As a married couple, Yihong and Kaylees EIP was $2,400. In 2020, they computed their recovery rebate

Question:

As a married couple, Yihong and Kaylee’s EIP was $2,400. In 2020, they computed their recovery rebate credit as $2,900 due to the birth of a child in 2020. The 2020 net impact of the EIP and RRC will be to:
a. Increase their income
b. Decrease their tax liability by $500
c. Increase their tax liability by $500
d. Have no impact on their tax liability

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