Recovery Rebate Credit

[dmorasch]

I am in the process of completing our joint 2020 tax return but I am confused about the Recovery Rebate Credit.  It is my understanding that the first and second stimulus payments were based on our 2019 tax return.  Our 2019 return indicated that we were only to receive a portion based on our total income and nothing based on the second stimulus.  We did receive a partial payment from the first stimulus.  However, while completing our 2020 return Turbotax wants to give us a tax credit for the second stimulus amount.  Our 2020 income is significantly less than 2019.  Should we be getting a Recovery Rebate Credit based on our reduced 2020 return?

[DoninGA · Accepted solution]

The Recovery Rebate Credit is based on your 2020 Adjusted Gross Income (AGI)

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

Economic Impact Payments were based on your 2018 or 2019 tax year information. The Recovery Rebate Credit is similar except that the eligibility and the amount are based on 2020 information you include on your 2020 tax return.

[DaSavage2112]

I receive SSDI and I never received my first stimulus check due to moving and I filed my 2020 taxes in order to file for the recovery rebate credit which was approve just for me to later find out my refund was garnished due to back owed child support.. Iv very confused how this was possible and why I am not getting my first $1,200 stimulus check and also why have I not received my $1,400 stimulus check yet and why doesn't it hve any information besides"Payment Status Unavailable" on the Get My Payment IRS tool. Being on SSDI im already on a very very limited income as is.. I could REALLY use both the $1,200 and $1,400 stimulus payments and don't see how I could possibly get $2,600 garnished from me yet NOBODY else I know on SSDI is getting any money garnished. I received the $600 stimulus check just fine. No issues at all so I am very confused and can't get through to the IRS over the phone.. 

[DianeW777]

Your 2nd stimulus payment, approved in December 2020 and 3rd stimulus payment approved March 2021 cannot be garnished to pay child support. Under the CARES Act, your 1st stimulus payment approved April 2020 could be garnished, however the rule was changed for the 2nd and 3rd payments.