If you’re preparing to file your 2020 tax return, there are some new things to consider when filing your return! One of those things is the Recovery Rebate Tax Credit! Taxpayers may be able to claim the recovery rebate tax credit if they met the eligibility requirements! The credit was authorized by the CARES Act of 2020. It is for any eligible individual who did not receive the full amount of the recovery rebate as an advance payment. This was known as the Economic Impact payment.
You can apply for this credit for several different reasons. The first one is you did not receive an Economic Impact Payment at all in 2020. You can also apply if you did not receive the full amount you were due. This could be if you were filed your return as single and did not receive the full $1,200, if you were married filing jointly and did not receive $2,400 or if you didn’t receive $500 for each qualifying child.
There are some eligibility requirements you must meet to claim the credit as well. You must be a U.S. Citizen or U.S. resident alien and must have a valid Social Security number. Your adjusted gross income must not exceed $150,000 if you are married and filing a joint return, $112,500 if you are filing as head of household, or $75,000 for eligible individuals using any other filing status. If you are claimed as a dependent on another taxpayer’s tax return you cannot claim the credit.
To claim the recovery rebate credit, you will need to claim it on your 2020 Form 1040 or 1040-SR. These forms can be used by people who are not required to file tax returns but are eligible for the credit.
If you haven’t received your economic impact payment and aren’t sure if you will, you can check the status of your payment by using the Get My Payment application.