IRS Provides Guidance On Recovery Rebate Calculation Issues

The IRS has updated its FAQs on calculating the recovery rebate credit, including guidance indicating that people who inadvertently omit their child's Social Security number on their return and receive a smaller credit than expected should call the agency.

The Internal Revenue Service's FAQs, which were updated Tuesday, provide guidance on calculations of the recovery rebate credit, which people claim on their 2020 return if they didn't receive the full economic impact payments to which they were entitled last year. The guidance includes steps people can take if issues crop up after they file their returns, including for parents who receive notices indicating their recovery rebate credits for 2020 were changed because of missing Social Security numbers for their children.

--Editing by Vincent Sherry. 

For a reprint of this article, please contact reprints@law360.com.