FAQs

  • The IRS understands the importance of processing tax forms and refunds in a timely manner. As the return is processed, whether it was filed electronically or on paper, it may be delayed due to concerns such as the Recovery Rebate Credit, missing information, or suspected identity theft or fraud. The resolution of these issues could take 90 to 120 days depending on how quickly and accurately you respond, and the ability of the IRS working under social distancing requirements to complete the processing of your return.

  • As of January 8, 2022, IRS are processing these returns in the order received and working hard to get through the inventory. The current timeframe can be more than 20 weeks instead of up to 16. Taxpayers should continue to check Where's My Amended Return? for the most up to date processing status available.

  • The IRS continues to review tax year 2020 returns and process corrections for taxpayers who paid taxes on unemployment compensation to exclude the compensation from income, if eligible. The IRS is now concentrating on more complex returns. Some taxpayers will receive refunds while others will have the overpayment applied to taxes owed or other debts. The IRS will mail a letter to affected taxpayers to inform them of the corrections usually within 30 days from when the corrections were completed. See the 2020 Unemployment Compensation Exclusion FAQs for more information, including details on filing an amended return.

  • The eligibility requirements for the 2021 Recovery Rebate Credit are the same as they were for the third Economic Impact Payments, except that the credit eligibility and amount are based on your 2021 tax year information. Third Economic Impact Payments were based on your 2019 or 2020 tax year information.

    If you didn’t qualify for third Economic Impact Payment or did not receive the full amount, may be eligible to claim the 2021 Recovery Rebate Credit based on your 2021 tax information. If you received the full amount for the third Economic Impact Payment, you won’t need to include any information about it when you file your 2021 tax return.

    You received the full amount of your third Economic Impact Payment if the total amount was:

    1) $1,400 for an eligible individual who has a valid Social Security number (SSN) ($2,800 for married couples filing a joint return if both spouses have a valid SSN or if one spouse has a valid SSN and one spouse was an active member of the U.S. Armed Forces at any time during the taxable year) plus

    2) $1,400 for each qualifying dependent who has a valid SSN or Adoption Taxpayer Identification Number (ATIN) issued by the IRS

    Generally, if you were a U.S. citizen or U.S. resident alien in 2021, you were not a dependent of another taxpayer, and you either have a valid SSN or claim a dependent who has a valid SSN or ATIN, you are eligible to claim the 2021 Recovery Rebate Credit. You may also be eligible if you file a joint return with your spouse, you or your spouse were a U.S. citizen or U.S. resident alien in 2021, and either you, your spouse, or both of you, have a valid SSN or you claim a dependent who has a valid SSN or ATIN.

    Your credit amount will be reduced by the amount of your third Economic Impact Payment. It is then reduced if the adjusted gross income (AGI) amount on line 11 of your 2021 Form 1040 or Form 1040-SR is more than:

    1) $150,000 if married and filing a joint return or filing as a qualifying widow or widower

    2) $112,500 if filing as head of household or

    3) $75,000 for all others.

    No credit is allowed when AGI is at least the following amount:

    1) $160,000 if married and filing a joint return or if filing as a qualifying widow or widower

    2) $120,000 if filing as head of household or

    3) 80,000 for all others.

    ***For example, a single person with no dependents and an AGI of $77,500 will have a maximum credit of $700 (half the full amount). Married taxpayers who file a joint return that claims two qualifying dependents and an AGI of $155,000 will have a maximum credit $2,800 (again, half the full amount).***

    You aren’t eligible to claim the 2021 Recovery Rebate Credit if any of the following apply:

    1) You could be claimed as a dependent on another taxpayer’s 2021 tax return

    2) You’re a nonresident alien.

    3) You don’t have a valid SSN issued to you by the due date of your tax return and you don’t claim a dependent who has a valid SSN or ATIN.

    ***Also, estates, trusts, and individuals who died before January 1, 2021 do not qualify for the 2021 Recovery Rebate Credit.***

    If your income is $73,000, or less, you can file your federal tax return electronically for free through the IRS Free File Program. The fastest way to get your tax refund is to file electronically and have it direct deposited, contactless and FREE, into your financial account. In addition, you can have your refund also deposited into your prepaid debit card, or mobile app, as long as you provide the proper account / routing numbers.

  • If you can be claimed as a dependent on someone else’s 2021 tax return, then you cannot claim a dependent on your tax return. You also cannot claim the 2021 Recovery Rebate Credit.

    The 2021 Recovery Rebate Credit includes up to an additional $1,400 for each qualifying dependent you claim on your 2021 tax return. A qualifying dependent is a dependent who has a valid Social Security number or Adoption Taxpayer Identification Number issued by the IRS. A valid SSN for the 2021 Recovery Rebate Credit is one that is issued by the Social Security Administration by the due date of your 2021 tax return (including an extension if you requested the extension by the due date).

    To claim a person as a dependent on your tax return, that person must be your qualifying child or qualifying relative.

    A child is your qualifying child if the following conditions are met:

    1) Relationship to you - The child is your son, daughter, stepchild, eligible foster child, brother, sister, stepbrother, stepsister, half-brother, half-sister, or a descendant of any of them (for example, grandchild, niece, or nephew).

    2) Age - The child was:

    -under the age of 19 at the end of the tax year and younger than you

    -under the age of 24 at the end of the tax year, a student, and younger than you or any age and permanently/ totally disabled.

    3) Citizenship - The child’s a U.S. citizen, U.S. national, U.S. resident alien, or a resident of Canada or Mexico.

    4) Residency - The child lived with you for more than half of the tax year. For exceptions to this requirement, see Publication 501.

    5) Support - The child didn’t provide over half of his or her own support for the tax year.

    6) Tax return - The child doesn’t file a joint return for the year (or files it only to claim a refund of withheld income tax or estimated tax paid).

    A person is your qualifying relative if the following conditions are met:

    1) The person can't be your qualifying child or the qualifying child of any other taxpayer.

    2) The person either is related to you in one of several ways or lived with you all year as a member of your household (and your relationship must not violate local law).

    3) The person is a U.S. citizen, U.S. national, U.S. resident alien, or a resident of Canada or Mexico.

    4) The person's gross income for the year must be less than $4,300. (Exceptions exist if the person is disabled.)

    5) You must provide more than half of the person's total support for the year. (Exceptions exist for multiple support agreements, children of divorced or separated parents, and parents who live apart.)

    6) The person doesn’t file a joint return for the year (or files it only to claim a refund of withheld income tax or estimated tax paid).

    To claim a person as a dependent on your tax return, that person must be your qualifying child or qualifying relative. See Whom May I Claim as a Dependent? to determine if you can claim someone as a dependent.

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