Is the Recovery Rebate Credit applicable for the third round of stimulus payments distributed in March 2021? TurboTax only provides fields for 1st and 2nd round payments.

[finance5]

If I can't apply for the credit in my 2020 return, when/how can I apply the difference in expected credit for the 3rd payment?

[MaryK4]

The IRS has not released the final details on the 3rd stimulus, but they are not included in the Recovery Rebate Payment that you can claim on your 2020 tax return for the first and second stimulus payments.  See More details about the third round of Economic Impact Payments.

[Anonymous]

Any news on Recover Rebate Credit? We have a baby born in 2020 and claim rebates through Turbotax for the first two rounds, but I don't see the third one in the software. Should we expect it? I do not file yet waiting for some changes since the $1400 credit is really wanted. Thanks!

[ErnieS0]

The third stimulus is coming out this year (2021) so the payment is not part of the 2020 income tax return which we are all filing now.

If you had a baby in 2020 it was important to FILE NOW. Otherwise the IRS will not know you had an addition to your family unless you file.

The IRS says, "If your third payment does not include a payment for your qualified dependent who did not receive a third payment, you must file a 2020 tax return to be considered for an additional third payment even if you don't normally file."

Filing also puts you in line for the $3,600 child credit for children under 6. If you wait you may miss this payment when it come out, which is expected to be sometime this summer.

[Anonymous]

Thanks! That makes real sense

[finance5]

Update on this for those in a similar situation: We had a baby in 2020 and so did not receive the full stimulus payment amounts because the IRS based our payments on our 2019 return. We successfully claimed the rebate credit for EIP 1 and EIP 2 when filing our 2020 return. After e-filing our 2020 return, we received an additional $1,400 for our new dependent born in 2020—this is the balance remaining on EIP 3 so we now have received the full amount on all stimulus payments.

To recap on the timeline in case this is helpful for others:

1. Received EIP 3 payment via direct deposit which was short additional amount due for new dependent (3/17)
2. E-filed 2020 federal return including Recovery Rebate Credit details for EIP 1 and EIP 2 (3/20)
3. Received expected federal refund via direct deposit (3/31)
4. Received $1,400 make-up EIP 3 payment for new dependent born in 2020 via direct deposit (4/7). [This was unexpected as we took no additional action besides filing our 2020 return to receive this make-up payment. It seems the IRS is reviewing 2020 returns and comparing them to EIP 3 payments already issued and making additional payments as needed based on new info.]