Don’t worry if the Economic Impact Payments (EIPs) you received exceed the amount you are entitled to when you calculate the proper amount on your 2020 tax return.
The COVID-19 Relief law deals with EIP overpayments with new Internal Revenue Code Sec. 6428A. ADDITIONAL 2020 RECOVERY REBATES FOR INDIVIDUALS.
Sec. 6428A(e)(1) states (in relevant part):
“(e) COORDINATION WITH ADVANCE REFUNDS
(1) IN GENERAL.—The amount of the credit
which would (but for this paragraph) be allowable
under this section shall be reduced (but not below
zero) by the aggregate refunds and credits made or
allowed to the taxpayer under subsection (f).”
In English, EIPs are really credits for tax code purposes. And the translation of “but not below zero” is no paying the IRS back for any overpayments of EIPs.
See the Text of the law on page 1967 at https://rules.house.gov/sites/democrats.rules.house.gov/files/BILLS-116HR133SA-RCP-116-68.pdf
The Division-By-Division Summary of COVID-19 Relief Provisions explanation of the law on page 8 reflects the same. See https://appropriations.house.gov/sites/democrats.appropriations.house.gov/files/Summary%20of%20H.R.%20133%20Coronavirus%20Relief%20Provisions.pdf
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