IRS Issues 2021 Recovery Rebate Credit Guidance
Greetings from the Seth & Alexander team!
On March 30th, the IRS issued guidance to anyone who received funds from the third round of Economic Impact Payments. To accurately claim stimulus payments, recipients must report the 2021 Recovery Rebate Credit (RRC) on their income tax return.
Most of the third-round payments were issued in the spring and early summer of 2021. The IRS continued to send plus-up payments through December if, after their 2020 tax return was processed last year, the taxpayer was eligible for additional amounts.
While the IRS is no longer issuing first, second, or third round payments, people who are missing a payment or received less, may be eligible to claim a Recovery Rebate Credit on their 2020 or 2021 tax return.
What if I already filed and my reported amount is incorrect?
Individuals who made a mistake calculating the Recovery Rebate Credit and claimed an amount on line 30 for the 2021 Recovery Rebate Credit should not file an amended return. The IRS will correct the amount of the 2021 Recovery Rebate Credit and send a notice identifying the changes made.
If you have any more questions regarding the RRC,
please contact the Seth & Alexander team.