Economic Impact Payment (“Stimulus Payment”) FAQ
Have questions about how to handle your stimulus payments on your federal tax return? Missing any of your payments? We have answers!
The third Economic Impact Payment (“Stimulus Payment”) is not includible in your gross income on your 2021 Federal income tax return.
This means when you file your tax return:
- You will not owe any tax on the Stimulus Payment you received.
- It will not reduce your refund.
Note: The third Stimulus Payment will also not affect your income when determining your eligibility for federal government assistance or benefit programs.
If the information reported on your 2021 Federal income tax return would cause you to have qualified for a lesser third Stimulus Payment (compared to your 2020 or 2019 tax information which was used to calculate the payment you received), you will not be required to pay any of it back.
You are not required to report the third Stimulus Payment on your 2021 Federal income tax return, but you may need to provide information to your tax preparer showing whether you received the third Stimulus Payment. Remember to keep any notices you receive from the IRS regarding the third Stimulus Payment and any additional payments with your 2021 tax records. The IRS mails these notices to each recipient’s address on file after the payment is made. This is generally the address on your most recent tax return or as updated through the United States Postal Service (USPS).
Missing third Stimulus Payments may only be claimed on a 2021 tax return.
People who are missing the third stimulus payment or got less than the full amount may be eligible to claim a Recovery Rebate Credit on their 2021 federal tax return. Enter the stimulus payment amount in your tax preparation software or in the Form 1040 Recovery Rebate Credit Worksheet to calculate your credit.
Learn more: Recovery Rebate Credit | Internal Revenue Service (irs.gov)
All first and second economic impact payments (“stimulus payments’) have been sent out by the IRS. Missing 1st and 2nd payments must be claimed on your 2020 tax return. You can’t claim them on your 2021 tax return.
If you didn’t get a first and second Stimulus Payment or got less than the full amounts, you may be eligible to claim the Recovery Rebate Credit by filing a 2020 tax return if you have not filed yet or by amending your 2020 tax return if it’s already been processed.
For 2021:
People who are missing the third stimulus payment or got less than the full amount may be eligible to claim a Recovery Rebate Credit on their 2021 federal tax return. Enter the stimulus payment amount in your tax preparation software or in the Form 1040 Recovery Rebate Credit Worksheet to calculate your credit.
For 2020:
- If you did not file a 2020 tax return or successfully use the Child Tax Credit Non-Filer Sign-up Tool: File a 2020 tax return to claim the 2020 Recovery Rebate Credit even if you don’t usually file a tax return.
- If you did file a 2020 tax return or successfully used the Child Tax Credit Non-Filer Sign-up Tool and did not claim a Recovery Rebate Credit: File an amended return to claim the credit.
- If you filed a 2020 tax return or successfully used the Child Tax Credit Non-Filer Sign-up Tool and you received a letter from the IRS about your 2020 Recovery Rebate Credit:
- If you agree with the changes the IRS made, you don’t need to reply. Keep the letter with your tax records.
- If you disagree, call the IRS at the toll-free number listed on the top right corner of your notice. If you received a letter from the IRS about other issues relating to your tax return, you should follow the instructions in the letter.
- If your 2020 return or information has not yet been processed do not file a second tax return. Some returns need special handling to correct errors or credit amounts, which can delay processing by up to 120 days. The IRS is having to correct significantly more errors on 2020 tax returns than in previous years. If they correct the credit claimed on your return, they will send you an explanation.
Learn more: Recovery Rebate Credit | Internal Revenue Service (irs.gov)
Your Online Account: Securely access your individual tax information with an IRS online account to view your first, second and third Stimulus Payment amounts under the related tax year tab.
IRS Letters: The IRS mailed these letters to the address they have on file.
- Notice 1444: Shows the first Stimulus Payment advanced for tax year 2020
- Notice 1444-B: Shows the second Stimulus Payment advanced for tax year 2020
- Notice 1444-C: Shows the third Stimulus Payment advanced for tax year 2021