You may be wondering how will COVID-19 relief payments affect my tax return? Taxpayers who did not receive their full third stimulus check may be able to claim this money on their tax return. Typically you must report all income when filing taxes, however the third stimulus check is a little different.
Who Is Eligible for the Recovery Rebate Credit?
Not everyone received a stimulus check from the third round. Certain demographics who should pay particular attention to the recovery rebate credit are:
- if you didn’t receive a full (or any) third-round stimulus check,
- you didn’t file a 2019 or 2020 tax return,
- your income dropped in 2021,
- you had a baby in 2021,
- you got married last year,
- you’re a recent college graduate,
- or you otherwise had a significant change of circumstances in 2021
The recovery rebate credit can be used to lower your tax bill and possibly result in a refund. Since the third stimulus check is not taxable, if your check was higher than your eligible recovery rebate amount you will not have to pay for the difference on your tax return. Overall, be sure to remember the general deadline for filing taxes this year is April 18th.
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