When the IRS processes your 2020 tax return, if you are claiming the Recovery Rebate Credit, the IRS determines your eligibility and amount based on your 2020 tax return information. Generally, the credit can increase your refund amount or lower the taxes you may owe. If you did not receive a first or second stimulus check or received less than the full amount you may be eligible for the 2020 Recovery Rebate Credit (RRC). For payments made in 2021, you can claim the Recovery Rebate Credit on your 2021 tax return. So, if you were eligible for an Economic Impact P ayment (EIP), commonly referred to as a stimulus payment, but did not receive one or you received less than the full amount as an advanced payment in 2020 then you can claim the Recovery Rebate Credit on your 2020 tax return. The Recovery Rebate Credit is a credit that was authorized by the Coronavirus Aid, Relief, and Economic Security (CARES) Act. We have you covered and are here to share some information regarding Recovery Rebate Credits so you can feel more informed and possibly save money on your 2020 or 2021 taxes. With all the information covering the stimulus checks and payments you may have heard the phrase Recovery Rebate Credit thrown around and are wondering, “what is the Recovery Rebate Credit?” or “Do I qualify for the Recovery Rebate Credit?”ĭon’t worry about knowing answers to these questions.
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