For people who claim the head-of-household filing status, the tax credit is reduced if your AGI tops $112,500. If you file a joint return with your spouse, your credit will start to shrink if your 2021 AGI is over $150,000. Your credit will be reduced – possibly to zero – if you select the single, married filing separately, or a qualifying widow(er) filing status and have an adjusted gross income (AGI) above $75,000 on your 2021 tax return. Then you add on $1,400 for each dependent claimed on your 2021 return.Īfter adding up the base amount and any additional amount for your dependents, you then need to determine if your recovery rebate credit is reduced because of your income. For married couples filing a joint tax return, the base amount is $2,800 (i.e., twice the general base amount). For most people, the base amount for the 2021 credit is $1,400. 2023?Īs with the stimulus checks, calculating the amount of your recovery rebate credit starts with a "base" amount. What Are the Income Tax Brackets for 2022 vs. (Don't include any information regarding your first- or second-round stimulus checks or the 2020 recovery rebate credit on your 2021 return!) However, the amount of your recovery rebate credit is based entirely on information found on your 2021 tax return. In many cases, that information came from the Social Security Administration (SSA), Railroad Retirement Board, or Veterans Administration (VA) if you receive benefits from one of those federal agencies. If you didn't file a return for either of those two years, the IRS sent a third stimulus check based on whatever information, if any, was available to it. Third stimulus checks were generally based on information from either your 2019 or 2020 tax return, whichever was most recently filed when the IRS began processing your payment. Similar to the eligibility rules, calculation of the 2021 recovery rebate credit is generally the same as the calculation of third-round stimulus checks, except that they're based on information from different sources. How to Calculate the Recovery Rebate Credit Armed Forces at any time during 2021, only one of you needs to have a valid SSN to receive up to $2,800, plus up to $1,400 for each qualifying dependent.Ī person who died in 2021 or 2022 can still claim the recovery rebate credit on his or her final tax return prepared by a surviving spouse or representative if the requirements listed above are satisfied. However, if either you or your spouse was an active member of the U.S. Generally, if neither you nor your spouse have a valid SSN, you can claim only up to $1,400 for each qualifying dependent claimed on your tax return. If you're claiming the extra $1,400 for a dependent, the dependent must also have a valid SSN or adoption taxpayer identification number (ATIN). For married couples filing a joint return, if only one spouse has a valid SSN, you can only claim up to $1,400 for the spouse with a valid SSN.
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