Economic Impact Payments and Recovery Rebate Credit 1

Economic Impact Payments and Recovery Rebate Credit 1

American Rescue Plan Act of 2021 IRS will send Letter 6475 and/or Notice 1444-C to Taxpayers in early 2022 Will detail amount of the 3rd EIP payment AND any Plus-Up payments (adjustments due to 2020 vs 2019 differences) Information will be available online by accessing their account Delays in any refund if amounts not entered accurately 2

EIP3 and RRC IRS draft F1040 instructions clearly ask for EIP received by the taxpayer, and spouse if filing MFJ Do not include EIP received by a dependent RRC for a properly claimed dependent is ok, even if someone else got EIP for that same dependent Taxpayer is entitled to RRC, even if another taxpayer received EIP for them, e.g., they were a dependent of another taxpayer in 2020 If individual is a dependent of another taxpayer, check the box on the personal information page (no RRC allowed) Even if another taxpayer does not claim the individual as a dependent 3

EIP3 and RRC If EIP was based on a joint return (e.g., 2020 or 2019), EIP received by either spouse is split between the two Includes EIP received for a dependent The amount received as EIP is reduced for the amount returned to the IRS Excess EIP3 does not have to be repaid If either spouse is military, be sure to mark as such 2021 EIP worksheet is being revised (for taxpayer to complete and use) 4

Questions and Answers about the 3rd EIP 5

Questions and Answers Is the IRS continuing to issue third EIP Payments based on 2020 tax returns individuals file in 2021? 6

Questions and Answers Is the IRS continuing to issue third EIP Payments based on 2020 tax returns individuals file in 2021? What can I do if someone else claimed me as a dependent in 2020 and I did not receive the 3rd EIP? 7

Questions and Answers I don’t usually file a tax return. Is the Non-Filers tools available if I’m not required to file? 8

Questions and Answers I don’t usually file a tax return. Is the Non-Filers tools available if I’m not required to file? What if I already filed my 2020 tax return and didn’t qualify for the 3rd EIP or received less of it because of my AGI? Will the payments now be sent to me if the unemployment compensation exclusion reduced my AGI and makes me eligible for the payment or for more? 9

“Taxpayer” An individual that could be a dependent is not a dependent if the other person that could claim them is not a “taxpayer” Individuals getting EIP, using the nonfiler tool, or filing solely to get RRC are not treated as taxpayers “Possible dependent” is not a dependent and can get available tax benefits If we see anything different from Treasury/IRS, will advise immediately 10

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