EIP Payments 1 and 2 and Recovery Rebate Credit 2020 Taxes: CARES ACT and Consolidated Appropriations ACT

When completing a 2020 tax return, you must indicate whether a taxpayer received their Economic Impact Payments/stimulus. Taxpayers who did not receive Economic Impact Payment 1 or 2, can claim a Recovery Rebate Credit for the amount they did not receive, on 1040 line 30 of their 2020 tax return.

When Were The EIP Payments Issued? 

EIP 1: Created by the CARES ACT in March of 2020 and issued shortly after.

EIP 2: Created By the Consolidated Appropriations ACT in December of 2020 and issued shortly after.

How Do I Know If I Received Economic Impact Payment 1 or 2?

Taxpayers can check the status of their EIP's in their online IRS account, or contact the payment trace hotline at 1-800-919-9835.

How Much Was The First Economic Impact Payment?

Without regards to phase-out thresholds the payment amounts were as follows:

• $1,200 for each taxpayer ($2,400 for MFJ)
• $500 for each qualifying child (under 17)

Stimulus Phase-Out Ranges
Reminder that the 3rd stimulus payment amount begins to be reduced when an individual’s AGI reaches the following:

• $75,000 for single filers (reduced to zero with income over $80,000)
• $150,000 for married filing joint filers (reduced to zero with income over $180,000)
• $112,500 for Head of household filers (reduced to zero with income over $120,000)

How Much Was The Second Economic Impact Payment?

Without regards to phase-out thresholds the payment amounts were as follows:

• $600 ($1,200 for MFJ)
• $600 for each qualifying child (under 17)

Stimulus Phase-Out Ranges
Reminder that the 3rd stimulus payment amount begins to be reduced when an individual’s AGI reaches the following:

• $75,000 for single filers (reduced to zero with income over $80,000)
• $150,000 for married filing joint filers (reduced to zero with income over $180,000)
• $112,500 for Head of household filers (reduced to zero with income over $120,000)

Completing The Recovery Rebate Credit Worksheet On a 2020 Return

When completing a 2020 tax return, you must complete the RRC Worksheet, or select the box on 1040 Line 30 that no worksheet entries are needed. 

Only select the no entries needed box, if the taxpayer received the full amount of stimulus for everyone on the return, and did not have any new children born in tax year 2020.

Entering Recovery Rebate Credit On A 2020 Tax Return

Our tax software will assist you with the calculation of this credit, by having you complete the Recovery Rebate Credit Worksheet. You can access this worksheet through the Verify, or by selecting worksheets from 1040 Line 30.

To complete the Recovery Rebate Credit Worksheet enter the amount of EIP received, in each EIP section. If the taxpayer received no EIP, checkmark the no stimulus received boxes as needed.

Upon completing the Recovery Rebate Credit Worksheet you can view the amount of the taxpayer's Recovery Rebate Credit on 1040 Line 30.