Stimulus Payments and the Recovery Rebate Credit for TY 2020 Filing
- Mar 21, 2021
- 2 min read
Recovery Rebate Credit.
For year 2020 tax filing, the Recovery Rebate Credit is available to those that did not receive their stimulus/Economic Impact Payments (EIP). To claim the credit, you have to file your 2020 tax return and annotate the amounts (if any) of EIP received. There should have been two payments – one around April 2020 and a second payment around January 2021.
What if I did not qualify for EIP?
EIP eligibility was based on your tax year 2018 or your 2019 return. Individuals who did not qualify for EIP or did not receive the full amount of EIP may be eligible to receive payments based on their 2020 tax situation. Check with your tax advisor.
You are ineligible for the Recovery Rebate Credit if any of the following applies:
You may be claimed as a dependent on another taxpayer’s 2020 return (for example, a child or student who may be claimed on a parent’s return or a dependent parent who may be claimed on an adult child’s return).
You do not have a Social Security number that is valid for employment issued before the due date of your 2020 tax return (including extensions). Some exceptions apply for those who file married filing jointly where only one spouse must have a valid Social Security number to claim RRC.
You are a nonresident alien.
You are an estate or trust.
Service Members with Spouses who do not have Social Security Numbers.
Generally, the requirements to receive the Recovery Rebate Credit requires a valid Social Security number. The one caveat to this is that if one of the spouses is a member of the U.S. Armed Forces at any time during the 2020 taxable year, only one spouse needs to have a Social Security number to receive the full amount of the credit for both spouses.
Check out the below IRS links for more information:
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