How do I enter the Recovery Rebate Credit for Line 30 of a 1040 return using worksheet view?

  • Article Type:
  • How To
  • Last Modified:
  • 05/03/2021

Objectives

To enter information for the Recovery Rebate Credit so it flows to the Form 1040, Line 30 using worksheet view.

Environment

  • CCH Axcess Tax
  • CCH ProSystem fx Tax
  • 1040
  • Recovery Rebate Credit Worksheet

Procedure

This video demonstrates how to enter the Recovery Rebate Credit for Form 1040 Line 30, how to view the Recovery Rebate Credit Worksheet, and how to suppress the Recovery Rebate Credit Worksheet for a 1040 return using worksheet view in CCH Axcess™ Tax or CCH® ProSystem fx® Tax.

To enter information for the Recovery Rebate Credit, do the following:
  1. Go to the Credits > Recovery Rebate Credit worksheet.
    • In Lines 1-11 - Recovery Rebate Credit, enter all applicable information.
  2. Calculate the return.

To see the worksheet calculating the credit flowing to Form 1040, Line 30, go to the Federal Government Forms > Worksheets > Rec Rebate - Recovery Rebate Credit Worksheet.
  • Note: The worksheet is printed even when a $0 credit is calculated. However, per the worksheet, only amounts greater than zero are printed on Form 1040, Line 30.

To suppress the Recovery Rebate Credit Worksheet, do the following:
  1. Go to the Credits > Recovery Rebate Credit worksheet.
    • In Line 12 - Suppress the Recovery Rebate Credit worksheet, select the checkbox.
  2. Calculate the return.

Additional Information

As of the 2020.02020 release (available on 1/24/21), the Recovery Rebate Credit Worksheet is prepared and printed in accountant and client copies for all individuals other than nonresident aliens.
  • Diagnostic 24587 is issued for all users other than nonresident aliens.
    • "Form 1040. The Recovery Rebate Credit Worksheet for Form 1040, Line 30 has been prepared. The economic impact payments used on Lines 5, 8, 16, and 19 have been calculated based on information within the return. The first economic payment is $XXXX and the second economic impact payment is $XXXX. Since the economic impact payments may have been calculated by the IRS under a different set of assumptions, review these amounts. Enter revisions and other information on Recovery Rebate Credit > Recovery Rebate Credit (Interview Form 1B)."
      • $XXXX = calculated amounts based on 2020 tax return information (EIP1 = $1200 for TP + $1200 for SP + $500 per qualifying dependent; EIP2 = $600 for TP + $600 for SP + $600 per qualifying dependent)
    • To clear the diagnostic, the user must enter the taxpayer's first economic impact payment AND the taxpayer's second economic impact payment. ZERO IS A VALID entry. The diagnostic will issue for a taxpayer that is a dependent of another. Zero is assumed for EIP1 and EIP2 but zero must be entered by the user for the first and second economic impact payment to clear the diagnostic.
  • The credit is not allowed for residents of a U.S. Territory (American Samoa (AS), Guam (GU), Puerto Rico (PR), the U.S. Virgin Islands (VI), and Northern Mariana Islands (MP)). It is assumed the taxpayer is a resident of a U.S. territory if the home state code is FC or XX and the state in the address section is AS, GU, PR, VI, or MP. An override is available if this assumption is incorrect.
  • Notice 1444 and 1444-B may show one amount rather than amounts for the taxpayer and spouse. The IRS indicates that the amount should be split between the taxpayer and spouse. It is not necessary to split the amounts in the software if reported as one amount.
  • Per the worksheet, EIP1 should be entered before any offset for past-due child support.
  • Repayments to the IRS should also be entered into the software if made. Taxpayer and spouse repayments entered will reduce the EIP1 and EIP2 received on the worksheet, Lines 16 and 19.
  • Dependents used are those on 1040, Page 1 with Column 4 checked for the child tax credit. There is no additional check for a valid SSN/ATIN. The child credit is based on the code entered for the dependent. An override is available for the number of qualifying children.
  • A check is made for a valid SSN for the taxpayer and spouse to answer Questions 2 and 4. The first payment made to qualifying widowers used a reduction threshold of $75,000. A technical correction changed the reduction threshold to $150,000. This is shown on the Recovery Rebate Credit Worksheet, Line 12.
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