Recovery Rebate

[JameM]

I'm looking for a clear answer to a common question about the recovery rebates. 

In 2021 I filed jointly with my wife and 2 kids (4 people total), and received $2800 in EIP.

I also checked my transcript/return from 2021, and line 30 is empty and so is the Recovery Rebate Verification.

Questions: was that $2800 amount correct in 2021? If not, do we qualify for the rest based on the info I stated above? 

[DawnC]

It depends on your 2021 income.   The credit amount begins to be reduced at the same income thresholds as the 2020 Recovery Rebate Credits, for example with adjusted gross income of more than $75,000 if filing as single or $150,000 if filing as married filing jointly. 

However, the 2021 Recovery Rebate Credit amount is fully reduced to $0 more quickly.   For example, individuals can't claim any credit with adjusted gross income of $80,000 or more if filing as single or $160,000 or more for if filing as married filing jointly.   Due to these new income limitations, some individuals won't be eligible to claim the 2021 Recovery Rebate Credit even if they received a 2020 stimulus payment.    

See IRS FAQs 2021 Recovery Rebate

[fanfare]

If you use tax software, it will calculate the phaseout and put the rebate for which you are eligible on Line 30

OR you can force Line 30 to the full amount.

IRS reviews returns with an amount on line 30 extremely carefully for eligibility.

[JameM]

We filed married jointly, making way less than 75k. Claiming 2 kids under 19.

[JameM]

Used Turbo Tax service, but I'm still confused by the line being blank along with the "rebate recovery validation" line being blank. I read online that if line 30 was blank or -0- that we were owed something. Then I read if both line 30 and the" recovery rebate validation"  lines were blank, then we got nothing. I just need clarification. 

[VolvoGirl · Accepted solution]

EIP3 The 3rd Stimulus payment started going out in March 2021 and was for 1,400 for each person listed on your tax return, no age limit. The IRS used your 2020 (or 2019) return to send the checks out fast. If your 2021 return changes and you qualify for more you can claim the extra as the Recovery Rebate Credit on 1040 line 30. But line 30 is only if you didn't get the full amount or qualify for more. Not the amount you already got. The IRS also sent out letter 6475 to tell you how much they sent you . If you are married then each spouse should get a letter for half.

If you filed Joint with 2 dependents you should have received 5,600 (4x1400).  So if your 2021 line 30 was zero or blank you must have answered that you got the full amount. . I would double check all your bank deposits in 2021 and Check your IRS account to see when and what they sent you (check both spouse's accounts if married).  If your IRS account says 2,800 that was only half.  Your spouse’s account should show the other half 2,800.

Your Online Account | Internal Revenue Service

If the IRS thinks they sent it to you but you didn't get it request a trace for a missing third Stimulus payment

https://www.irs.gov/newsroom/questions-and-answers-about-the-third-economic-impact-payment-topic-j-p...Your Online Account | Internal Revenue Service