Support CenterForm 1040: Recovery Rebate Credit Wkt 8 - How does the Recovery Rebate Credit work? It is reducing the refund when using SureFire
Every tax payer based on their filing status and number of dependents will receive a rebate credit. For this reason you will notice in your software that there is a worksheet 8 and before you even add the wages etc to the return, it will show a refund equally to the amount of the applicable rebate credit for taxpayer and dependents
This credit is reduced by any economic impact payments the taxpayer and dependents received. If the taxpayers and dependents already received stimulus checks EP 1 and stimulus checks EP 2, you will notice that as soon as you enter this information the refund will decrease.If they did not get the EP1 and or EP 2, it will be included in their refund.
Worksheet 8 will not auto calculate for every different taxpayer situation, therefore, you can override the lines based on the situation for your taxpayers to determine whether or not they should get a recovery rebate.
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