DMarkM1
Expert Alumni

Retirement tax questions

The entire amount of the Recovery Rebate Credit that you are eligible for is added to your return initially.  After that when you input stimulus payment amounts you have already received, the credit is reduced accordingly on your return.  

 

The reduction will never be more than the credit you are eligible for.  You can test this by putting in stimulus amounts above what you are eligible for.  You will see the reduction stops at the credit amount.  

 

To recap the eligibility amounts:

 

Round one:   $1200 (2400 if filed jointly) plus $500 for each dependent age 16 or under.

Round two:  $600 (1200 if filed jointly) plus $600 for each dependent age 16 or under.

 

Here is a link with more information on the Recovery Rebate Credit.

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