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In a nutshell
In 2020 and 2021, the U.S. government issued stimulus checks to most taxpayers as a way of minimizing the negative impact from the economic shutdown during the COVID-19 pandemic. But nearly two years after the last stimulus checks were issued, not everyone who was eligible for the payments has received them.
- The Recovery Rebate Credit was established to give those who are entitled to stimulus checks, but did not receive them, an opportunity to claim them.
- The credit is available only to taxpayers who did not receive all three of the stimulus payments issued by the government.
How does the Recovery Rebate Credit work?
The government issued stimulus payments to most taxpayers in 2020 and 2021, according to the following schedule:
| Stimulus Number | Date Issued | Payment for Single taxpayers | Payment to Married Couples Filing Jointly | Payment for Dependents |
|---|---|---|---|---|
1 | March, 2020 | $1,200 | $2,400 | $500 |
2 | December, 2020 | $600 | $1,200 | $600 |
3 | March, 2021 | $1,400 | $2,800 | $1,400 |
If you met the income limits for either 2020 or 2021 (as described in the next section), you were eligible for either a full or partial stimulus payment. Most of the payments went out within several weeks of the initial issuance date, although some were delayed.
If you never received any of the stimulus payments, if you missed one or two, or if you received only a partial payment, you can recover these funds by filing for the Recovery Rebate Credit.
This Credit enables taxpayers who did not receive full or partial stimulus payments in 2020 to file for the credit with their 2020 income tax returns (tax returns filed in 2021). For a missing or partial payment of the stimulus payment in 2021, taxpayers could also file for the credit with their 2021 tax returns (tax returns filed in 2022).
Even if you missed filing for the credit in either of those years, you may still be eligible for the credit by filing amended returns for either year. (We will discuss the details of amending those returns later in this article.)
The credit will reduce your income tax liability for either 2020 or 2021 (or both). Since the returns for those years have likely already been filed, the IRS will issue a payment to you once your amended return(s) has been filed and processed.
Who is eligible for the recovery rebate credit?
To be eligible, taxpayers had to fall within income limits specific to each stimulus payment.
For the two payments issued in 2020, individual taxpayers who earned $75,000 or less in 2018 or 2019, based on adjusted gross income (AGI), qualified for the full payments. If you earned more than $75,000 in either year, the stimulus payments were gradually phased out, up to an income of $99,000, after which you were not eligible for a stimulus payment.
Married couples filing jointly were limited to an AGI of no more than $150,000 to get the full stimulus payments. The payments were gradually phased out up to an income of $198,000, after which couples were not eligible for a stimulus payment.
For the third stimulus payment, issued in 2021, AGI was based on your tax returns for 2019 or 2020. Income limits for the third stimulus payment were the same as they were for the first two payments in 2020: $75,000 (up to $99,000) for single taxpayers and $150,000 (up to $198,000) for married couples filing jointly.
In theory, you should have received all three stimulus payments by the middle of 2021. You can verify receipt of the payments by setting up an online account with the IRS. (The Get My Payment webpage set up by the IRS specifically to verify receipt of stimulus payments no longer exists.)
If you met the income limits for the stimulus payments for 2020 and 2021, and you didn’t receive one or more of the payments, or if you received only a partial payment, you may be eligible to file for the Recovery Rebate Credit.
To meet the requirements for the economic stimulus, you must also meet these qualifications::
- You were either a U.S. citizen or a resident alien in 2020 and/or 2021.
- You weren’t claimed as a dependent on another person’s income tax return.
- You have a valid Social Security number issued before the date your original tax returns were filed.
Note: Even if you did not file a tax return for either 2020 or 2021, you may still be eligible for the credit. But you will need to file tax returns for the tax year(s) you did not receive a stimulus payment.
How to calculate the recovery rebate credit
You should be eligible for a credit equal to the amount of any stimulus payment you are eligible for.. For example, if you are a single taxpayer in 2021 and did not receive the stimulus payment for that year, the credit will be $1,400.
If you received a partial payment, you must determine if your income exceeded the minimum limits for either year. The Rebate Recovery Credit worksheet can help you with that calculation, but here is an example calculation.
Let’s say you were a single taxpayer in 2020 and had an AGI of $85,000 for that year. Since you earned more than $75,000, your economic stimulus amount is reduced.The formula for the reduction is $5 for every $100 your income exceeds the minimum limit of $75,000.
That means your 2021 stimulus payment will be reduced by $500 ($10,000 times .05), from $1,400 to $900.
How to claim the recovery rebate credit
As a credit, the Recovery Rebate Credit can be claimed when you file your income tax return. However, since the stimulus payments were made in 2020 and 2021, the Recovery Rebate Credit must be claimed on your tax returns for those two years.
Since you were required to file your 2020 and 2021 income tax returns in 2021 and 2022, you’ll need to file an amended income tax return using IRS Form 1040X for either year. You can file an amended return for up to three years after the original due date. Your last chance to file an amended return for 2021 is 2024, while the last year for the 2022 return is 2025.
If you file your income tax returns for 2021 and 2022 using tax software, you should be able to prepare Form 1040X using that program. H&R Block offers live tax preparation if you don’t feel comfortable filing a 1040X through the software on your own. If you had your original tax returns filed by a paid preparer, you should go back to that preparer and have them file the amended return(s) for you.
| Tax software | Best for | Federal filing fee | State filing fee | Tax assistance available? |
|---|---|---|---|---|
Overall online tax software | $0 to $219 for DIY | $0 to $64 for DIY | Yes—Live Assisted | |
Students | $0 to $195 for DIY | $0 to $50 for DIY | Yes—Online Assist |
Frequently asked questions (FAQs)
How do I know if I will get the recovery rebate credit?
The only way to know for sure is by filing the Recovery Rebate Credit with an amended tax return for either 2020 or 2021. However, the first step is to find out if you received each payment and in the amount you are owed before filing for the credit. You can do that by opening an online account with the IRS to verify the payments.
Can I still claim a recovery rebate credit if I already filed my 2020 or 2021 taxes?
Yes, but you will need to file an amended tax return (IRS Form 1040X) for each year in which you did not receive the stimulus payment.
Is the recovery rebate credit the same as the stimulus?
The Recovery Rebate Credit and the stimulus are the same. The Recovery Rebate Credit is what the stimulus is referred to now.
Is there a stimulus check for 2023?
As of the date of publishing this article, there is no prospect of receiving a stimulus check for 2023 at the Federal level.
AP Buyline’s content is created independently of The Associated Press newsroom. Our evaluations and opinions are not influenced by our advertising relationships, but we might earn commissions from our partners’ links in this content. Learn more about our policies and terms here.