Additional questions regarding the second Stimulus Relief payments:
- Will I need to pay taxes on my relief money?
o No. EIP (Economic impact payments) or stimulus relief payments are not taxable and should not be reported as income.
- What if I didn’t receive the full first stimulus payment? What options do I have for this next one or not?
o The Recovery Rebate Credit (RRC) is a credit authorized by the Coronavirus Aid, Relief, and Economic Security (CARES) Act. If you were eligible for the EIP, but did not receive one or you received less than the full amount as an advanced payment in 2020, then you can claim a RRC on your 2020 tax return. This credit can increase your refund amount or reduce the amount of taxes you may owe.
- How do I claim the RRC?
o You’ve proven eligible; however, you were not issued a stimulus check in 2020.
o You are single, your AGI is less than $75,000, and your stimulus payment was less than $1,200.
o You are married, filed jointly, your AGI is less than $150,000 and your stimulus payment was less than $2,400.
o If you didn’t receive $500 for each qualifying child in the first stimulus payment or $600 in the second stimulus payment.
When in doubt, contact Red Rock Tax & Consulting for an appointment and we’ll help you understand what you’re eligible for. We’ll help you plan and manage all your financial needs.
