Recovery Rebate Credit – Second Shot at Economic Stimulus Payment

Tweet

Did you receive an economic stimulus payment in 2008? Did you get the full amount?  If you answered no to either of those questions then you may still have a shot at getting an economic stimulus payment in 2009 as a result of the Recovery Rebate Credit.

If you didn’t qualify for the stimulus payment but your financial situation has changed then you need to check this out.  When the payments were first sent they were based on your 2007 tax returns.  If your financial circumstances changed in 2008 then you may be eligible for a payment now (if you didn’t get one in 2008).

This is considered a credit which adds to the amount of your refund or deducts from the amount of tax you owe.

You could be eligible if:

• You did not receive an economic stimulus payment in 2008.  If you received the full amount then this doesn’t apply to you.

• You received lass than the full amount possible, $600 per individual and $1200 per married couple, because your income was either too high or too low.  Again if you received the full amount this doesn’t apply to you.

• You had an additional qualified child in 2008.

• An individual who could be claimed as dependent on another return in 2007 but cannot be claimed in 2008.

• You didn’t have a valid social security number in 2007 but do in 2008.

How do you get the credit if you think you qualify?  Claim the Recovery Rebate Credit on your tax forms (1040, 1040A, or 1040EZ).  The IRS will figure out the credit for you.  There are instructions for figuring it out yourself included in the 1040 instruction booklet.

If you don’t recall how much stimulus you received in 2008 (if you didn’t get the full amount) then check out How Much Was My 2008 Stimulus Payment.

The IRS has a Question and Answer About the Recovery Rebate Credit page that you should go to if you need more information.

Tweet