What Is the RRC Tax Credit and How Do I Claim It?

The Recovery Rebate Credit (RRC) is a federal tax credit for individuals who did not receive the full amount of their 2020 or 2021 Economic Impact Payments, also known as stimulus checks. This credit allows eligible people to claim any missed or partial payments. To receive the credit, you must claim the difference by filing a federal income tax return for the specific year the payment was issued.

Determining Your Eligibility

To qualify for the Recovery Rebate Credit, you must be a U.S. citizen or U.S. resident alien for the tax year. You also cannot be claimed as a dependent on another person’s tax return and must have a valid Social Security number issued before the tax return’s due date.

For the 2020 credit, which covers the first two stimulus payments, eligibility was dependent on your Adjusted Gross Income (AGI). A valid Social Security number was required for the taxpayer and any qualifying children. A qualifying child for 2020 was defined as a child under age 17 at the end of the year.

The 2021 credit, for the third stimulus payment, had different AGI phase-out ranges. Single filers with an AGI between $75,000 and $80,000 had reduced payments, while head of household filers had a range of $112,500 to $120,000. For married couples filing jointly, the phase-out was between $150,000 and $160,000. A change for 2021 was the expanded definition of a dependent, allowing the credit to be claimed for all qualifying dependents, regardless of age.

A person’s situation may change between tax years, impacting eligibility. For instance, an individual claimed as a dependent on a 2020 tax return was not eligible for the stimulus payments that year. If that same individual cannot be claimed as a dependent for the 2021 tax year and meets all other requirements, they can file a 2021 tax return to claim the Recovery Rebate Credit. The credit is based on the circumstances reported on the 2020 or 2021 tax return.

Calculating the Credit Amount

To calculate your credit, you need the maximum payment amounts. The first EIP was up to $1,200 per adult and $500 per qualifying child. The second EIP was up to $600 for each eligible person, and the third EIP was up to $1,400 for each eligible person, including all dependents.

The calculation is the total amount you were eligible for minus the total amount you actually received. The result is your Recovery Rebate Credit amount.

For example, consider a single individual with no children who was eligible for the full $1,200 first EIP and $600 second EIP in 2020 but received nothing. This person would be entitled to claim an $1,800 Recovery Rebate Credit on their 2020 tax return. Similarly, if a married couple had a new child during 2021, they would be eligible for an additional $1,400 for that dependent, which they could claim on their 2021 tax return.

The IRS verifies the credit amount claimed on your return. If you incorrectly report the amount of stimulus payments you received, the IRS will recalculate your credit and delay your return. Using the specific worksheets provided in the tax form instructions ensures an accurate calculation based on your filing status, income, and dependents.

Information and Documents for Claiming the Credit

To confirm the amount of stimulus payments you received, refer to the notices issued by the IRS. These include Notice 1444 for the first payment, Notice 1444-B for the second, and Notice 1444-C or Letter 6475 for the third.

If you cannot find these notices, the payment amounts are available in your individual IRS Online Account. This portal provides access to your tax records, including the total stimulus payments issued to you. Using the exact figures from these sources helps prevent processing delays.

How to Claim the Recovery Rebate Credit

To claim the RRC, you must file a federal income tax return for the specific year of the missed payment. A 2020 return is for the first two payments, and a 2021 return is for the third. The credit is calculated using a worksheet in the Form 1040 instructions and then entered on the tax return itself.

If you filed a 2021 return but did not claim the credit, an amended return may not be needed. The IRS began automatically sending payments in late 2024 to many eligible taxpayers in this situation. If you believe you are eligible and did not receive a payment, you may need to file an amended return on Form 1040-X.

Be aware of the filing deadlines. The deadline to file a 2020 tax return to claim the Recovery Rebate Credit was May 17, 2024, and has now passed. For the 2021 tax year, the deadline to file and claim the credit is April 15, 2025. You can prepare these returns using tax software, through the IRS Free File program if available for prior-year returns, or by consulting a tax professional.