Taxpayers who received the third Economic Impact Payment in 2021 will receive IRS Notice 1444-C documenting the amount of payment. Eligibility for the Recovery Rebate Credit on the 2021 tax return is based on the taxpayer's tax status as of December 31, 2021.
Eligibility Requirements:
- Taxpayer must be a US citizen or US Resident Alien.
- Taxpayer must have a valid Social Security Number (SSN).
- Taxpayer cannot be claimed as a dependent on another tax return.
The credit has an AGI phaseout limitation:
| Filing Status | AGI phaseout begins |
Maximum AGI |
| MFJ / Qualifying Widow(er) | $150,000 | $160,000 |
| Head of Household | $112,500 | $120,000 |
| Single / MFS | $75,000 | $80,000 |
The same military eligibility exceptions for claiming the Recovery Rebate Credit in 2020 also apply to 2021.
There are two places in TaxSlayer ProWeb to enter the Economic Impact Payment so that the Recovery Rebate Credit can be calculated:
- Federal Section
- Deductions
- Credits Menu
- Recovery Rebate Credit
- Federal Section
- COVID-19 Relief
- Recovery Rebate Credit
Note: This is a guide to the 2021 Recovery Rebate Credit in the TaxSlayer ProWeb program. It is not intended as tax advice.
Additional Information: