If you have unanswered questions about the 2021 Recovery Rebate Credit, the IRS has released a full article its frequently asked questions with answers. You can read the full write-up here.
- Here are some highlights.
What is the difference between the 2021 Recovery Rebate Credit and 2020 Recovery Rebate Credit?
In the 2020 Recovery Rebate Credit, the first two rounds of Economic Impact Payments were advanced payments claimed on a 2020 tax return. In 2021, the third round of Economic Impact Payments included plus-up payments.
- What does plus-up payment mean?
Plus-up payments are additional stimulus checks for eligible individuals based on their 2019 tax returns. The IRS has sent plus-up payments for those with lesser income in 2020 compared to 2019.
- How would I know about the third Economic Impact Payment?
The IRS will be mailing you the details based on your current profile. A separate letter will be sent for those who qualified for plus-up payments.
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