IRS Publishes FAQ on the Recovery Rebate Credit

From IRS.gov.

Most individuals eligible for the Recovery Rebate Credit have already received the full amount in two rounds of payments, known as Economic Impact Payments.

If we issued you the full amount of each Economic Impact Payment, you won’t need to claim the Recovery Rebate Credit or include any information related to it when you file your 2020 tax return because we already issued your Recovery Rebate Credit as Economic Impact Payments.

If you’re eligible for the credit, and either we didn’t issue you any Economic Impact Payments or we issued less than the full amounts, you must file a 2020 tax return to claim the Recovery Rebate Credit even if you are not required to file a tax return for 2020.

Economic Impact Payments were based on your 2018 or 2019 tax year information. The Recovery Rebate Credit is similar except that the eligibility and the amount are based on 2020 information you include on your 2020 tax return.

You will need to know the amount of any Economic Impact Payments issued to you to claim the Recovery Rebate Credit. If you’re eligible for the Recovery Rebate Credit on your 2020 tax return, it will be reduced by any Economic Impact Payments we issued to you. Always be complete and accurate when you file a return.

File electronically and the tax software will help you figure your Recovery Rebate Credit. Visit IRS.gov/filing for details about IRS Free FileFree File Fillable Formsfree VITA or TCE  tax preparation sites in your community or finding a trusted tax professional. 

The Recovery Rebate Credit Worksheet in the Form 1040 and Form 1040-SR instructions can also help  determine if you are eligible for the credit.

Anyone with income of $72,000 or less can file their Federal tax return electronically for free through the IRS Free File Program. The fastest way to get your tax refund is to file electronically and have it direct deposited – contactless and free – into your financial account. You can use a bank account, prepaid debit card or mobile app for your direct deposit and will need to provide routing and account numbers.

For more detailed information see the Recovery Rebate Credit Frequently Asked Questions.

See the Instructions for Form 1040 and 1040-SR for more information. 

You will need to know the amount of the Economic Impact Payments issued to you to claim the Recovery Rebate Credit.

Finding the amount of my Economic Impact Payments

If eligible for the Recovery Rebate Credit, you will need the amount of any Economic Impact Payments you received to calculate your Recovery Rebate Credit amount using the RRC Worksheet or your tax preparation software.

Get the information you need from your account

Log in to your Federal tax account information online to view what you may need when you electronically file your 2020 tax return (Form 1040 or Form 1040-SR). Two important reasons to have an account now are:

  • Individuals with an account on IRS.gov/account can view the amounts of the Economic Impact Payments they received.
  • Some people will also need the amount of their adjusted gross income from 2019 if they use different software to file their tax returns for 2020.

You’ll need this information to file your tax return for 2020 if you are eligible for the Recovery Rebate Credit. Visit Secure Access now to prepare and set up your own Federal tax account online.

IRS letters

You should have received IRS Notice 1444 for the first Economic Impact Payment, and we are mailing Notice 1444-B for the second Economic Impact Payment.  Refer to them when completing your 2020 tax return. If eligible for the Recovery Rebate Credit, you will use the information from these letters to determine the amounts to include on the Recovery Rebate Credit Worksheet or in your tax preparation software to help you calculate your credit amount.

Get the information you need from your online account

If you don’t have your notices, you can view the amounts of your first and second Economic Impact Payments through your online account. You can also see information from your most recently filed tax return through your online account.

If you have questions about how to create an account or how to reset your username or password, see Secure Access: How to Register for Certain Online Self-Help Tools.

Feel free to leave a comment. DO NOT PROVIDE PERSONAL INFORMATION, as your comment will be shared on irsofficesearch.org.

If you need help with tax debt, consider calling the Tax Debt Relief Hotline* @ (888)219-1718