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.
  1. Select
    Setup
    , then
    1040 Individual
    .
  2. Select
    Other Return Options
    and go to the
    Return Presentation
    tab.
  3. Mark the
    Default Recovery Rebate Worksheet to only calculate when EIP data exists
    checkbox, then select
    OK
    . The
    Default Recovery Rebate Worksheet to only calculate when EIP data exists
    will proforma from 2020.
  4. Go to the
    Cr
    screen in the
    Credits
    folder.
  5. 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:
    1. 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
    2. 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
    3. The Filing Status Optimization tool splits the EIP amounts as follows:
      • When amounts are only entered in the
        Taxpayer
        or
        Joint
        column, the tool splits the amounts between taxpayer and spouse.
      • When there are amounts in both the
        Taxpayer/Joint
        and
        Spouse
        fields, the tool reports the
        Taxpayer/Joint
        field in the taxpayer's return and the
        Spouse
        field amounts in the spouse's return.
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