MarathonMike
Diamond Member
As I finalize our 2020 returns there were some surprises I thought I'd share FYI. First, I found that the IRS comments on reporting EIP payments received is incorrect, or at least out of date. I verified this with TurboTax support. There is a worksheet for stimulus rebate that requires you to enter any previous EIP payments as income, which I think is fair. However this contradicts this statement I pulled from IRS.gov:
A11. No, the payments are not includible in your gross income. Therefore, you will not include the payments in your taxable income on your Federal income tax return or pay income tax on your payment. They will not reduce your refund or increase the amount you owe when you file your 2020 Federal income tax return.
These payments will not affect your income for purposes of determining eligibility for federal government assistance or benefit programs.
So there's that. There is also no mention of the college age dependent stimulus on the rebate worksheet. It is still 17 and under.
Finally for those of use taking 401K dispersements and getting SSI, they are allowing you to spread the tax payment over 3 years. For me that was a big difference but may not be for most folks.
A11. No, the payments are not includible in your gross income. Therefore, you will not include the payments in your taxable income on your Federal income tax return or pay income tax on your payment. They will not reduce your refund or increase the amount you owe when you file your 2020 Federal income tax return.
These payments will not affect your income for purposes of determining eligibility for federal government assistance or benefit programs.
So there's that. There is also no mention of the college age dependent stimulus on the rebate worksheet. It is still 17 and under.
Finally for those of use taking 401K dispersements and getting SSI, they are allowing you to spread the tax payment over 3 years. For me that was a big difference but may not be for most folks.
