The Taxpayer Advocate Service has published an article titled “TAS Tax Tips: Recovery Rebate Credit and Economic Impact Payment information you might need to know,” which tells taxpayers how to identify which Economic Impact Payments (EIPs) and Recovery Rebate Credits (RRCs) they are eligible for. The article begins as follows:
Economic Impact Payments (EIPs), also known as stimulus payments, and the related Recovery Rebate Credits (RRCs) are essentially divided into two tax years: 2020 and 2021. The information outlined below is to help you understand which EIPs relate to which RRC and how to find more information about each.
Two EIPs (EIP1 and EIP2) were issued to eligible taxpayers during 2020 and early 2021. These EIPs were advanced payments of the Recovery Rebate Credit (RRC), a refundable credit, claimed on the 2020 Individual Tax Return.
To view the full article, click here: “TAS Tax Tips: Recovery Rebate Credit and Economic Impact Payment information you might need to know”
Posted by Elise Kim, Managing Associate Editor, Wealth Strategies Journal.