Your 2020 AGI controls the recovery rebate credit. The IRS had to hurry and send out those checks last year so they used 2018 or 2019 returns. If you received the stimulus money and had more income in 2020 you do not have to pay it back. But if you did not receive the 1st or 2nd stimulus check---the IRS does not go backwards now and use your 2018 or 2019 AGI to give it to you. Only your 2020 income determines whether you get that stimulus money.
The criteria per the IRS for the 1st and 2nd stimulus:
A1. Generally, if you are a U.S. citizen or U.S. resident alien, you will receive an Economic Impact Payment of $1,200 ($2,400 for a joint return) if you (and your spouse if filing a joint return) are not a dependent of another taxpayer and have a Social Security number valid for employment and your adjusted gross income (AGI) does not exceed:
- $150,000 if married and filing a joint return
- $112,500 if filing as head of household or
- $75,000 for eligible individuals using any other filing status
Your payment will be reduced by 5% of the amount by which your AGI exceeds the applicable threshold above.
You are not eligible for a payment if any of the following apply to you:
- You may be claimed as a dependent on another taxpayer’s return (for example, a child or student who may be claimed on a parent’s return or a dependent parent who may be claimed on an adult child’s return).
- You do not have a Social Security number that is valid for employment.
- You are a nonresident alien.
The following are also not eligible: a deceased individual or an estate or trust.
**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
