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IR-2020-93 EIP amounts may be different and correcting errors in 2020 tax return

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    IR-2020-93 EIP amounts may be different and correcting errors in 2020 tax return

    The IRS has stated in IR-2020-93 that the Economic Impact Payment (EIP) amounts could be different than anticipated. Some Americans could have received a payment amount different than what they expected. EIPs vary based on income, filing status and family size. Some of these scenarios include (1) the IRS not having processed a tax year 2019 return; (2) a child ineligible for "qualifying child" status; and (3) parents or relatives not eligible for "claimed dependent" status. In the third scenario, if a dependent is 17 or older they would not qualify for the additional $500. Moreover, if a taxpayer claimed a parent or any other relative age 17 or older on their tax return, that dependent would not receive a $1,200 payment. Further, the IRS also asked taxpayers to review the eligibility requirements for their family. The EIPs would not reduce a taxpayer’s refund or increase the amount they owe when they file a tax return early next year.
    Taxes after all are the dues that we pay for the privileges of membership in an organized society. - FDR

    #2
    Seems like the IRS is telling us here things we already know. If only they were as concerned about telling us the things we don't know.
    "You said it, they'll never know the difference. Come on, we'll paint our way out!" - Moe Howard

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      #3
      I wonder if they will change their interpretation to from AGI to MAGI and allow people to exclude things like amounts converted to Roth IRA's from AGI as is the case for IRA contribution limits.
      "Dude, you are correct" Rapid Robert

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        #4
        Originally posted by Rapid Robert View Post
        Seems like the IRS is telling us here things we already know. If only they were as concerned about telling us the things we don't know.
        This is what I am dealing with a few of my clients:

        However, if the student cannot be claimed as a dependent by their parents or anyone else for 2020, that student may be eligible to claim a $1,200 credit on their 2020 tax return next year.
        Taxes after all are the dues that we pay for the privileges of membership in an organized society. - FDR

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