Recovery Rebate Credit with change in filing status

[Tax_newbie1]

Hi, I am recently divorced (in December 2021) and will be filing HoH (with 3 kids) for 2021.  While married, my husband and I never received any stimulus payments due to our combined income being over the eligibility threshold.  When completing my taxes in TurboTax, I answered that I had not received any stimulus payments and now I'm getting a huge refund due to my sudden eligibility for this Recovery Rebate Credit.  I'm just confused - since I wasn't eligible at the time that the payments were made (i.e. March 2021), how can I receive this benefit now?  Does this seem correct?  Hope I'm explaining this clearly - I'm just freaking out at getting a massive refund unexpectedly. Thanks!

[DoninGA]

The Recovery Rebate Credit that was sent out by the IRS in 2021was based on the 2020 tax return on file with the IRS.  

Since you are no longer married on your 2021 tax return and if your income in 2021 makes you eligible for the 2021 Recovery Rebate Credit there is no issue with you receiving the credit on your 2021 tax return.

Go to this IRS website for information on the 2021 Recovery Rebate Credit - https://www.irs.gov/newsroom/recovery-rebate-credit

[Tax_newbie1]

Thanks, that what I thought but wanted to make sure I wasn't misinterpreting anything.  Seems to good to be true!!!

[fanfare]

You are also eligible for the updated child tax credits if your children are young enough. See Form 1040 line 28.