The Recovery Rebate Credit is a tax credit available to taxpayers who received advance payments of the 2020 recovery rebate (also known as the stimulus payment) but did not receive the full amount they were entitled to. The recovery rebate credit is intended to help taxpayers who did not receive the full amount of the recovery rebate due to changes in their income or other circumstances.
To claim the recovery rebate credit, you will need to file a tax return and complete Form 1040 or Form 1040-SR, as well as Schedule 3 (Form 1040 or 1040-SR). You will need to provide information about the advance payment you received and any changes in your income or circumstances that may have affected the amount of the recovery rebate you were entitled to receive.
The amount of the recovery rebate credit you are entitled to receive will depend on your income, the number of qualifying children you have, and your filing status. The credit may be paid out in the form of a tax refund or may be applied to reduce the amount of tax you owe.
If you think you may be eligible for the recovery rebate credit, it’s a good idea to speak with a tax professional or use tax preparation software to determine your eligibility and calculate the amount of the credit you may be able to claim.