The Internal Revenue Service today updated frequently asked questions (FAQs) for the 2021 Recovery Rebate Credit.
These FAQs (FS-2022-09) updated:
2021 Recovery Rebate Credit —
Topic A: General Information: Q3
2021 Recovery Rebate Credit — Topic D: Claiming the 2021 Recovery Rebate
Credit: Q1, Q2,Q6
2021 Recovery Rebate Credit — Topic F: Receiving the Credit on a 2021 Tax
Return, Q8, Q9
2021 Recovery Rebate Credit — Topic G: Finding the Third Economic Impact
Payment Amount to Calculate the 2021 Recovery Rebate Credit: Q2
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.
Note: Third Economic Impact Payments are
different than the monthly advance Child Tax Credit payments that the IRS
disbursed from July through December 2021.
Most eligible people already
received their Economic Impact Payments and won’t include any information about
their payment when they file. However, people who are missing stimulus payments
should review the information on the Recovery Rebate Credit page to determine their eligibility
and whether they need to claim a Recovery Rebate Credit for tax year 2021.
To claim any remaining credit
for 2021, eligible people must file a 2021 tax return, even if they usually do
not file taxes. Also, people who did not receive all of their first and
second Economic Impact Payments in 2020 can receive those amounts only by
filing a 2020 tax return (or amending a previously filed return) and claiming
the 2020 Recovery Rebate Credit. They should review the Recovery Rebate
Credit page to determine their eligibility.
The 2021 Recovery Rebate Credit
can reduce any taxes owed or be included in the tax refund for the 2021 tax
year. Filers must ensure to not mix information from their 2020 and 2021 tax
years. In particular, filers should take care to NOT include any information
regarding the first and second Economic Impact Payments received in 2020, or
the 2020 Recovery Rebate Credit, on their 2021 return. They will need the total
of the third payment received to accurately calculate the 2021 Recovery Rebate
Credit when they file their 2021 federal tax return in 2022.
Individuals can now view this
information in their online account.
People can also locate this
information on Letter 1444-C, which they received from the IRS during 2021
after each payment, as well as Letter 6475, which the IRS will mail to
them through March 2022.
The FAQ’s cover most questions
relating to claiming the credit and are for use by taxpayers and tax
professionals and are being issued as expeditiously as possible.
