This will be a frustrating tax season for a lot of reasons. But the overarching concern for millions of Americans will be how to claim their stimulus payments.
And it’s all going to come down to what people put on Line 30 on their tax form. That’s the line on Page 2 where you claim the “Recovery Rebate Credit,” better known to struggling households as the stimulus payment.
Here’s what you need to know about claiming a stimulus payment on your tax return this year.
Who has to fill in Line 30
If you received the full amount due for the first and second round of stimulus payments, including any payments for eligible children, you don’t have to do anything.
“You only make an entry on Line 30 if you are actually claiming the credit,” according to IRS spokesman Eric Smith. “Otherwise, you leave it blank. “If you already know you already got the full amount, there’s no reason to bother with any of it.”
There’s already been some confusion — even among tax professionals — about Line 30, with one preparer telling me he thought people had to put down how much they received for both payments. He was wrong.
You may claim the credit if you didn’t get a stimulus payment or if you didn’t get the full amount you were due for yourself or for any eligible children, says Lisa Greene-Lewis, a certified public accountant and tax expert for TurboTax.
The stimulus payments were based on your 2018 or 2019 tax year information. However, the eligibility for the recovery rebate credit is based on your adjusted gross income on your 2020 tax return. So, if you earned too much and didn’t get advance stimulus payments but your income dropped last year, you may still be eligible to claim the credit when you file your return.
What exactly do I put on Line 30?
You will only fill in the amount of the total credit you are due from either the first or second round or both. If you received a partial payment you would include the balance of the credit you are owed.
