Who is eligible for a recovery rebate? All US. residents with adjusted gross income under $75,000 ($112,500 for head of household and $150,000 married), who are not the dependent of another taxpayer and have a work-eligible Social Security Number, are eligible for the full $1,200 ($2,400 married) rebate. They are also eligible for an additional $500 per child.
What about taxpayers with adjusted gross income over $75,000 ($150,000 married)? The rebate amount is reduced by $5 for each $100 that a taxpayer’s income exceeds the phase-out threshold. The amount is completely phased-out for single filers with incomes exceeding $99,000 and $198,000 for joint filers with no children.
What if my income was above the threshold in 2019, but I’ve lost my job due to the corona virus? Can I still get a rebate check? If your income in 2019 was in the phase-out range, you would still receive a partial rebate based on your 2019 tax return. However, the rebate is actually an advance on a tax credit that you may claim on your 2020 tax return. If your income is lower in 2020 than in 2019, any additional credit you are eligible for will be refunded or reduce your tax liability when you file your 2020 tax return next year.
Who qualifies as a child for purposes of the rebate? Any child who is a qualifying child for the purposes of the Child Tax Credit is also a qualifying child for the purposes of the recovery rebate. In general, a child is any dependent of a taxpayer under the age of 17.
I am eligible for a rebate, what do I have to do to receive it? For the vast majority of Americans, no action on their part will be required to receive a rebate check since the IRS will use tax return information.