Jan 8th, 2021
I am sure many of you have benefited from the economic impact payments (also called stimulus payments). In past episodes, I discussed different people who should have received those payments in 2020. Now, we are looking at another round of the economic impact payments in 2021.
For those who should have received payments but did not, there is a method for reconciling the payments on the 2020 tax return. It is called the recovery rebate credit.
I talk through some of the procedure for the recovery rebate credit and how it will affect people with their economic impact payments. For example, the credit is treated as a non-refundable credit and then converts to a refundable credit. You should have a copy of Notice 1444 when preparing your taxes and considering the recovery rebate credit. These tips and more are in this episode.