Do You Qualify for the Recovery Rebate Credit?
Millions of people over the past year have received Economic Impact Payments during the COVID-19 Pandemic, but millions who need it, have also gone without. With tax season among us, find out if you qualify for the Recovery Rebate Credit. The Recovery Rebate Credit is a special one-time benefit that most people received last
year in the form of an Economic Stimulus Payment. But people who did not receive the maximum amount of the Economic Stimulus Payment, and whose circumstances have changed, may be eligible now.
The IRS has put together a thorough explanation of how to know if you will qualify below:
The first two rounds of Economic Impact Payments were advance payments of the 2020 Recovery Rebate Credit. Most eligible people already received the payments and won't include this information on their 2020 tax return.
Who May Be Eligible to Claim the 2020 Recovery Rebate Credit?
If you didn't get a first and second Economic Impact Payment or got less than the full amounts, you may be eligible to claim the 2020 Recovery Rebate Credit and must file a 2020 tax return even if you don't usually file a tax return.
Claiming the Credit
To claim the 2020 Recovery Rebate Credit, you must file a 2020 tax return, even if you aren't required to file.
You must also know the amount of any first and second Economic Impact Payment you received.
Filing a 2020 Tax Return
File electronically and the tax software will help you figure your 2020 Recovery Rebate Credit.
Get details on electronic filing options:
Free Volunteer Income Tax Assistance (VITA) or Tax Counseling for the Elderly (TCE) – Find out if you're eligible for free tax preparation help with IRS-certified volunteers.
Tax Professionals – Find how to choose a qualified tax preparer.
The Recovery Rebate Credit Worksheet in the 2020 Form 1040 and Form 1040-SR instructions can also help determine if you are eligible for the credit and how much you can claim.
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 alternative financial products for your direct deposit and will need to provide routing and account numbers.
The fastest way to get your Recovery Rebate Credit (sent as a tax refund) is to file electronically and have it direct deposited into your financial account. You can use a bank account, prepaid debit card or alternative financial products for your direct deposit. You will need to provide routing and account numbers.
Finding the amount of your first and second Payments
You will need the amount of any first and second Economic Impact Payments you received to calculate your 2020 Recovery Rebate Credit amount using the RRC Worksheet or tax preparation software.
Find the amount of your first and second Economic Impact Payments:
View Your Online Account – Securely access your individual tax information with an IRS online account including your first and second Economic Impact Payment amount.
IRS letters – IRS mailed Notice 1444 for the first Economic Impact Payment, and we are mailing Notice 1444-B for the second Economic Impact Payment to the address we have on file.
Refer to this information when you complete your 2020 tax return. If you're eligible for the 2020 Recovery Rebate Credit, you will use the information in your tax preparation software or on the 2020 Recovery Rebate Credit Worksheet to calculate your credit amount.
Any first and second Economic Impact Payments we issued to you will reduce the amount of 2020 Recovery Rebate Credit you are eligible for.
For more information on whether or not you qualify for a Recovery Rebate Credit, or for help filing your 2020 taxes, please contact Handle It today at https://www.handle.it/contactustoday or give us a call at 833-202-7676.