The IRS will be providing an online calculator to help you determine whether you qualify for this credit, and if so, how much credit you may claim on your 2008 income tax return. The calculator is expected to be available in late February 2009, so in the meantime:
- Complete everything on your 2008 Form 1040, Form 1040A, or Form 1040EZ except for this credit. You will need information from one of these forms to determine the amount of credit you may claim.
- Know the Amount of Your Economic Stimulus Payment (ESP)
Since the ESP was an advance payment of the Recovery Rebate Credit, the amount of credit you may now claim (if any) will depend on how much ESP you received.
You can look this up using the IRS tool: How Much Was My 2008 Stimulus Payment?
If you were paid an ESP that was reduced or eliminated by the IRS in order to pay for back taxes, etc., then the amount to enter into the calculator is the amount before that reduction.
Your ESP was based on your 2007 filing status, and the Recovery Rebate Credit is based on your 2008 filing status. Each spouse who filed jointly in 2007 is considered to have received half of the ESP.
So, if you switched your filing status to or from Married Filing Jointly between 2007 and 2008 (or you are filing with a different spouse in 2008), you will need to enter only the portion paid to each spouse filing the 2008 return.
TIP: If you do not have at least $3,000 of qualifying income in 2008, but you do have enough other income that you are required to file a tax return, you may be eligible for a Recovery Rebate Credit of $300 ($600 if married filing jointly) if your tax (before this credit and before the Child Tax Credit) is at least $1. You may also qualify for a credit of up to $300 per qualifying child.
CAUTION: 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:
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.
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.
If you are not sure, you will be able to use the calculator to confirm how much credit (if any) you may claim.
For more information, please see the IRS Recovery Rebate Credit Information Center.
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