Everything You Need To Know About The Recovery Rebate Tax Credit
During 2020, the federal government sent eligible taxpayers two Economic Impact Payments , more commonly known as “stimulus checks.” The money was meant to help people struggling during the economic downturn caused by the COVID-19 pandemic. The maximum amount available for the first payment was $1,200 for single filers or $2,400 for those who are married filing jointly. In addition, there was a $500 payment for each qualifying child in a household. The maximum second payment was $600 for individuals or $1,200 for those filing jointly, plus an additional $600 for each qualifying child. However, not everyone received the full amounts of these payments, and that means you may be eligible for the Recovery Rebate Tax Credit . Here’s what you need to know: Why Didn’t I Get Economic Impact Payments? Many people didn’t receive their full Economic Impact Payments because the IRS used tax returns from 2018 and 2019 to determine eligibility for the payments. So, some people with higher...