Recovery Rebate Credit on Line 30 of Form 1040

In March 2021, Congress authorized a third round of stimulus payments of up

to $1,400 per household member—including adults, children, adult dependents

like college students and elderly relatives. These payments aren’t taxable, and

overpayments don’t need to be returned to the IRS in most cases.

Some of these were “top-up” payments for people who received an amount based on their 2019 income and then qualified for more based on 2020 returns they filed in 2021. That

could be, for example, because of a job loss or the birth of a child in 2020.

Because the stimulus payments were structured as an advance payment of a

tax credit for 2021, taxpayers can also qualify based on their 2021 income and

family situation if they haven’t received payments or are eligible for more. These

amounts are claimed as a Recovery Rebate Credit on line 30 of Form 1040; the

instructions have a worksheet to determine the correct amount.