If you are among those who have not received payments of stimulus checks, you do not need to worry because the IRS has made provisions to help you claim your money. All you have to do is complete the appropriate section of Form 1040 for you to receive your money.
Where to find the recovery rebate credit on IRS Form 1040
You will find the Recovery Rebate Credit on Line 30 of IRS Form 1040. See some practical steps below:Â
- Line 30 location: You will find Line 30 on page 2 of Form 1040.
- Purpose: It is where you report any stimulus payments you were eligible for but did not receive in full.
- Eligibility: This applies to people who missed the first or second stimulus checks or received less than they were entitled to.
If you have already received all your payments in full, you can skip this section. However, if you are missing funds, filling out this line is essential.
What is the recovery rebate credit?
The Recovery Rebate Credit is a way for eligible taxpayers to claim their stimulus payments as a tax credit. These payments were originally distributed as part of the government’s relief efforts during the COVID-19 pandemic. Here is what it covers:
- First stimulus check: Up to $1,200 per eligible adult and $500 per qualifying child under 17.
- Second stimulus check: Up to $600 per eligible adult and $600 per qualifying child under 17.
- Third stimulus check: A possible additional payment of $1,400 per individual is still being debated.
If you believe you did not receive the full amount for either the first or second round of checks, you can claim the difference as a Recovery Rebate Credit.
How to calculate your missing payments
Before you fill out Line 30, you need to calculate how much the IRS owes you. Here is how you can do your calculations:
- Check your records: Look at any of your IRS notices or bank statements to verify how much you received in stimulus payments.
- Use the IRS worksheet: Form 1040 includes a worksheet to help you calculate the exact amount you should claim as a credit.
- Include only what is missing: If you received partial payments, claim only the amount still owed to you.
For example, if you received $1,000 but were eligible for $1,800, you would claim $800 on Line 30.
What information to include on line 30
When you fill out Line 30, make sure the amount you report is accurate. Incorrect entries could delay your refund or result in processing issues. Here are some tips:
- Be precise: Double-check your calculations before entering the amount.
- Include dependents: If you had a child in 2020 who was not included in earlier payments, make sure to claim the additional amount for them.
- Use professional help if needed: If you are unsure about your eligibility or calculations, consult a tax professional.
Who qualifies for the recovery rebate credit?
It is not everyone that meets the qualifications of the IRS. To qualify, here are the requirements:
- Income limits: If you earn more than $75,000, you will not be qualified to receive this credit. For married couples, your income should not be more than $150,000.
- Filing status: You will have to file a 2020 tax return to claim this credit.
- Valid Social Security number: Both you and your dependents must have valid Social Security numbers to qualify.
