Tax Day is may 17th this year!
The tax deadline for this year is Monday, May 17, 2021 and it’s approaching rapidly. 2020 was obviously a very different year, and you probably noticed that your taxes look different too. For instance, did you receive an Economic Impact Payment? If you did not, or you did not receive the full amount; you may be able to claim the Recovery Rebate Credit.
The Economic Impact Payment amounts were determined using your 2018 or 2019 tax return information, but for almost all of us, our 2020 income was not the same as what was listed on our taxes in 2018 or 2019. If your 2020 income was lower than in the previous years you could be eligible for the Recovery Rebate Credit.
The IRS says “Generally, if you were a U.S. citizen or U.S. resident alien in 2020, were not a dependent of another taxpayer and have a Social Security number that is valid for employment, you are eligible for the Recovery Rebate Credit. Your credit amount will be reduced if your adjusted gross income (AGI) is more than:
Your payment will be reduced by 5% of the amount by which your AGI exceeds the applicable threshold above.” You can check the www.irs.gov article Didn’t get Economic Impact Payments? Check eligibility for Recovery Rebate Credit and the related Recovery Rebate Credit Frequently Asked Questions article to see if you can benefit from this credit.
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Jason Hood is a practical lawyer with a broad range of experience.