Recovery Rebate Credit: What It Is and How to Claim It

The IRS sent out the third round of stimulus payments (also known as economic impact payments, or EIPs) to eligible taxpayers from March through December of 2021.

If you believe you qualified for the third payment but didn't receive it, or if you think you received less than you were eligible for, there's some good news. You might be able to claim the funds via the recovery rebate credit when you file your 2021 tax return.

What is the recovery rebate credit?

The recovery rebate credit is a refundable tax credit that can be claimed on your 2021 return if you did not receive your third stimulus check or received the wrong amount.

Nerdy tip: An important thing to understand about the third stimulus payment is that it was technically an advance on the 2021 tax credit. Because the IRS did not yet have access to your 2021 tax information when the advance payments were sent out, the agency relied on the most recent information they had on file for you (likely your 2020 or 2019 return) to determine how much to send you based on that year's income, number of dependents and other qualifying information.

Who is eligible for the recovery rebate credit?

According to the IRS, most people who were eligible for the third round of payments (and any relevant plus-up payments) have already received their stimulus checks — but there are a few situations why someone might not have received it or received the wrong amount. For example:

You're claiming a new dependent in 2021 (e.g., a child).
Your marital status changed in 2021.
Your adjusted gross income from 2019 or 2020 (whichever one was used by the IRS to calculate the third stimulus amount) was high enough to make you ineligible for a stimulus check, but your 2021 AGI is now lower and within the qualifying threshold.
You did not have a Social Security number but received one by the 2021 tax deadline.

How do I claim the recovery rebate credit?

First, compare the amount you received for the third stimulus check against how much you were eligible for based on your 2021 tax information to determine the difference owed. (See a refresher on the qualifications in the FAQ section below.) If you don't remember the amount you received, you can check the following to see what the IRS has on file for you:

Your online IRS account (most accurate).
Request an IRS transcript.
Review Notice 1444-C (sent after initial dispersal of third payment) & Letter 6475 (sent in early 2022). These physical IRS notices were sent to the address the agency had on file for each taxpayer who received a stimulus payment, and they list the total amount dispersed.

If you think you're eligible for the recovery rebate credit after you crunch the numbers, you can claim it on line 30 of Form 1040 on your 2021 return. Page 59 of the instructions for Form 1040 also has a worksheet to help you calculate how much to claim, and many quality tax-prep software programs will help you to claim the credit if you're eligible.

A word of caution: Do make sure you carefully review the information you supply to the IRS. Math errors or miscalculations can delay your refund. And if you have any doubts about whether you're eligible for the recovery rebate credit or how much you should claim, you can work with a qualified tax professional or tax software to get a better idea. The IRS also has an extensive FAQ section that covers other situations and complexities surrounding the recovery rebate credit.

» MORE: How to get free tax prep or help this year

Stimulus check FAQs

How much was the third stimulus payment?

The U.S. Treasury disbursed up to $1,400 per adult and $1,400 per qualifying tax dependent. For example, a qualifying married couple with two kids was eligible for up to $5,600.

Who qualified for a stimulus check in 2021?

Not everyone. Here's the income criteria:

Single filers whose adjusted gross income does not exceed $75,000 are eligible for the full $1,400 stimulus payment. The amount begins to shrink after that and phases out completely at $80,000.
Married couples who file jointly and whose AGIs do not exceed $150,000 are eligible for a full $2,800 stimulus payment. The amount begins to shrink after that and phases out completely at $160,000.
Heads of household whose AGI does not exceed $112,500 are eligible for the full $1,400 stimulus payment. The amount begins to shrink after that and phases out completely at $120,000.

No matter your IRS filing status, the stimulus payment should have included up to $1,400 for every qualifying tax dependent you might have.

Who didn't qualify for a stimulus check in 2021?

People who don't have valid identification numbers. Everybody involved must provide a valid Social Security number (there are special rules for adopted children and members of the military).
Certain dependents. If you are a tax dependent on someone else’s tax return, the person who claims you as a tax dependent claims the stimulus check.
Nonresident aliens.
People who died before January 1, 2021.

When did stimulus checks arrive? And in what form?

The IRS distributed the third stimulus payments from March through December 2021 via direct deposit, check or a preloaded debit card.

Will stimulus checks be taxed as income on your 2021 return?

No. It's what's called a refundable tax credit. You will have to report having received it on your 2021 return, though.

Is the stimulus check a loan?

No.

Do I have to repay my stimulus money?

No, unless you obtained your stimulus check fraudulently.

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Recovery Rebate Credit: What It Is & How to Claim It in 2022