If you are referring to the Recovery Rebate Credit because you did not receive all of your stimulus payments, then here is the information on it.
The Recovery Rebate Credit is a credit that was authorized by the Coronavirus Aid, Relief, and Economic Security (CARES) Act. So, if you were eligible for an Economic Impact payment, commonly referred to as a stimulus payment, but did not receive one or you received less than the full amount as an advanced payment in 2020 then you can claim the Recovery Rebate Credit on your 2020 tax return.
Also see: Recovery Rebate
You will find input screens when you go to Federal review.
What is a Tax Credit
You can subtract Tax Credits from the amount of tax you owe.
As opposed to a Tax Deduction that will reduce your income before you figure the amount of tax you owe. A deduction will reduce your tax by reducing the amount of money you are being taxed on.
There are two types of tax credits:
- A nonrefundable tax credit means you get a refund only up to the amount you owe.
- A refundable tax credit means you get a refund, even if it's more than what you owe.
Examples are the Child Tax Credit, Earned Income Credit, Education Credit etc.
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