It is free money, which is technically a tax credit for the 2020 tax year. Since that would not be filed for another year, they advanced the issue date based on

It is free money, which is technically a tax credit for the 2020 tax year. Since that would not be filed for another year, they advanced the issue date based on previous tax returns. If you made $150k last year as a single person but just lost your job and end up out of work for 6 months, you won’t see your credit until you do your taxes next year. It is not an advance on your normal tax return.