Recovery Rebate Credit Available This Year
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The recovery rebate credit is a one-time benefit for people who didn't receive the full economic stimulus payment last year and whose circumstances may have changed, making them eligible now for some or all of the unpaid portion.
Who Is Eligible for the Recovery Rebate Credit?
Last year's Economic Stimulus Payments were based on 2007 tax return information, while the Recovery Rebate Credit will be based on 2008 return information. Since many individual taxpayer situations may change from year to year, some people who were not eligible last year will be eligible now. Following are some factors that may affect eligibility for the Recovery Rebate Credit.
Income change: Some people may have received less than the full Economic Stimulus Payment in 2008 ($600 for single filers or $1,200 for married filers) because their qualifying or gross incomes were either too high or too low. A change in income could make a filer eligible for more of the credit in 2009.
Addition of a child: Filers could get an additional $300 for the birth or adoption of a child in 2008.
Social Security and veterans' benefits recipients: If a retiree or veteran did not receive at least $3,000 in qualifying benefits in 2007 but did collect at least that amount in 2008, he or she may be eligible.
No longer a dependent: Individuals who were claimed or could be claimed as a dependent on someone else's tax return in 2007, but who cannot be claimed as a dependent on someone else's return in 2008, may now be eligible.
Social Security Number: Individuals who did not have a valid Social Security Number in 2007 but received one in 2008 may now be eligible.
For more information, see the Recovery Rebate Credit Information Center or contact us.
