Recovery Rebate Credit Update | FAQs and IRS Letters
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- Опубліковано 30 лип 2024
- In this video, I cover the most common issues surrounding the recovery rebate credit and answer some of the most frequently asked questions about the recovery rebate credit.
Overview of the Credit: www.irs.gov/newsroom/recovery...
IRS FAQs: www.irs.gov/newsroom/recovery...
Recovery Rebate Worksheet (Page 59): www.irs.gov/pub/irs-pdf/i1040...
Recovery Rebate Worksheet How to: • Step by Step - How to ...
Where’s my Refund tool: www.irs.gov/refunds
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.
CARES Act and the Economic Impact Payment
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.
Who Qualifies for the Recovery Rebate Credit?
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).
#recoveryrebate #stimulus #taxes
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:
You received $1,200 plus $500 for each qualifying child you had in 2020, or
You're filing a joint return for 2020 and, together, you and your spouse received $2,400 plus $500 for each qualifying child you had in 2020.
You may be able to claim the Recovery Rebate Credit if:
You are eligible but were not issued an Economic Impact Payment, or
Your Economic Impact Payment was less than $1,200 ($2,400 if married filing a joint return) plus $500 for each qualifying child you had in 2020.
Taxpayers residing in American Samoa, Guam, Puerto Rico, the U.S. Virgin Islands, and the Northern Mariana Islands
In general, the tax authorities in these five U.S. territories will provide the Recovery Rebate Credit to eligible residents. Territory residents should direct questions about Economic Impact Payments received in 2020 or the 2020 Recovery Rebate Credit to the tax authorities in the territories where they reside.
As was the case with the advance payment of the credit called the Economic Impact Payment, your recovery rebate is up to $2,400 if you file a joint tax return or up to $1,200 for all other eligible individuals. Those with qualifying children will receive up to an additional $500 per qualifying child. Your recovery rebate amount will be phased out if your adjusted gross income for 2020 exceeds $150,000 if you are married filing a joint return, $112,500 if you are using the head of household filing status, or $75,000 if you are using any other filing status.
Please note that this video is for information purposes only and is not intended to provide or relied upon for tax, legal, or accounting advice. Please consult your own CPA, tax advisor, legal and accounting advisors.
Great detailed info! Thank you.
Thank you Steven for the comment, have a wonderful day!
Thank you Mr Lee
Thank you Steven for the comment, have a wonderful day!
My income tax came on the card. Well with this one come on the same card then I got my first income tax on or a paper check
Very informative and great but I do have a few questions.
1. My tax return says I put $600 at the recovery rebate credit although I didn't record that data, does that populate if you meet the requirements as mentioned in an earlier video?
2. I recall clicking yes to that I did receive my stimulus checks but I can't recall the dollar amount I put in there, could the $600 due be from an amount not being populated?
3. They're stating I have a balance due of $600 because of a miscalculation although I already paid in $2,100(give a little) and this would bump it up with being single and making $67K in 2020. Does that seem right?
I appreciate all the information and am hoping I am able to do something about this. Please let me know your thoughts.
Thanks!
Do you have video on how to amend 2020 return to claim the recovery rebate credit? I have not had any luck with turbo tax
Still waiting on my RRC, I didn't get a stimulus before I filed for it. They sent the third two days after I claimed, it's been well over a month and still no update on my first two stimulus. It says still being processed and no date. Looks like another year before I get anything else.
I was told that my taxes was adjusted and I will be getting a letter around the 24-26 of April. Would i get my deposit b4 or after the letter reaches me ?
I owed taxes for 2020. When I filed my return, the 2nd recovery rebate went towards what I owed. Will the 3rd rebate be used to pay tax?
The question I got a letter from the IRS I own 133 dollars cause recovery rebate will I still get a stimulus check and my tax refund
The IRS send me a letter in the mail and how much my refund what I was going to get but I didn't receive it yet it was due to errors so they had to make it right second question how long does it take cuz it past 21 days in the past 121 days
I got green card in 2019 and did not file my 2019 returns. I just filed my 2020 returns before _Oct 15th claiming the RRC. I did not filed my returns of 2019 as I did not had any income in 2019. Will I get my RRC smoothly or it would take some time ?
Hello, I filed my 2020 tax refund in Turbo Tax and claimed my 1st and 2nd stimulus ($1800) since i have not received any. I did received my refund without the recovery credit and received my 3rd stimulus in the mail yesterday (4/07/21). Why wasn't my 1st & 2nd stimulus included with my 2020 refund?
Same got my return and the 3rd stimuluscheck but not the first or second recovery credits
@@andygarcia7718 Me as well
I received a letter saying the IRS needs to verify my identity before they can give me my money. It said I could use the last 8 digits of my credit card on the IRS verification website as a way to prove my identity, but when I entered that information, the website refused it. Do you know why? I entered exactly what they asked for. Am I doing something wrong?
My letter says I'm receiving this notice due to one or more: then they list every single possible reason I could be receiving it. They dont specify.
I dont recall entering stimulus information on my taxes, or see a Recovery Rebate Credit option on my Turbotax filing for 2020. I printed my 2020 taxes, will you please tell me what I am looking for on my return to see if I have a wrong calculation or did In fact claim it and just don't remember? Turbotax community said that Turbo Tax did not show prompt for the credit if you did not qualify to claim it. Please help 😭
What about the 3rd stimulus? I saw my transcripts which shows that they adjusted my return. Once they approve my tax return will they send me the 3rd stimulus on there own?
What if I claim my recovery rebate on may 18th one day after the tax deadline do I still qualify ?
I had to mail mine? Because I couldn't do it electronically. Due to not having my identity theft id.. Been 7 weeks and 2 days waiting
What if those Childs above the 17 years. Do they file their own if they are US citizen but their both parents are non-residence for tax purpose.
I have filed my recovery rebate with free tax USA, haven't received any stimulus money, and I'm old first and second check
I've done all that and still didn't get any information from the irs about my taxes
Thank you Yolanda for the comment. Did you paper file or file electronically? The status of paper filed returns takes much longer as the IRS is extremely backed up.
I filed electronically and and just found out that I need to verify my identity
Is the stimulus taxable because there using it to take my tax return away and make me pay them?
I thought the irs said don't amend.... If you already filed they will fix it for you.... I filled Feb 13th .... Turbo tax and still haven't seen my refund... But I clearly filed early before the passed the $10,200 so what your saying is they aren't going to amend for us now? I am single head of household and I have 1 child under 16 and received all the stimulus
Great question Vicktovar1. The IRS recommends not to amend for the exemption related to unemployment benefit compensation. However, in regards to the Recovery Rebate, if you were eligible and did not input a credit amount, you will need to amend your return since the IRS will not calculate the recovery rebate for taxpayers.
@@locumcpa ok great thank you. I should be fine then seeing how I received all my recovery rebate (stimulus, earned income credit whatever they are calling it)
I claimed the recovery rebate credit. But still didn't receive it. Never got rounds1 and 2. But got my tax return
Is anyone else in this situation
Never got a stimulus did non filers rebate credit in February 16 still no letter nothing why taking so long
Don't do it. They'll send your return to the error dept taking an additional 10 weeks. Just file normally then once you receive your refund file an amendment. That way you still get your refund in a reasonable time.
Thank you Catrina for the comment, have a wonderful day!