Four Tips to Help Taxpayers Avoid Errors On the
Recovery Rebate Credit
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| IRS Special Edition Tax Tip 2009-2
Most of the nearly 119 million taxpayers
who received the economic stimulus
payment last year will not be able to
claim the recovery rebate credit on
their 2008 federal income tax returns.
A small number of taxpayers who did not
receive the full economic stimulus
payment last year may be eligible to
claim the Recovery Rebate Credit on
their 2008 federal income tax return.
Figuring the Recovery Rebate Credit
incorrectly or entering inaccurate
information will delay the processing of
your tax return and any refund due.
Below are the four things every taxpayer
should know about this one-time credit,
which is related to last year’s Economic
Stimulus Payment:
1. You do not have to pay back
your Stimulus Payment and the payment is not
taxable.
2. Only a small number of
taxpayers are eligible. The vast
majority of taxpayers are not eligible to
receive the recovery rebate credit.
3. Did you have a major life change?
If so, you may be eligible to claim the
Recovery Rebate Credit. Some of the major
factors that could qualify you for the
Recovery Rebate Credit include:
1. Your financial situation changed
dramatically from 2007 to 2008.
2. You did not file a 2007 tax return.
3. Your family gained an additional
qualifying child in 2008.
4. You were claimed as a dependent on
someone else’s return in 2007, but
cannot be claimed as dependent by
someone else in 2008.
4. Any Recovery Rebate Credit
amount will be included in your refund.
The IRS will figure the credit for you and
include it in your refund or put it toward
any taxes owed.
Links:
Recovery Rebate Information Center |
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Page Last Reviewed or
Updated: January 27, 2009
