In some rare cases, a married couple filing a joint return may qualify for a full credit even if only one spouse has a valid Social Security number. This includes someone who was born or died in 2020. Did not receive the full amount of the credit through an Economic Impact Payment.Must have a Social Security number that is valid for employment before the 2020 tax return due date.Cannot have been a dependent of another taxpayer in 2020.In order to qualify for any of the credit on your 2020 tax return, you: If you are attempting to claim part or all of the credit on your 2020 tax return, the credit will be based on your 2020 tax information. This could have been from your 2019 tax return or your 2018 tax return if you had not already filed a 2019 return by the time the money was issued. Qualifying for the initial advance payments was based on the information that the government had at the time of distributing the payments. Who is eligible for the 2020 Recovery Rebate Credit? The good news is, if you received too much of the credit, you are not required to pay it back even if you file a 2020 tax return. You must file a 2020 tax return to claim any credit that you have not already received, even if you otherwise are not required to file a 2020 tax return. If you did not receive the credit or not enough of the credit through the stimulus payments, the only way to claim the proper amount is on your 2020 tax return.
The credit is available to those who did not receive the Economic Impact Payments or who received less than the full amount that they were eligible for. The government sent payments beginning in April of 2020 and a second round beginning in late December of 2020 and into 2021. The 2020 Recovery Rebate Credit is actually a tax year 2020 tax credit. This second stimulus payment distributed up to $600 per qualified recipient. The Consolidated Appropriations Act, 2021 (CAA) was signed into law on Decemand is also part of the 2020 tax credit even though the Economic Impact Payments from the Consolidated Appropriations Act weren’t sent out until 2021. Most of these payments went out to recipients in mid-2020.
The initial stimulus payment provided up to $1,200 per qualifying adult and up to $500 per qualifying dependent. The 2020 Recovery Rebate Credit is part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act that was signed into law in March of 2020. For information on the third coronavirus relief package, please visit our “ American Rescue Plan: What Does it Mean for You and a Third Stimulus Check” blog post.Īs Tax Day approaches, you may be wondering if you need to include your stimulus payments on your tax returns.
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