We’re officially a month into tax season and many people are wondering whether they qualify for the Recovery Rebate Credit. In 2020, in response to the coronavirus outbreak, the IRS and Treasury Department began issuing Economic Impact Payments to assist with financial recovery due to the pandemic. As of now, most Americans have received their stimulus payments. However, not everyone has received their payment, and even some who did, did not receive the full amount. If you aren’t sure if you qualify, don’t worry! At Reliance Tax Group, answering your questions is our top priority!
Do I Qualify for the Recovery Rebate Credit?
The qualifications for the Recovery Rebate Credit are the same as they were for the Economic Impact Payments. The only difference is that the Economic Impact Payments were based off of 2018/2019 tax returns and the Recovery Rebate Credit is based off of your 2020 return.
According to the IRS website, you should have received the full amount if:
- Your first Economic Impact Payment was $1,200 ($2,400 if married filing jointly) plus $500 for each qualifying child; and
- Your second Economic Impact Payment was $600 ($1,200 if married filing jointly) plus $600 for each qualifying child.
For more eligibility questions, visit the IRS website.
If you have already received the full amount of your stimulus check, you do not need to do anything on your tax return – as your credit has already been issued as an Economic Impact Payment.
What Do I Do if I Qualify?
If you qualify for the Recovery Rebate Credit, you must include this information in your tax return. If you received a partial payment for the Economic Impact Payment, you will need to know the exact amount that was issued to you.
We’re Here To Help
As always, if you are unsure of your eligibility, Reliance is here to help! Call us at (720) 452-2915 or visit our website for more information!
