Under the Recovery Rebate Credit, some people who did not get the economic stimulus payment in 2008 may be able to receive it in 2009. People who received less than they expected in 2008 may be able to receive more in 2009.

To receive such credit and avoid delays in tax refunds, taxpayers must know the correct amount of the stimulus rebate received in 2008. Taxpayers who forget the amount may check the amount listed on Notice 1378, which the IRS mailed last year to individuals who received the economic stimulus rebate. They may also go to the IRS Web site, and click on How much was my stimulus payment? or call the IRS at 1-866-234-2942.

The exact amount of last year’s economic stimulus payment must be entered on the recovery rebate credit worksheet. Most people will not receive additional money. The people who do would include those:

• Whose financial situation changed dramatically from 2007 to 2008, or
• Who did not file a 2007 return, or
• Whose family gained an additional qualifying child in 2008, or
• Who were claimed as dependents on someone else’s 2007 return but cannot be claimed as dependents by someone else in 2008.

Other Facts About the Economic Stimulus Payment

The economic stimulus payment is not taxable and should not be reported as income on the 2008 tax return.

A person who is due additional funds under the Recovery Rebate Credit will receive the funds, along with any other tax refund, in one check. The IRS will not issue a separate check for additional funds due under the Recovery Rebate Credit.

Filing for the Recovery Rebate Credit should not unduly delay refunds. Rumors that a person who applies for the credit will have his or her refund delayed for up to 12 weeks are false.

This article is from the March 2009 issue of Looking Out for Your Legal Rights^®.