How to Receive Recovery Rebate Credit on Tax Return

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Things You’ll Need:

  1. Your Social Security Number,
  2. Your 2007 Filing Status, and
  3. Number of Exemptions claimed your 2007 tax return
  4. PC with internet access
  5. IRS website

Step 01- You need to know the amount of your 2008 economic stimulus payment to determine if you are eligible for the Recovery Rebate Credit.

Step 02- YOU MAY BE ELIGIBLE IF YOU FALL INTO ANY OF THE FOLLOWING:
-[A] Individuals who did not receive any 2008 economic stimulus payment.
-[B] Those who received less than the maximum 2008 economic stimulus payment: $600 per taxpayer; $1,200 if married filing jointly — due to qualifying or gross income either being too high or too low.
-[C] Families who gained an additional qualifying child in 2008.
-[D] 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.
-[E] Individuals who did not have a valid Social Security number in 2007 but who did receive one in 2008.

Step 03- HOW TO CALCULATE HOW MUCH YOU WILL RECEIVE:-[A] You can use this online tool if you dont remember how much you received from the economic stimulus package based on 2007 tax return: https://sa2.www4.irs.gov/irfof/IRServlet?app=IRACTC&selectLanguage=en.
-[B] Calculate it on Form 1040, 1040A or 1040EZ. It is basically $600 MINUS the amount you received from the economic stimulus package based on 2007 tax return.
-[C] The IRS will calculate it for you.

Step 04- HOW TO GET THE RECOVERY REBATE CREDIT:-You need to claim the recovery rebate credit on Form 1040, 1040A or 1040EZ. The instructions for these forms will show you which lines to use. [Unlike the economic stimulus payment, the recovery rebate credit will be included in your tax refund for 2008 and will not be issued as a separate payment.]

Tips & Warnings

  • More information can be found on the IRS website.
  • You cannot claim this credit if you have already received the maximum amount of the credit in the form of your Economic Stimulus Payment. So, you cannot claim the credit if: -[A] You received (before any reductions that paid back taxes, etc.) an Economic Stimulus Payment of $600 ($1,200 if married filing jointly) and you have no qualifying children. -[B] You received (before any reductions that paid back taxes, etc.) an Economic Stimulus Payment of $600 ($1,200 if married filing jointly) plus $300 per qualifying child, and you do not have additional qualifying children in 2008.
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