The official tax record of your 2021 economic impact payment is IRS Letter 6475. (EIP). Your personal information, such as your name and address and the total EIP amount granted by the IRS, will be displayed on Letter 6475.
The EIP is not taxable income; however, those who missed a stimulus payment or got less than the entire amount may be eligible to claim a recovery rebate credit (RRC) on their federal tax return in 2020 or 2021. This tax credit may be applied to your tax payment or included in your tax refund.
According to the IRS, individuals and families received more than 175 million EIPs and plus-up payments totaling more than $400 billion. Plus-up payments were made to persons who were initially eligible for an EIP based on their 2019 tax return information but were later eligible for a more significant amount based on their 2020 tax return data. The IRS no longer sends payments, so any balance owed must be claimed through the recovery rebate credit on your tax return.
You can also examine your entire EIP amount by logging into your IRS Online Account. Each spouse must log in to their own account — or study their own Letter 6475 — to determine their share of the total payment for married couples filing jointly.
When calculating the recovery rebate credit amount on line 30, you have two options: use the amount on Letter 6475 or your IRS Online Account, or use the amount of EIP you believe you got to compute the RRC amount. However, your tax return will be delayed if your calculation does not match IRS records. The IRS will fix the amount of the 2021 RRC and provide a notification with the modifications made, so an amended return isn’t necessary in this case.
Read More:-
- Update on the Stimulus: College Grads and New Parents Can Claim $1,400 on Their Tax Returns in 2021
- Who Will Be Eligible for the Proposed $100 Monthly Gas Stimulus Payment?
- State Considers Inflation Counter in 2022: Checking for Stimulus Checks
Suppose you have never received a payment yet. Suppose your IRS account displays a payment amount of more than $0 (or you received Notice 1444-C or Letter 6475 indicating that a settlement was issued). In that case, the IRS recommends contacting them to request a payment trace as soon as possible.
