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  • Writer's pictureKathryn Bruns, CPA

2020 is the Tax Return for Reconciling the 2 Recovery Rebate EIPs

Taking a look at the 2020 Form 1040, I can see how the reconciliation of the two issued "Economic Impact Payments" will take place. Big Picture Summary:

It is the 2020 tax profile that will determine if you are ultimately entitled to receive these payments.

Step 1 is determining if you qualify for them, based on your 2020 profile

Step 2 is determining if you received them already, regardless of whether or not you qualify for them. Do you remember what payment(s) you received? It is critical that you get this right. You should have received a Notice 1444. Did you save them? If not, there is a tool you can use on the IRS website. Go to:

Step 3 is determining if you received more than you should have. Lucky you, it appears you don't have to give anything back !

Step 4 is determining if you should get more via your 2020 tax return. This will come in the form of a refundable credit !

Step 5 is just a nice FYI: These payments are TAX FREE (i.e. they will not be part of your taxable income)

Taxes are so fun...yes I am serious. Happy Tax Season !

Have your CPA locked down yet ?

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