What is the 2021 Recovery Rebate Credit in ProWeb?

IRS Notice 1444-C is sent to taxpayers who get the third Economic Impact Payment in 2021, showing the amount of payment. The status of a taxpayer’s tax as of 31st December 2021 determines the eligibility for the Recovery Rebate Credit. 

Eligibility Requirements include: 

• The taxpayer has to be a US citizen or a US Resident Alien 
• The taxpayer must have a Social Security Number (SSN) that is valid
• The taxpayer must not be a dependent on another tax return 

Be informed that the credit has an AGI phaseout limitation 

Military eligibility exceptions for claiming the Recovery Rebate Credit that were applied in 2020 are the same ones applied in 2021. 

Entering the Economic Impact Payment aids in the calculation of the Recovery Rebate Credit. You can enter it in three different locations in the Taxx Savage ProWeb: 

1. Under the Basic Information from where you will see the Recovery Rebate Credit. 
2. The Federal Section. Under the Credits section, there is the Recovery Rebate Credit option. 
3. The Federal Section. Under the COVID-19 Relief option, you will find the option for Recovery Rebate Credit. 

Additional Information:

IRS: Q & A about the Third Economic Impact Payment