The following are answers to some basic
questions regarding the recovery rebate
credit. Check back periodically for updates
and additional questions and answers that
may be added.Basic Information
Q. What is the recovery rebate credit?
A. This credit is a new refundable credit
that is related to the 2008 economic
stimulus payment. Generally, a credit
increases the amount of a refund or reduces
the amount of taxes owed. Those who did not
receive their economic stimulus payment (or
did not receive what they were fully
entitled to) in 2008 are eligible for the
credit.
Q. What is the basis of the recovery
rebate credit calculation?
A. The recovery rebate credit is
calculated the same way and with the same
requirements as the 2008 economic stimulus
payment. The only difference is that the
credit is based on the tax year 2008 income
tax return and the stimulus payment was
based on the tax year 2007 income tax
return.
Qualifying for the Rebate
Q. Who is eligible?
A. Those who were eligible for the
stimulus payment but did not receive it (or
did not receive what they were fully
entitled to) in 2008 are eligible for the
credit. Also eligible for the credit are
those who did not meet the requirements for
the stimulus payment last year but whose
circumstances have since changed, causing
them to now meet the requirements.
Q. Why doesn’t everyone qualify for
the rebate?
A. Most taxpayers have already received
their full benefit in advance in the form of
the 2008 economic stimulus payment. However,
if certain conditions changed for taxpayers
in 2008, they may be eligible for an
additional benefit.
Q: How will the recovery rebate credit
payments be made?
A: The Treasury won't send out separate
economic stimulus payments for 2009.
Instead, those eligible will claim the
rebate credit on their 2008 returns. Credits
generally increase the amount of a refund or
reduce the amount of taxes owed.
Q. I was claimed as a dependent on my
parents’ 2007 tax return, and was not
eligible for the stimulus payment, but I
lived on my own in 2008. Do I qualify for
the rebate?
A. That depends on whether you can be
claimed as a dependent on your parents' 2008
return. The rebate is based on circumstances
that occurred in 2008, while the stimulus
payment was based on the 2007 tax return
filing information. You'll have to use the
tax booklet's worksheet on claiming the
recovery rebate credit to see if
you're eligible to claim it.
Claiming the Credit
Q. How do I claim the recovery rebate
credit?
A. Use the recovery rebate worksheet that
is found in your 2008 tax booklet to figure
the credit you can take, if any. Then,
include that figure in the payments section
of your 2008 tax return.
Q. How do I get help figuring the
credit?
A. The IRS will figure the credit for
you, if you enter “recovery rebate credit”
next to line 70 on your
Form 1040 (line 42 of
Form 1040A; line 9 of
Form 1040EZ). You can also access the
online recovery rebate tools using the
recovery rebate credit link on this Web
site. For taxpayers filing electronically,
the software will calculate any credit they
may be due.
Q. What information do I need to
figure the credit?
A. You need to know the amount of your
2008 economic stimulus payment to complete
the recovery rebate worksheet. The IRS sent
recipients Notice 1378, Economic Stimulus
Payment Notice, which reported this amount
and any reductions that were made to pay
other debts. If you don’t have your notice,
you can use the online tool
How Much Was My 2008 Stimulus Payment? to
find the amount.
Q. My filing status in 2007 was
different than it is for 2008. Does this
impact the amount of the credit I can claim?
A. Maybe. That's because married
taxpayers who file jointly are each assumed
to have received half of the economic
stimulus payment. So, if your filing status
for 2008 changed to or from Married Filing
Jointly or if you remarried in 2008, follow
these directions to determine the amount
you need to use when determining the
recovery rebate credit.
Q. What tools are available to help
figure the credit?
A. The IRS will post interactive tools on
this Web site to help figure the Recovery
Rebate Credit: the
Recovery Rebate Credit Calculator and
How Much Was My 2008 Stimulus Payment?.
The 2008 tax packages also include a
worksheet to help figure the credit.
Q. When can I expect to receive my
rebate?
A. The rebate is part of your 2008 income
tax refund. The amount you receive for the
recovery rebate credit will be included as
part of your refund, as shown on your tax
return. Unlike the stimulus payment, it will
not be issued as a separate check. You can
check the status of your refund under
Where’s My Refund?. Generally, you will
receive your refund within 6–8 weeks after
you file your return.
Q. I am not required to file a tax
return, but I still would like to get the
rebate. How do I claim the rebate?
A. You must file a tax form to claim the
credit, and be sure to fill in lines 7, 20a
and 70 of your Form 1040 (lines 7, 14a and
42 of Form 1040A; lines 7 and 9 of Form
1040EZ).
Q. Because the IRS applied part of my
stimulus payment to an outstanding debt, I
actually received less than the total amount
as stated on my Notice 1378. What amount
should I use when figuring my credit?
A. You must use the total amount
— the
amount before the deduction to satisfy the
debt — as stated on your Notice 1378. That
total is considered to be the amount of your
stimulus payment, even though part of it was
used to satisfy a debt.
Economic stimulus payments received
Q. Do I have to claim my stimulus
payment as income on my 2008 income tax
return?
A. No, the stimulus payment is not
reportable as income on your 2008 income tax
return.
Q. My stimulus payment was more than
what the worksheet calculates my recovery
rebate credit to be. Does this mean I will
have to pay the difference?
A. No, you do not need to repay the
difference, and the difference will not
affect your return. However, your recovery
rebate credit will be zero.
Q. Will the payment I received in 2008
reduce my 2008 refund or increase the amount
I owe for 2008?
A. No, the stimulus payment will not
reduce your refund or increase the amount
you owe when you file your 2008 tax return.
The combined amount you received in the form
of an economic stimulus payment plus any
additional amount you receive, if any, in
the form of a recovery rebate credit is
independent of the normal tax you would have
paid.
Q. I have no earned income and no
filing requirement, but I filed a 2007
economic stimulus payment return to get the
payment. Do I have to file a 2008 tax
return?
A. If you received your stimulus payment,
no. If you did not receive the stimulus
payment, and do not pay income tax but have
at least $3,000 in qualifying income for
2008, then you should file a 2008 tax return
to receive the recovery rebate credit.
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