Remember last year’s economic stimulus payment? The $600 per person, $300 per child, tax rebate check from the IRS? Well, if you didn’t receive the full amount in 2008, there is a good chance that you will be eligible for a recovery rebate this year. According to IRS:
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.
If you use a software such as TurboTax or TaxCut to prepare your tax return, the software will calculate the recovery credit for you. If you are still filling out paper forms, you may choose to have IRS calculate the rebate instead. Or, you can use an IRS online tool (no longer available) or worksheets to figure out the amount yourself.
You will need the amount of stimulus payment you received in 2008 to calculate the recovery rebate. If you don’t remember, IRS allows you to retrieve it using another online tool (no longer available). Make sure you know the number of Exemptions claimed on your 2007 tax return before using the tool.