Calculate the Recovery Rebate worksheet
By default, the worksheet and credit will always calculate. Critical diagnostics print when a recovery rebate credit is calculated but no EIP is entered. You can change this default to calculate only when EIP data is entered.
- SelectSetup, then1040 Individual.
- SelectOther Return Optionsand go to theReturn Presentationtab.
- Mark theDefault Recovery Rebate Worksheet to only calculate when EIP data existscheckbox, then selectOK. TheDefault Recovery Rebate Worksheet to only calculate when EIP data existswill proforma from 2020.
- Go to theCrscreen in theCreditsfolder.
- Enter the amount the taxpayer received for EIP3. This can be 0. The amount will be used on the worksheet. The following things are also considered when calculating this worksheet and credit:
- Taxpayer or spouse Social Security fields that contain the following are treated as an invalid social security number for lines 2 through 4.
- ITIN - begins with 9
- Applied for
- W7 Attached
- Blank
- Form 1040NR return and 1040/SR returns that have the following state codes on Screen 1040 don't calculate the worksheet.
- AS: American Samoa
- GU: Guam
- PR: Puerto Rico
- VI: Virgin Islands
- MP: N Mariana Islands
- The Filing Status Optimization tool splits the EIP amounts as follows:
- When amounts are only entered in theTaxpayerorJointcolumn, the tool splits the amounts between taxpayer and spouse.
- When there are amounts in both theTaxpayer/JointandSpousefields, the tool reports theTaxpayer/Jointfield in the taxpayer's return and theSpousefield amounts in the spouse's return.
