Information About Economic Impact Payments

The IRS has announced that all third-round economic impact payments (EIP’s) have been disbursed and reminded parents of children that were born in 2021 and families that added dependents last year to claim the 2021 recovery rebate credit.

In a recent news release, the IRS also offered instructions for how people should use their 2021 income tax return to claim any remaining stimulus payments to which they’re entitled to under the recovery rebate credit.

While noting that most eligible people have already received the full amount of stimulus and won’t need to claim the credit on their tax return, the agency stated that families and individuals who didn’t get the full amount of the third-round of EIP should make sure to claim the credit. In addition to new parents and newly expanded families, those possibly eligible to receive more money by claiming the recovery rebate credit include single and married filers whose income fell below the designated thresholds from 2020 to 2021, the IRS release said.

Those who did not receive first- and second-round EIP’s may be eligible to claim the recovery rebate credit from 2020 but would need either to file a tax return for that year or amend a 2020 return that has already been processed.

The IRS has issued Revenue Procedure 2022-12, with simplified filing procedures for people claiming the 2021 recovery rebate credit, earned income credit, or child tax credit who are not otherwise required to submit an income tax return for last year. Earlier in January, the agency updated its frequently asked questions (FAQ’s) page about the 2020 recovery rebate credit.