2021.02.22 Broadcast - Recovery Rebate Credit
Recovery Rebate Credit
The IRS announced last week that, as required by law, all legally permitted first and second round of Economic Impact Payments have been issued. Get My Payment was updated on January 29 to reflect the final payments and will not be updated again. If individuals didn’t receive all or part of their payment, they may be eligible to claim the Recovery Rebate Credit with their 2020 tax return.
Claiming the wrong amount of the Recovery Rebate Credit will cause the return to require additional IRS review which will delay refund processing. Taxpayers can confirm their stimulus payments either by referencing IRS-mailed Payment Confirmation Notices 1444 and 1444-B, checking their bank account activity, creating/viewing their online account, verifying issued payments through the Get My Payment tool, or requesting an account transcript.
Eligibility for the RRC is based on 2020 tax year information, while the Economic Impact Payments were based on 2019 (or 2018) information.
Watch this video for data entry tips on the Recovery Rebate Credit.
Watch video: Recovery Rebate Credit
Additional RRC information on IRS.gov: https://www.irs.gov/newsroom/recovery-rebate-credit