2020 recovery rebate faq
Are you eligible for the CARES Act Recovery Rebate?
Did you file a 2018 or 2019 Tax Return?
Taxpayers are encouraged to file their 2019 or 2018 tax returns, if they have not already done so. The IRS will use the Adjusted Gross Income (AGI) or income reported on the returns from these years to determine eligibility for the Recovery Rebate. Eligible taxpayers can receive a rebate up to $1,200 per person and $500 per child under age 17.
Are seniors, whose only income is from Social Security, eligible for the Recovery Rebate?
Yes, seniors whose only income is from Social Security, are eligible to receive the Recovery Rebate. The IRS will use your Social Security Benefit Statement or Form SSA-1099 to determine your eligibility. However, to receive your rebate as quickly as possible, the IRS is encouraging seniors to file their 2018 or 2019 Tax Return.
Are college students eligible for the Recovery Rebate?
College students are only eligible if they were not claimed as a dependent on their parent’s tax return.
Are nonresident aliens residing in the US eligible for the Recovery Rebate"?
No, nonresident aliens are not eligible for the Recovery Rebate.
If I have past due debts to a federal or state agency, or owe back taxes, will my rebate be reduced or offset?
No, the Recovery Rebate will not be reduced for past due federal or state debts such as student loan payments or unpaid/back taxes. However, if taxpayer has past due child support payments that the state has reported to the IRS, then the payment may be offset.
Is the Recovery Rebate taxable? Will I have to pay back any amount if the rebate based on my 2019 return is larger than what it would be if based on my 2020 tax return?
No, the rebate is treated like the Earned Income Credit or the Child Tax Credit. It is not considered income. Additionally, if the amount of the rebate you qualify for based on your 2020 tax return is less than what you qualify for based on your 2019 tax return, the difference does not have to be paid back.
Do dependents, other than children under 17, qualify a taxpayer for the additional $500 per dependent?
No, the additional $500 per child is limited to children under 17,
My bank account or address have changed since I filed my 2018 or 2019 Tax Return. What should I do?
The IRS will release funds within the next 3 weeks. Taxpayers should start to see the rebate direct deposited into the account that they authorized for deposit of refund or payment of taxes on their 2018 or 2019 tax return or mailed to address on last filed return. Within 15 days of mailing your check or directly depositing it into your bank account, you will receive a notice in the mail indicating the method of payment, the amount of payment, and an IRS phone number to call if you didn't receive your payment. When the IRS phone number becomes available, it will be posted on this website.
Sources: Accounting Today and CARES ACT Sec. 2201