@Kamcginty -
because the law required the Recovery Credits to be based on the 2021 tax return, which obviously wasn't available when the stimulus payments were made last spring.
So the stimulus payments of last spring used the information for the 2020 (or 2019) tax return to ESTIMATE what you were due.
the 2021 tax return is used to ACTUALLY determine what you are due; the difference, but not less than zero ends up on Line 30 (if you were sent too much last spring, you are not required to return it my law)
Think of the family that had their first child in 2021. When the stumulus payments went out last spring, they received $2800, even though they are entited (because Baby is on the 2021 tax return but not on the 2020 or 2019 tax return) to $4200. THAT is an example of why this reconciliation had to be on the 2021 tax return - some people were entitled to more than they received last spring.
did you file "joint"????? -
