The IRS has information on its website about the Recover Rebate Credit. 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.
Generally, a credit adds to the amount of a tax refund or decreases the amount of taxes owed. Therefore, the amount a taxpayer receives for the Recovery Rebate Credit will be included as part of his/her refund, as shown on the taxpayer's tax return. Unlike the 2008 Economic Stimulus Payment, it will not be issued as a separate check.
The people who fall into the categories described below may be eligible for the Recovery Rebate Credit this year:
- Individuals who did not receive an Economic Stimulus Payment.
- Those who received less than the maximum Economic Stimulus Payment in 2008 -- $600 per taxpayer; $1,200 if married filing jointly -- because their qualifying or gross income was either too high or too low.
- Families who gained an additional qualifying child in 2008.
- Individuals who could be claimed as a dependent on someone else's tax return in 2007, but who cannot be claimed as a dependent on another return in 2008.
- Individuals who did not have a valid Social Security number in 2007 but who did receive one in 2008.
Posted by Lewis J. Saret, General Editor, Wealth Strategies Journal.
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