Yes, you can claim the Recovery Rebate Credit if you did not receive the first or second round of stimulus checks, or if you received less than the full amount. The Recovery Rebate Credit is a tax credit against your 2020 income tax. Generally, this credit will either increase your refund or lower the amount of tax you owe irs.gov.
The Recovery Rebate Credit was authorized by the Coronavirus Aid, Relief, and Economic Security (CARES) Act and the COVID-related Tax Relief Act. It is calculated in the same way as the Economic Impact Payments, but it is claimed on your 2020 tax return forbes.com.
How to claim the Recovery Refund Credit
To claim the Recovery Rebate Credit, you must file a 2020 tax return, even if you are not required to file. You will need to know the amount of any Economic Impact Payments you received to calculate your Recovery Rebate Credit. The IRS sent Notice 1444 and Notice 1444-B to those who received Economic Impact Payments, and these notices should be used when preparing your tax return irs.gov.
Here is an example of how to claim the Recovery Rebate Credit on your 2020 tax return:
- Complete your tax return as you normally would.
- On Line 30 of Form 1040 or 1040-SR, enter the amount of the credit you are claiming.
- Attach any necessary documentation, such as Notice 1444 or Notice 1444-B.
Please note that the Recovery Rebate Credit is subject to the same eligibility and income limits as the Economic Impact Payments. If your income is too high, you may not be eligible for the credit. As always, for specific tax advice related to your personal situation, you should consult with a tax professional.
How to check if you have unclaimed stimulus payments
If you think you may have unclaimed stimulus payments, you can follow these steps to verify and claim your funds:
- Check your IRS account: The IRS has issued all first, second, and third Economic Impact Payments. You can securely access your IRS online account to view the total of these payments under the Tax Records page
- File your taxes: If you did not receive your full stimulus payments, you may be eligible to claim the 2020 or 2021 Recovery Rebate Credit by filing a tax return for that year. The IRS will send tax refunds that include any stimulus money still due once those returns are processed fool.com.
- Review your eligibility: Check if your circumstances qualify you for the Recovery Rebate Credit. For instance, if you had a baby in 2021 and claim the child as a dependent on your 2021 tax return, or if your income was reduced in 2021 compared to 2020, making you eligible for a larger payment.
- Start a payment trace: If you were expecting a check, didn’t get one, and the IRS determines it was not cashed, you can request a payment trace from the IRS. The trace generally takes six weeks. To start a payment trace, call the IRS toll-free at 800-919-9835 or send the IRS a completed Form 3911, Taxpayer Statement Regarding Refund.
- Claim the Recovery Rebate Credit: If you didn’t receive your full stimulus payments, you can claim the Recovery Rebate Credit on your 2020 or 2021 tax return. The IRS will not automatically calculate your rebate, so it’s up to you to claim it.