How do I clear red message 0006 regarding the recovery rebate credit (economic stimulus payment)?
Due to COVID-19, most eligible taxpayers received economic impact payments during 2020. The first EIP was issued in summer 2020 and the second was scheduled to be issued between December 2020 and January 2021. To ensure that all eligible taxpayers received the proper amount, an entry must be made* on the 2020 tax return to reconcile the EIP amounts received with the amounts for which the taxpayer is eligible. If the taxpayer received a lower amount for the payments (or did not receive the stimulus payments at all), they may be eligible to claim the recovery rebate credit on their 2020 tax return.
The first EIP was issued in the following amounts: $1200 per taxpayer ($2400 for joint filers) and $500 for each qualifying child. The second EIP was issued in the following amounts: $600 per taxpayer ($1200 for joint filers) and $600 for each qualifying child.
EF Message 0006 states:
Review data entry: No economic stimulus payment was entered on screen RRC (Recovery Rebate Credit). Return to screen RRC, available on the first "Credits" tab of the Data Entry Menu, and enter the amount of economic stimulus payment that the taxpayer (and spouse, if appropriate) received. If no economic stimulus payment was received, enter "0" (zero) in the field so that the correct amount of credit can be calculated.
The RRC screen has two fields, one for each EIP amount received.
- Enter the first payment in the box Enter the amount, if any, of the economic stimulus payment you received (before offset). This was generally received in Summer 2020. This amount can be found on Notice 1444.
- Enter the second payment in the box Enter the amount, if any, of the second economic stimulus payment the taxpayer received (before offset). This was generally received late December 2020 or early January 2021. This amount can be found on Notice 1444-B
- Per the Consolidated Appropriations Act, 2021, the second EIP amount is required to be issued no later than January 15, 2021.
If the taxpayer did not receive any amount of economic stimulus payment, enter a zero (0) in the box(es).
In view mode, Wks Recovery Rebate calculates whether the taxpayer is eligible for an additional credit on Form 1040, line 30. If you are expecting an additional credit to be calculated and it is not, review the requirements and limitations detailed in Related Links below.
*If the income on the return is over the applicable phase-out threshold, no entry is required on the RRC screen.
For more information about the recovery rebate credit, see the IRS instructions, Topic J, and Notice 1444. For a demonstration, watch the video Recovery Rebate Credit.