receive more stimulus payment if they didn't receive the full amount initially and we, do need to ask this of every client that comes into our office this tax season.
Now for our clients that tricky part will be asking them if they receive their stimulus check and. How much was it ideally they will bring in their notice 1444 and and 1444, b that shows how much they receive now i don't think anyone will remember to bring them in let alone even remembering. Receiving them i still haven't gotten 1444b as it is but we will still need to ask each client how much they receive and complete the worksheet so let's follow. Along the questions question one can you be claimed as a dependent on another person's 2020.
Return no yes well in my son's case of course that's no two does your 2020 return include, a valid social security number yes then you skip lines three and four go to line five and that's where you enter how much you are eligible for, twelve hundred and in my son's case they're eligible for twenty four hundred, filing married fighting jointly and of course they don't have any children yet look forward to that as well as line eight. Talks about eip2 600 or 1200 for the two of them again no dependents to carry back on and you go through here to. See what they're eligible for now you end up at line, 11 where you place your agi for 2020. you see this credit is calculated from your 2020 tax information this year's agi your 2019 tax information or 2018 uh tax information if your. 2019 was not yet available was used to figure your economic impact payments, so going back to my son scenario here is what the worksheet filled out, would look like after questions such as can someone claim you or your spouse as a dependent and do you and your spouse have valid social security numbers our software has us putting the amount. Received by the taxpayers before the questions so that pops up on. Our software and you have to include you have. To put something in there in this case the spouse received her two stimuluses but aaron did not so line five shows what they are eligible for eip1 line eight shows. What they are eligible for eip2 following through all the lines in the worksheet you arrive at line 21 calculating they qualify.
For the stimuluses that aaron did not receive and this amount goes on line 30 of form 1040..
Now what about mixed status families a lot of questions around, that do they qualify for any stimulus well if one parent has a valid social security number that parent will get the stimulus as will any dependents with valid social security numbers both stimulus payments qualify not. Just one the parent with a not a, valid social security number of course does not qualify for anything but if neither parent has a valid social security number the dependents with, valid social security numbers still qualify for the stimulus so here is the worksheet for a mixed status. Family where both parents have itins but the dependent has a valid social security number and, is under 17 years of age as you can see the answer to questions two three and four, is no the parents don't qualify for any stimulus payments so question five is zero for eip1 and question 8 is 0 for eip2. But the dependent still qualifies for line 6 and line 9 which results in 1 100 500, for line 6 600 for line 9 and then 1100 goes online 21 provided of course they have not received any stimulus to date and provided they are continuing under 17. and. Then again that carries over to line, 30 of 10 40. so thank you for your attendance and attention we hope you found this presentation beneficial if you want to see more topics in the future be sure to like and. Subscribe we'd love to have you visit our website at latinotaxpro.org or call us at 866-936-2587 until next time, bye.