Claiming Credit
What is the quickest way to get the Recovery Rebate Credit?
You must file a 2020 tax return to claim a Recovery Rebate Credit even if you are otherwise not required to file a tax return. The fastest and most accurate way for you is to file is electronically where the tax software will help you figure your Recovery Rebate Credit. Visit IRS.gov/filing for details about IRS Free File, Free File Fillable Forms or finding a trusted tax professional. The Recovery Rebate Credit Worksheet in the Form Form 1040 and Form 1040-SR instructions can also help determine if you are eligible for the credit.
Are individuals who died during 2020 eligible for the credit on their 2020 Tax return?
An individual who died in 2020 or in 2021 and did not receive the full amount of the Economic Impact Payment may be eligible for the Recovery Rebate Credit if the individual met the eligibility requirements. An individual who died prior to January 1, 2020, does not qualify for the Recovery Rebate Credit.
How will the credit affect my tax refund or the amount owed?
Generally, a credit increases the amount of your tax refund or decreases the amount of taxes owed. The amount you receive for the Recovery Rebate Credit will be included as part of your refund.
I made a mistake when calculating the 2020 Recovery Rebate Credit on my return. How can I fix it, so I receive the credit?
DO NOT file an amended tax return with the IRS. If you entered an amount on line 30 but made a mistake in calculating the amount, the IRS will calculate the correct amount of the Recovery Rebate Credit, make the correction to your tax return and continue processing your return. If a correction is needed, there may be a delay in processing your return and the IRS will send you a notice explaining any change made.
How do I figure out the Recovery Rebate Credit?
You must file a 2020 tax return to claim a Recovery Rebate Credit even if you are otherwise not required to file a tax return.
To figure the credit, you will need to know the amount of any Economic Impact Payments you received in order to claim any amount of the Recovery Rebate Credit you may be eligible for on your 2020 income tax return.
You may also refer to Notice 1444, Your Economic Impact Payment, which shows the amount of the first EIP and, the IRS is mailing Notice 1444-B which shows the amount of the second EIP.
Where can I get help completing my 2020 tax return?
There are various types of tax return preparers, including certified public accountants, enrolled agents, attorneys and others who can assist you in filing your return.
What does a SSN, valid for employment mean?
A valid SSN for the Recovery Rebate Credit is one that is valid for employment in the United States and is issued by the Social Security Administration (SSA) before the due date of your 2020 tax return (including an extension to October 15, 2021, if you request it).
If the individual was a U.S. citizen when they received the SSN, then it’s valid for employment.
If “Not Valid for Employment” is printed on the individual’s Social Security card and the individual’s immigration status has changed so that they’re now a U.S. citizen or permanent resident, ask the SSA for a new Social Security card.
If “Valid for Work Only with DHS Authorization” is printed on the individual's Social Security card, the individual has the required SSN only as long as the Department of Homeland Security authorization is valid.
How can I find my Economic Impact Payment amount, within my online account?
When you access your account, go to the Tax Records tab to find the Economic Impact Payment amounts you need for calculating the Recovery Rebate Credit. The first round of payments will show as “Economic Impact Payment” and second round of payments will show as “Additional Economic Impact Payment”. Both amounts should be used to calculate the Recovery Rebate Credit, such as entering them on the applicable lines in the Recovery Rebate Credit Worksheet found in the Form 1040 and Form 1040-SR instructions.
If you file a joint 2020 tax return with the same spouse, combine your amounts to calculate the Recovery Rebate Credit. Otherwise, enter only your portion of the payment when calculating the credit.
I received a letter saying that I did not calculate my 2020 Recovery Rebate Credit correctly. But, I completely disagree with that letter, how can I fix this issue?
If you disagree with the IRS calculation, please review the FAQs below prior to contacting the IRS. The FAQs below provide additional information to explain what errors may have occurred and what information you should have available when contacting the IRS.
Will I be required to complete the Recovery Rebate Credit worksheet?
There is no need to claim the Recovery Rebate Credit or complete the worksheet if you received the full amount of the recovery rebates as Economic Impact Payments.
The Recovery Rebate Credit Worksheet will help you determine if you are eligible for the RRC and how much when filing your 2020 tax return. Completing the worksheet is not required, but it may be helpful for you to use it and keep it for your records.
Do I need to include income on the return if I’m not usually required to file?
Yes, your return must be complete and correct. Even if you don’t have a tax return filing requirement, you may be eligible to receive additional credits based on your filing information by including the amount of your income and information about a spouse or any dependents.
My spouse has an SSN and I have an ITIN. Will we be eligible for the credit?
Under a new law enacted in December 2020, a married couple filing a joint return now may be eligible for a partial credit when only one spouse has a Social Security number valid for employment. If you and your spouse did not receive one or both Economic Impact Payments because one of you did not have a Social Security number valid for employment, you should complete the Recovery Rebate Credit Worksheet or use tax preparation software to determine if you may claim a Credit on your 2020 tax return for the spouse with the Social Security number valid for employment. If eligible for a Recovery Rebate Credit, you claim it on line 30 of your 2020 tax return.
If my spouse and I received our joint, Economic Impact Payments. Will my online account include my spouse's amount as well?
No, your account online will show only your portion of the payments. Your spouse will need to sign into their own account to retrieve their portion of the payments.
I received a notice saying that my 2020 Recovery Rebate Credit was changed because I was claimed as a dependent on another taxpayer's 2020 return. What should I do?
A. If you filed a 2020 return and checked the box stating you can be claimed as a dependent by another taxpayer, you do not qualify for the 2020 Recovery Rebate Credit. To be eligible for the 2020 Recovery Rebate Credit you cannot be a dependent of another person.
B. You do not need to take any action as the notice is informing you that the IRS already adjusted your return and disallowed the 2020 Recovery Rebate Credit. No further action is needed.
How do I complete the Recovery Rebate Credit, if my spouse died in 2020?
If you are filing your 2020 return with your deceased spouse as married filing jointly, you should enter $2,400 on line 5 of the worksheet and $1,200 on line 8 of the worksheet (if you answered “Yes” to question 2 or 3 in the worksheet) . Also include the amount of any Economic Impact Payments you both received on lines 16 and 19 of the worksheet.
Recovery rebate credits may be claimed for individuals who died in 2020 or 2021 when filing the decedent’s 2020 tax return. This includes someone who filed joint tax returns with a spouse who died in 2020 or 2021. Please refer to the Form 1040 and 1040-SR instructions for more information.
The IRS hasn’t finished processing my 2019 taxes. Can I file my 2020 tax return to claim a RRC if I didn’t get my full EIP Payments?
Yes. If your 2019 return has not completed processing, you can still file your 2020 tax return and claim the Recovery Rebate Credit, if you are eligible.
Avoid refund delays, file a complete and accurate tax return. File electronically and the tax software will help you figure your Recovery Rebate Credit.
Can I claim the credit if I was a bona fide resident of a U.S. territory in 2020?
No, you may not claim the credit from the IRS. Instead, tax authorities in U.S. territories will provide the Recovery Rebate Credit to eligible residents. Individuals who were territory residents in 2020 should direct questions about Economic Impact Payments received or the 2020 Recovery Rebate Credit to the tax authorities in the territories where they reside.
If I didn't receive the first or second EIP, because a 2018 or 2019 joint return was filed in my name without consent, can I still claim the 2020 RRC?
You may be able to claim the Recovery Rebate Credit if you can establish in writing that the return was signed under duress, your signature was forged, the return was filed without your consent, or you were not legally married at the end of the year on which the first or second payment was based. The first and second payments were generally issued based on information from the 2019 return, but were issued based on information from the 2018 return if a 2019 had not been filed or processed by the IRS when the payments were made.
To show that you could not resist your spouse’s demands and signed under duress, you can provide written documentation to support your claim that the joint election was invalid. You can submit a separate return for the prior year if you had a filing requirement or provide a statement signed and sworn under penalties of perjury that you didn’t need to file a tax return for the prior year or that the return was filed without your consent.
I received a notice that my RRC, was changed because of my qualifying child's last name. What should I do?
Compare the information you entered on your 2020 return for your child against the child’s Social Security card. If the name and number entered on the return does not match what is on the card, the credit will be denied for that child. If you identify an error in the tax return entry, contact the IRS at the number provided on your notice and have a copy of the Social Security card(s) available. If the information entered on the tax return matches the Social Security card or you have recently changed your child’s last name and did not update it with the Social Security Administration (SSA), please contact the SSA prior to contacting the IRS to confirm the information they have on file is accurate.
I did not file my 2020 tax return by deadline. Will I still be able to claim the credit when I file my return later in the year?
Yes, you can still claim the Recovery Rebate Credit when you file your tax return later this year.
To claim any refund, you generally must file your return within 3 years from the date the return was due (including extensions) to get that refund. This includes any amount of the 2020 Recovery Rebate Credit you want paid to you.
I don’t have to file taxes, but I think I qualify for more than I received in my EIPs, how do I file for the RRC?
If you’re eligible – and either didn’t receive Economic Impact Payments or if you think you qualify for more than you received – you’ll need to file a 2020 tax return and claim the Recovery Rebate Credit even if you otherwise are not required to file a tax return.
What factors may affect eligibility for claiming the RRC if I wasn’t eligible for EIP Payments?
Some factors that may affect eligibility for the RRC are Income Change, Qualifying Child, No longer a dependent or Social security number validity
If I didn't qualify for the RRC, because of the AGI, I reported on my 2020 tax return, will I get a payment for the credit if my AGI reduction for the unemployment compensation exclusion makes me eligible for the credit and a refund?
Yes. We’ll determine if reducing your AGI by the unemployment exclusion now makes you eligible for the credit or for more of the credit if you received less than the full amount.
I received a notice saying my 2020 Recovery Rebate Credit was changed because my adjusted gross income was too high. What do I need to do?
The 2020 Recovery Rebate Credit has the same adjusted gross income limitations as the first and second Economic Impact Payments. Your 2020 Recovery Rebate Credit amount will be reduced if the adjusted gross income amount on line 11 of your 2020 Form 1040 or Form 1040-SR is above:
Your payment will be reduced by 5% of the amount by which your adjusted gross income exceeds the applicable threshold above. You do not need to take any action; the IRS has already adjusted your credit. The notice was to inform you of the change. No further action or calls are necessary.
What if my spouse and I received a joint Economic Impact Payment and we are not filing a joint 2020 tax return?
When joint Economic Impact Payments are issued to two spouses, each spouse must claim half the payment when calculating the Recovery Rebate Credit. Each spouse must enter half the payment on the Recovery Rebate Credit Worksheet. You can view the amounts of your first and second Economic Impact Payments through your online account. Visit Secure Access: How to Register for Certain Online Self-Help Tools for more information about how to create an account or how to reset your username or password. You can also refer to your Notice 1444, Your Economic Impact Payment, which shows the amount of the first EIP and, the IRS is mailing Notice 1444-B which shows the amount of the second EIP.