IRS Updates FAQs for 2021 and 2020 Recovery Rebate Credit
The IRS recently updated its frequently asked questions and answers (FAQs) for both the 2021 and 2020 Recovery Rebate Credit.
The 2021 Recovery Rebate Credit FAQs updated Questions 1, 5, 8 and 9 in Topic F: Receiving the Credit on a 2021 Tax Return. The 2020 Recovery Rebate Credit FAQs modified Questions 1, 4, 5 and 8 and added new Questions 9 and 10 in Topic E, Receiving the Credit on a 2020 tax return.
Individuals who did not qualify for, or did not receive, the full amount of the third Economic Impact Payment may be eligible to claim the 2021 Recovery Rebate Credit based on their 2021 tax year information. Individuals may have received their third Economic Impact Payment through initial and "plus-up" payments in 2021. To claim any remaining credit for 2021, eligible people must file a 2021 tax return, even if they usually do not file taxes.
Additionally, people who did not receive all of their first and second Economic Impact Payments in 2020 can receive those amounts by filing a 2020 tax return (or amending a previously filed return) and claiming the 2020 Recovery Rebate Credit.