Recovery Rebate Tax Credit | Most Frequently Asked Questions

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In this video, I cover the most frequently asked questions in regards to the Recovery Rebate Tax Credit. Including:
1. If I normally do not file or have to file a tax return, how do I claim the credit?
2. What are the eligibility requirements for the credit?
3. Who is not qualified for the credit?
4. Who may be qualified for the credit?
5. Are my stimulus payments taxable if based on my 2020 income tax return, I no longer qualify?
6. Are individuals who died in 2020 or 2021 eligible for the credit?
7. Will the IRS calculate my credit if I leave Line 30 blank?
8. What if I calculate the credit incorrectly?
9. Who is a qualified child?
10. What is the timing of the recovery rebate and tax refunds?

IRS Free File:
IRS Announcement:
IRS Recovery Rebate FAQ:

Eligible individuals can claim the Recovery Rebate Credit on their 2020 Form 1040 or 1040-SR. These forms can also be used by people who are not normally required to file tax returns but are eligible for the credit.

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The Recovery Rebate Credit is authorized by the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Any eligible individual who did not receive the full amount of the recovery rebate as an advance payment, also known as an Economic Impact Payment, can claim the Recovery Rebate Credit on a 2020 Form 1040 or Form 1040-SR.

Generally, this credit will increase the amount of your tax refund or lower the amount of the tax you owe.

Who Qualifies for the Recovery Rebate Credit?
The Recovery Rebate Credit is figured like the 2020 Economic Impact Payment, except that the credit eligibility and the credit amount are based on the tax year 2020 information shown on the 2020 tax returns filed in 2021.

Generally, you are eligible to claim the Recovery Rebate Credit, if you were a U.S. citizen or U.S. resident alien in 2020, are not a dependent of another taxpayer for tax year 2020, and have a social security number valid for employment that is issued before the due date of your 2020 tax return (including extensions).

You can take the Recovery Rebate Credit for any recovery rebate amount that is more than the Economic Impact Payment you received in 2020 by completing line 30 of your 2020 Form 1040 or 1040-SR.

You do not need to complete information about the Recovery Rebate Credit on your 2020 Form 1040 or 1040-SR if either of the following apply:

You received $1,200 plus $500 for each qualifying child you had in 2020, or
You're filing a joint return for 2020 and, together, you and your spouse received $2,400 plus $500 for each qualifying child you had in 2020.
You may be able to claim the Recovery Rebate Credit if:
You are eligible but were not issued an Economic Impact Payment, or
Your Economic Impact Payment was less than $1,200 ($2,400 if married filing a joint return) plus $500 for each qualifying child you had in 2020.
Taxpayers residing in American Samoa, Guam, Puerto Rico, the U.S. Virgin Islands, and the Northern Mariana Islands
In general, the tax authorities in these five U.S. territories will provide the Recovery Rebate Credit to eligible residents. Territory residents should direct questions about Economic Impact Payments received in 2020 or the 2020 Recovery Rebate Credit to the tax authorities in the territories where they reside.

As was the case with the advance payment of the credit called the Economic Impact Payment, your recovery rebate is up to $2,400 if you file a joint tax return or up to $1,200 for all other eligible individuals. Those with qualifying children will receive up to an additional $500 per qualifying child. Your recovery rebate amount will be phased out if your adjusted gross income for 2020 exceeds $150,000 if you are married filing a joint return, $112,500 if you are using the head of household filing status, or $75,000 if you are using any other filing status.

Please note that this video is for information purposes only and is not intended to provide or relied upon for tax, legal, or accounting advice. Please consult your own CPA, tax advisor, legal and accounting advisors.
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