The IRS sent out the third round of stimulus payments (also known as economic impact payments, or EIPs) to eligible taxpayers from March through December of 2021. Show
If you believe you qualified for the third payment but didn't receive it, or if you think you received less than you were eligible for, there's some good news. You might be able to claim the funds via the recovery rebate credit when you file your 2021 tax return. What is the recovery rebate credit?The recovery rebate credit is a refundable tax credit that can be claimed on your 2021 return if you did not receive your third stimulus check or received the wrong amount. 🤓Nerdy Tip An important thing to understand about the third stimulus payment is that it was technically an advance on the 2021 tax credit. Because the IRS did not yet have access to your 2021 tax information when the advance payments were sent out, the agency relied on the most recent information they had on file for you (likely your 2020 or 2019 return) to determine how much to send you based on that year's income, number of dependents and other qualifying information. Who is eligible for the recovery rebate credit?According to the IRS, most people who were eligible for the third round of payments (and any relevant plus-up payments) have already received their stimulus checks — but there are a few situations why someone might not have received it or received the wrong amount. For example:
How do I claim the recovery rebate credit?First, compare the amount you received for the third stimulus check against how much you were eligible for based on your 2021 tax information to determine the difference owed. (See a refresher on the qualifications in the FAQ section below.) If you don't remember the amount you received, you can check the following to see what the IRS has on file for you:
If you think you're eligible for the recovery rebate credit after you crunch the numbers, you can claim it on line 30 of Form 1040 on your 2021 return. Page 59 of the instructions for Form 1040 also has a worksheet to help you calculate how much to claim, and many quality tax-prep software programs will help you to claim the credit if you're eligible. A word of caution: Do make sure you carefully review the information you supply to the IRS. Math errors or miscalculations can delay your refund. And if you have any doubts about whether you're eligible for the recovery rebate credit or how much you should claim, you can work with a qualified tax professional or tax software to get a better idea. The IRS also has an extensive FAQ section that covers other situations and complexities surrounding the recovery rebate credit. Stimulus check FAQsHow much was the third stimulus payment? The U.S. Treasury disbursed up to $1,400 per adult and $1,400 per qualifying tax dependent. For example, a qualifying married couple with two kids was eligible for up to $5,600. Who qualified for a stimulus check in 2021? Not everyone. Here's the income criteria:
No matter your IRS filing status, the stimulus payment should have included up to $1,400 for every qualifying tax dependent you might have. Who didn't qualify for a stimulus check in 2021?
When did stimulus checks arrive? And in what form? The IRS distributed the third stimulus payments from March through December 2021 via direct deposit, check or a preloaded debit card. Will stimulus checks be taxed as income on your 2021 return? No. It's what's called a refundable tax credit. You will have to report having received it on your 2021 return, though. Is the stimulus check a loan? Do I have to repay my stimulus money? No, unless you obtained your stimulus check fraudulently.
What if I accidentally claimed the recovery rebate credit 2022?If you claimed the recovery rebate credit on your tax return, the IRS said it will calculate the correct amount of the credit for 2021 if you made a mistake. The process is as follows: The IRS will make a correction to your tax return, and continue processing your return. But you may face delays.
Can I amend my tax return for stimulus check?No, the IRS will not reject your tax return if you made an error in calculating your 2020 Recovery Rebate Credit when you filed your 2020 tax return. DO NOT file an amended tax return with the IRS to correct an error you made in calculating your 2020 Recovery Rebate Credit.
Will the IRS correct my return?The IRS may correct mathematical, clerical errors on a return and may accept returns without certain required forms or schedules. In these instances, there's no need to amend your return. However, do file an amended return if there's a change in your filing status, income, deductions, credits or tax liability.
What happens if the IRS finds an error on my return?If there's a mistake and the IRS sent you a notice or returned the form. If information is missing, the IRS will either return the form or send you a notice asking for specific information it needs to finish processing your tax return.
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