Recovery Rebate Credit Tax Year 2021

[fpc]

I am working a tax return for a single individual who does not own a home and has no dependents.  She states that Social Security was her only income in 2021.  TurboTax has determined she is due a $1,400 Recovery Rebate Credit, which results in a Federal "refund" of $1,400.  I am not familiar with the credit and she has never received such a credit before.  

Is it reasonable that she would be due the refund?

Thank you! 

[DanP0428]

She is entitled to the money and needs to go back and file 2020 taxes to get the other two credits.

[AamilD · Accepted solution]

The $1,400 Recovery Rebate Credit was provided to individuals who met the eligibility criteria as part of the CARES ACT. To be eligible for the payment, an individual has to be

• US Citizen or US Resident Alien
• Cant be claimed as a dependent on another person's tax return
• Have a SSN Valid for Employment
• Since you stated, she is single then her Adjusted Gross Income cannot be more then $75,000

If she meets the criteria, she is eligible for the $1,400 Recovery Rebate Credit. However, for most individuals this payment was send around March 2021, and only those who did not receive it at that time, are eligible to claim it now. So please verify with her that she did not receive this payment in March or within few months after that in 2021 and if she could verify it with her bank statements. Additionally, if she did receive the payments then, she would have also gotten a Letter 6475 from the IRS in the mail which would have confirmed that she got the payments. This is an important verification which needs to be done, since if she did receive it and now it is being claimed again, this will result in delays since IRS will have to adjust the amounts.

Additionally, there were 2 additional payments issued in 2020 for $1,200 and $600 so if she did not receive those either, then she will have to file the 2020 Tax Return to claim those payments and if she already filed the 2020 Return then she can amend the return to claim those payments if she never got it.

[frankpc3]

She did receive the payments in 2020.  And I bet she received a payment in 2021, but she doesn't recall receiving the payment.  I need to help her sign into the IRS site that tracks those payments.

It seems the bottom line is that the vast majority of people who qualified for the stimulus checks, received them.  So prior to submitting a Federal return indicating the $1,400 is due, she best make very certain that she did not already receive the payment.

Thank you folks for helping with this. I didn't know how likely qualified individuals would have received the payment and therefore would not receive the payment as a part of their Federal return. 

[xmasbaby0]

The first EIP --or stimulus check--- was issued in 2020  It was for $1200 for adults and $500 for a dependent under the age of 17.   The IRS used information from either your 2019 or 2020 tax return to issue those checks so they could send them out in a hurry.

The 2nd EIP or stimulus was issued in late 2020 or early 2021 and was $600 for adults and $600 for dependents under age 17.

If you did not receive the 1st and/or 2nd stimulus check you can get it by filing a 2020 tax return and using the recovery rebate credit in Federal Review.   It will end up on line 30 of a 2020 tax return and will be added to your refund (or reduce your tax due).

The 3rd EIP--or stimulus check-- was sent out in mid-March or later in 2021 and was for $1400 per person--adults and dependents no age limit.

If you did not get the 3rd EIP payment you can get it by filing a 2021 tax return and using the recovery rebate credit in Federal Review.   The credit will go on line 30 of your Form 1040 and will add to your refund (or reduce your tax due).

Try checking your online account with the IRS

https://www.irs.gov/payments/your-online-account

[frankpc3]

Thank you for the link.  I'll work with her to check the status of her stimulus checks.