The eligibility requirements are the same for the Recovery Rebate Credit as they were for the Economic Impact Payments except that the credit eligibility and the credit amount are based on your 2020 tax year information. The Economic Impact Payments were based on your 2018 or 2019 tax year information.
Individuals who didn’t qualify for the Economic Impact Payments (these are the first two "Stimulus Payments") or did not receive the full amount of the recovery rebates as Economic Impact Payments may be eligible for the Recovery Rebate Credit based on their 2020 tax situation. If you received the full amount for each Economic Impact Payment, you won’t need to include any information about either when you file your 2020 tax return. You received the full amount if:
- Your first Economic Impact Payment (Stimulus payment) was $1,200 ($2,400 if married filing jointly) plus $500 for each qualifying child; and
- Your second Economic Impact Payment (Stimuls paymnet) was $600 ($1,200 if married filing jointly) plus $600 for each qualifying child .
If you either didn’t receive any Economic Impact Payments or received less than these full amounts, you might be able to still claim the Recovery Rebate Credit based on your 2020 tax information. If so, you will need to file a 2020 tax return.
You will be eligible for the Recovery Rebate Credit if the following is true: you were a U.S. citizen or U.S. resident alien in 2020, were not a dependent of another taxpayer and have a Social Security number that is valid for employment, However, your credit amount will be reduced 5% in which AGI exceeds these threshholds:
- $150,000 if married and filing a joint return or filing as a qualifying widow or widower
- $112,500 if filing as head of household or
- $75,000 for eligible individuals filing as a single or as married filing separately.
You are not eligible for the Recovery Rebate Credit if any of the following applies:
- You may be claimed as a dependent on another taxpayer’s 2020 return (for example, a child or student who may be claimed on a parent’s return or a dependent parent who may be claimed on an adult child’s return).
- You do not have a Social Security number that is valid for employment issued before the due date of your 2020 tax return (including extensions). Some exceptions apply for those who file married filing jointly where only one spouse
- You are a nonresident alien.
- You are an estate or trust.
Also, individuals who died before January 1, 2020 are not eligible for the Recovery Rebate Credit.