Retirement tax questions

Per the IRS, if an error was made on your tax return in regards to the Recovery Rebate Credit, do not file an amended tax return. If a mistake was made, the IRS will calculate the correct amount of the Recovery Rebate Credit, make the correction to your tax return and continue processing your return. You can confirm this at the IRS page - 2020 Recovery Rebate Credit — Topic G: Correcting issues after the 2020 tax return is filed.

As stated above by DMarkM1, this will not cause problems with the IRS as it is a very common occurrence due to the timing of payments (for example: some individuals filed their returns before they got their second stimulus payment) . This type of error on your return will not prevent you from receiving the third economic stimulus payment. 

Those eligible will automatically receive an Economic Impact Payment of up to $1,400 for individuals or $2,800 for married couples, plus $1,400 for each dependent. Unlike EIP1 and EIP2, families will get a payment for all their dependents claimed on a tax return, not just their qualifying children under 17. Normally, a taxpayer will qualify for the full amount if they have an adjusted gross income of up to $75,000 for singles and married persons filing a separate return, up to $112,500 for heads of household and up to $150,000 for married couples filing joint returns and surviving spouses. Payment amounts are reduced for filers with incomes above those levels.

Generally, if you are a U.S. citizen or U.S. resident alien, you are eligible for the full amount of the third Economic Impact Payment if you (and your spouse if filing a joint return) are not a dependent of another taxpayer and have a valid Social Security number (see exception when married filing jointly) and your adjusted gross income (AGI) on their tax return does not exceed:

• $150,000 if married and filing a joint return or if filing as a qualifying widow or widower
• $112,500 if filing as head of household or
• $75,000 for eligible individuals using any other filing statuses, such as single filers and married people filing separate returns.

Payments will be phased out – or reduced -- above those AGI amounts. This means taxpayers will not receive a third payment if their AGI exceeds:

• $160,000 if married and filing a joint return or if filing as a qualifying widow or widower
• $120,000 if filing as head of household or
• $80,000 for eligible individuals using other filing statuses, such as single filers and married people filing separate returns.

Most eligible people will get the third Economic Impact Payment automatically and won't need to take additional action. The IRS will use available information to determine eligibility and issue the third payment to eligible people who:

• Filed a 2020 tax return.
• Filed a 2019 tax return if the 2020 return has not been submitted or processed yet.
• Did not file a 2020 or 2019 tax return but registered for the first Economic Impact Payment using the special Non-Filers portal last year.

The IRS will be issuing the third round of payments throughout 2021. If you didn't receive one yet, it doesn't mean you won't. Keep in mind that that the third Economic Impact Payment is based on your 2020 tax return or if your 2020 tax return is not processed when determining your eligibility, your 2019 tax return or information you entered on the Non-Filers tool on IRS.gov last year. If you did not file a 2020 or 2019 return but were an eligible federal benefit recipient, your payment is based on you being an eligible federal benefit recipient.

IRS will also issue additional payments to those who received a third payment based on a 2019 tax return and who are eligible for an additional amount based on their 2020 tax return.

Questions and Answers about the Third Economic Impact Payment — Topic G: Receiving My Payment

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