The American Rescue Plan authorized three stimulus payments. The first two payments were reported on the 2020 tax return to reconcile the amounts received against the amounts the taxpayer should have received. The third stimulus payment is reported on the 2021 return to reconcile or claim any missed stimulus payments for the third round payment only.
Stimulus Round 3 (distributed in 2021)
You will be asked for your third stimulus payment amount when you file your 2021 tax return (taxes filed in 2022).
You aren’t eligible for the third payment if you:
- Are a nonresident alien
- Are claimed as a dependent by someone else
- Don’t have a valid Social Security number (SSN)
- Had an adjusted gross income (AGI) in 2020 (or 2019) that is more than:
- $150,000 for Married Filing Joint
- $112,500 for Head of Household
- $75,000 for any other filing status
$1,400 (or $2,800 if married filing jointly) plus $1,400 for each qualifying dependent is the maximum amount you can receive.
You may have received less than the maximum amount if your 2020 (or 2019) AGI was between:
- $75,000 to $80,000 as a single filer
- $112,500 to $120,000 as a head of household filer
- $150,000 to $160,000 as a joint file
Where do I claim the Recovery Rebate Credit?
To claim the Recovery Rebate Credit on your 2021 return, please use this menu path:
- Covid-19 Relief
- Recovery Rebate Credit
If the stimulus payment amount entered in the program is less than what the taxpayer should have received, the program will calculate an amount on the Recovery Rebate Credit worksheet. The IRS will review the return and trace the payment to determine if any additional stimulus is owed to the taxpayer.
If the taxpayer incorrectly indicated the amount of the stimulus payment, the Recovery Rebate Credit amount will calculate incorrectly and the IRS processing time may be increased. The taxpayer may also receive a notice from the IRS indicating the error and possible adjustments to your return, so that your tax return will match IRS records.
Please refer to your 1444-C letter for the amount received. If you no longer have the letter, refer to your IRS Account.
Use this IRS link for additional information about the third round of stimulus: https://www.irs.gov/coronavirus/third-economic-impact-payment