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2nd Covid relief payment reporting
Does anyone know if we have to report the 2nd Covid relief payment-- received in 2021-- on the 2020 tax return 1040 or should it be reported on the 2021 return next year?
Thank you.
TaxGuyBillAnswer
February 1, 2021
Hi TaxGuyBill
I understand that both the 1st and the 2nd payments are an advance payment tax credit, but I thought that we could take one on the 2020 return and the other one on the 2021 return if it meant maximizing the tax benefit allowed for our client. Have you seen anything in writing you could refer me to?
Thank you,
Where did you get that idea?
The law (IRC §6428A, from the COVID-related Tax Relief Act of 2020) says:
‘‘SEC. 6428A. ADDITIONAL 2020 RECOVERY REBATES FOR INDIVIDUALS.
‘‘(a) IN GENERAL.—In addition to the credit allowed under section 6428, in the case of an eligible individual, there shall be allowed as a credit against the tax imposed by subtitle A for the first taxable year beginning in 2020 an amount equal to the sum of—
