If you missed out on one or more Economic Impact Payments (EIP)—commonly known as stimulus payments—there’s still a way to claim what you’re owed through the Recovery Rebate Credit (RRC). The RRC was introduced as part of the CARES Act to help individuals who didn’t receive their full stimulus payments, and you can still claim the credit by filing your tax return.
How to Claim a Missing Stimulus Payment
If you didn’t receive one or more of the stimulus payments, or if you received less than you were eligible for, you can claim the Recovery Rebate Credit on your 2020 or 2021 federal tax return. Here’s a breakdown of what you need to do:
- First and Second Stimulus Payments: These payments were issued in 2020 and early 2021 as part of the first two rounds of stimulus relief. If you didn’t receive them, you need to claim the RRC on your 2020 tax return.
- Third Stimulus Payment: This payment was issued from March to December 2021. If you didn’t receive the full amount, you can claim the RRC on your 2021 tax return.
To claim your stimulus payments, you’ll need to file the correct tax return for the year you missed the payment. Tax preparation software can help you accurately calculate your Recovery Rebate Credit, ensuring that you don’t miss out on any funds.
How to Check Your Payment History
Before filing your tax return, it’s essential to know the exact amount of Economic Impact Payment you’ve already received. The IRS provided this information through:
- IRS Secure Online Accounts: Log in to your IRS account to view your EIP history.
- IRS Notices: You should have received Notices 1444, 1444-B, and 1444-C for each round of payments.
- Letter 6475: This letter details your third EIP payment, sent in 2021.
Eligibility Criteria for the Recovery Rebate Credit
To be eligible to claim the Recovery Rebate Credit, several criteria must be met:
- U.S. Citizen or Resident Alien: You must have been a U.S. citizen or resident alien in the relevant tax year.
- Not Claimed as a Dependent: You cannot be claimed as a dependent by another taxpayer.
- Valid Social Security Number: You must have a Social Security number valid for employment that was issued before the due date of your tax return (including extensions).
If these conditions were met, and you didn’t receive your full stimulus payment, you’re eligible to claim the RRC on your tax return. This credit will either increase your tax refund or reduce the amount of taxes owed.
Is the Recovery Rebate Credit Taxable?
No, the Recovery Rebate Credit is not considered taxable income, so claiming the credit will not affect your tax liability. Instead, it’s treated as a refundable tax credit, meaning it can directly increase your tax refund.
How to File for the Recovery Rebate Credit
To claim your missing stimulus payments, file your 2020 or 2021 tax return electronically or by mail. If you’re unsure of the amount of EIP you’ve received, make sure to use the IRS tools or consult a tax professional to help calculate your Recovery Rebate Credit accurately.
Don’t Miss Out on Unclaimed Stimulus Payments
If you didn’t receive your full Economic Impact Payment, it’s not too late to claim the funds through the Recovery Rebate Credit on your tax return. Make sure to gather all necessary documents, including IRS notices and letters, and ensure that your RRC is correctly calculated. By following these steps, you can still receive the financial support you’re entitled to.