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2021 rebate credit

2021 Recovery Rebate Credit

One of the COVID related payments that many taxpayers saw in 2021 was the 3rd Economic Stimulus Payment.  Most taxpayers received $1400 per qualifying individual around March of 2021 (though “plus-up” payments happened after as well).  The IRS mailed Notice 1444-C after each payment made in 2021, and then Letter 6475 in early 2022 with the amount that was received for each individual.  You’ll want to make sure that you get this to your tax preparer, so they can ensure you received the full benefit you were eligible for!  This income is NOT subject to income tax, but the information will make sure that the tax preparer can assist you in getting funds you qualified for but did not receive.

If you were eligible and did not receive the 3rd stimulus payment, you may be eligible to claim the Recovery Rebate Credit on your tax return for 2021.  Do not include any information from the first or second economic stimulus payments (as both of those are reported on the 2020 tax return).  The Recovery Rebate Credit will first decrease any tax due on your 2021 tax return, with an excess added to your tax refund. 

If you are eligible for a refund, there may be a delay in your refund with the Recovery Rebate Credit on your 2021 tax return.  The IRS has cautioned that it could take up to 120 days if you have certain credits on your tax return (including the Recovery Rebate Credit, the Additional Child Tax Credit, and the Earned Income Tax Credit)- while the average for other refunds is typically 21 days.