Recovery Rebate Credit Guide in 2022

Thu. 10 Feb. 20229263

After New Year, the United States enters the annual "tax season". Everyone from the president to common people have to file their taxes or it is illegal. The annual tax filing deadline is mid-April. On the night of each closing day, large post offices across the United States extend their opening hours until midnight, and huge crowds line up to catch the "last bus". 

Many tax-paying families and individuals are looking forward to the annual tax season with the hope of getting a tax refund. In addition, during the coronavirus crisis, what most Americans concern mainly is the stimulus payments. However, if you don't get a third stimulus check or the full amount, you may be able to claim the recovery rebate credit on your 2021 tax return to make up the difference.


1. What is the Recovery Rebate Credit?

2. Who Might Qualify for the Recovery Rebate Credit?

3. How to Claim the Recovery Rebate Credit?


What is the Recovery Rebate Credit?

Recovery rebate credit

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The recovery rebate credit is a certain one-time benefit that most people received in the form of stimulus payments to combat the crisis of COVID-19 pandemic. But those who did not get the full amount of stimulus money, and those whose situation has changed, may now qualify. In addition, any eligible individual can claim the missing amount on the following tax return by recovery rebate credit.


Who Might Qualify for the Recovery Rebate Credit?

Qualify for recovery rebate credit

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The eligibility for the recovery rebate credit is based on information from your 2021 return, so if you have already received the full amount of stimulus money, you are no longer qualified for it.


You may be eligible for the recovery rebate credit under the following circumstances:


  • Parents of a child born in 2021-or parents and guardians who added a new child to their family in 2021-may be eligible to receive up to $1,400 for the child.

  • Families who added a dependent - such as a parent, niece, nephew or grandchild - on their 2021 tax return (and who was not listed as a dependent on their 2020 tax return).

  • Unmarried filers who had income above $80,000 in 2020 but below that amount in 2021.

  • Married couples who filed a joint return and had income over $160,000 in 2020 but less than this amount in 2021.

  • Heads of household who filed a return and had income above $120,000 in 2020 but below this amount in 2021.

  • Unmarried filers who had income between $75,000 and $80,000 in 2020 but had lower income in 2021.

  • Married couples who filed a joint return and had income between $150,000 and $160,000 in 2020 but had lower income in 2021.

  • Heads of household filing jointly who had income between $112,500 and $120,000 in 2020 but had lower income in 2021.


How to Claim the Recovery Rebate Credit?

Claim recovery rebate credit

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First, please enter the amount of the stimulus payments received for both rounds. You can find the amounts you received on your Notice 1444 mailed by the IRS (A Notice 1444 is for the first stimulus payment and Notice 1444-B for the second round). If you received less than the full stimulus payment for one or both rounds, the worksheet asks you questions about your income. However, if you received a higher payment and now qualify for less or no stimulus cash at all, you don’t have to repay the credit.


Next, calculate your recovery rebate credit. The calculation of the recovery rebate credit is generally the same as the calculation of third-round stimulus checks. What’s more, the third stimulus checks were generally based on information from either your 2019 or 2020 tax return. However, the amount of your recovery rebate credit is based entirely on information found on your 2021 tax return. Last but not least, remember to file the recovery rebate worksheet along with your 2021 federal tax return. 


Have you already received your recovery rebate credit?  If not, we hope all the information above could help you a lot. And for easy tax claims with the preparations of the paperwork, you can free download tax forms templates and edit your forms with a well-received form filler now!


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