Many of you received a stimulus check earlier this year. What you received was an advance based on your 2018 or 2019 adjusted gross income. The recovery rebate credit will be based on your 2020 adjusted gross income. The CARES Act provided for a stimulus check of $1,200 for individuals, or $2,400 for joint returns and $500 per child under age 17. The credit is phased out at the rate of 5% of adjusted gross income over $150,000 for joint returns and over $75,000 for individual returns. If you received too much advance stimulus, you will not have to pay it back on the 2020 tax return. If you didn't receive enough, you will get a credit against your 2020 taxes. Tutto bene.
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