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.
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.
You do not need to complete any information about the Recovery Rebate Credit on your 2020 Form 1040 or 1040-SR if your Economic Impact Payment in 2020 was $1,200 ($2,400 if married filing jointly for 2020) plus $500 for each qualifying child you had in 2020. You received all your recovery rebate in 2020.
Under the CARES Act, millions of Americans have received Economic Impact Payments. The IRS will continue to make these payments through December 31, 2020.
For more information on Economic Impact Payments, see questions and answers in the Economic Impact Payment Information Center.
In general, the Economic Impact Payment is not taxable to you for federal income tax purposes, but it will reduce any Recovery Rebate Credit that you can claim on your 2020 Form 1040 or 1040-SR.
You can check the status of your payment by using the Get My Payment application. Visit our Get My Payment Frequently Asked Questions page for more information about the status of your payment, including an explanation of the status you receive from the application.
Refer to your Notice 1444 for the payment amount you were issued, before any offsets, in 2020. You'll need to this information to determine the amount to include on the worksheet that will be included in the 2020 Instructions for Form 1040 and 1040-SR and when completing the Form 1040 or Form 1040-SR.
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: