Question 13

U.S. citizens and resident aliens received during the second quarter of 2020, the Economic Impact Payment (EIP-1) of $1,200 for Individuals or Head of Household filers and $2,400 for Married Filing Jointly filers. As a result of this economic relief payment, this incentive is subject to the following treatment (best option):

a) Taxpayers will return the money received in the 2021 tax year. b) Taxpayers will apply the payment as an income tax credit in the 2021 tax year. c) The relief payment will be divided and paid throughout two years. d) None of the above.

Question 19 Sam came to your office on April 15, 2021; he mentioned that he didnt get the full amounts of the Economic Impact Payment. He only received $1,200 and indicated that he might also qualify for the Recovery Rebate Credit. What the best option for Sam in order to claim the remaining credit?

a) He must file a 2020 tax return to claim the credit even if he doesnt normally file. b) He should wait until the 2021 tax year to claim the credit c) The remaining credit will be offset with the EIC credit. d) None of the above.