Congress passed the 2nd stimulus bill at the end of 2020. Both stimulus checks were an advance credit for your 2020 tax return, The 2nd stimulus checks started going out at the very end of December 2020 and continued into early January 2021. When you fill out the recovery rebate credit it is important for you to enter the entire total of the amount you have received for yourself, your spouse, and your dependent children so far. Entering the wrong amount might delay your 2020 refund.
I RECEIVED ONE STIMULUS PAYMENT IN 2020 FOR $2400.00.
THAT IS THE ONLY STIMULUS PAYMENT I HAVE RECEIVED.
If you only received the first stimulus payment, then please enter 0 for the second stimulus payment in the recovery rebate form. If you are due a Recovery Rebate Credit, TurboTax will calculate this for you.
Please follow these steps to get to the recovery rebate form:
The Recovery Rebate Credit is calculated based on your 2020 income, whereas the stimulus payments were based your 2019 tax return or last return filed. If a taxpayers' situation changes in 2020, they could get a partial or the full stimulus payments based on their 2020 income.
Per the IRS, your Recovery Rebate Credit amount will be phased out if your adjusted gross income for 2020 exceeds $75,000 if you filing single. The credit phases out at a rate of 5% for AGI's over 75,000.