If you are like most taxpayers who received the economic stimulus payment last year, you will not be able to claim the Recovery Rebate Credit again on your 2008 federal income tax return. A small number of taxpayers may, however, be eligible to claim the Recovery Rebate Credit on their 2008 federal income tax return.
Below are the four things the IRS want every taxpayer should know about this one-time credit:
1. You do not have to pay back your Stimulus Payment and the payment is not taxable.
2. Less than an estimated 3 percent of taxpayers are eligible.
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:
- Your financial situation changed dramatically from 2007 to 2008.
- You did not file a 2007 tax return.
- Your family gained an additional qualifying child in 2008.
- 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.
For more information go to Recovery Rebate Information Center or contact us at www.cillierscpa.com.
