The government provided several rounds of stimulus checks during the COVID-19 pandemic to help people financially.
Although most people have received their payments, some may still be missing payments or haven’t received the full amount they were supposed to. If you’re one of those people, you can still claim the money you’re owed through the Recovery Rebate Credit (RRC).
What is the Recovery Rebate Credit (RRC)?
The Recovery Rebate Credit is a way for people who missed a stimulus check or didn’t get the full amount to claim the money they are owed.
If you didn’t receive all your payments or missed some rounds of payments, you can claim this credit when filing your taxes for either 2020 or 2021. This only applies if you haven’t already received the full amount.
Who is Eligible to Claim the Recovery Rebate Credit?
Anyone who missed one or more rounds of stimulus checks or didn’t receive the full amount can use the Recovery Rebate Credit to get the money they’re owed.
To claim the credit, you’ll need to file a federal tax return for 2020 or 2021, even if you don’t usually file taxes. You can use the credit on the year you missed the payment.
- First and Second Stimulus Checks: These were advance payments of the 2020 Recovery Rebate Credit and should have been included in your 2020 tax return.
- Third Stimulus Check: This was a payment in advance of the 2021 Recovery Rebate Credit, which began in March 2021.
Steps to Claim the Recovery Rebate Credit
- Know the Amount You Already Received: To avoid mistakes, it’s important to know exactly how much you received in the form of Economic Impact Payments (stimulus checks). You can find this information on your IRS account or on Letter 6475 that the IRS sent in early 2022.
- Use Tax Software or the IRS Worksheet: To calculate the amount of the Recovery Rebate Credit, enter the total amounts you’ve already received into tax software or use the Recovery Rebate Credit Worksheet included with Form 1040.
- File Your Tax Return: If you missed any of the payments, you’ll need to file a tax return even if you don’t normally do so. This ensures that you receive the credit.
What If You Already Received the Full Amount?
If you already got the full amount of the third stimulus check, you don’t need to do anything when you file your 2021 taxes.
However, if you got less than the full amount or didn’t claim it earlier, you can still get the 2021 Recovery Rebate Credit based on your 2021 income. The credit can either reduce the amount of taxes you owe or increase your tax refund.
Required Documentation to Claim the Credit
- Letter 6475: This letter shows the exact amount of the third Economic Impact Payment you received. If you didn’t get this letter, you can check your IRS Online Account.
- 2020 Tax Return: If you missed any payments in 2020, you’ll need to file your 2020 tax return to claim that credit.
How to File Your 2021 Tax Return
The best way to claim the 2021 Recovery Rebate Credit is to file your tax return online. This method is easier, quicker, and reduces the chance of making mistakes. You can also choose to have your refund deposited directly into your bank account or onto a prepaid debit card.
1. What is the Recovery Rebate Credit?
The Recovery Rebate Credit is a way to claim any missing stimulus check payments from the government during the COVID-19 pandemic.
2. Who can claim the Recovery Rebate Credit?
Anyone who missed one or more stimulus checks or didn’t get the full amount is eligible to claim this credit on their tax return.
3. Do I need to file taxes to claim the credit?
Yes, you need to file a tax return to claim the Recovery Rebate Credit, even if you don’t usually file taxes.
4. How do I find out how much I received in stimulus checks?
You can find the amount of your payments in Letter 6475 or by checking your IRS Online Account.
5. Can I still claim the credit if I already received some of my stimulus payments?
Yes, if you didn’t get the full amount, you can claim the remaining balance as part of the Recovery Rebate Credit when you file your taxes.
