2008 IRS Tax Recovery Rebate Credit Calculator Check Schedule

We discussed about Tax Stimulus Check yesterday and today, we are going to talk about Recovery Rebate Credit.

What is a Recovery Rebate Credit?

The recovery rebate credit is a one time benefit for people who didn't receive the full economic stimulus payment last year, however due to certain reasons they might be eligible now in 2009 for some or all of the unpaid portion. The amount you receive for the recovery rebate credit will be included as part of your tax refund, as shown on your tax return.

Who will qualify for Recovery Rebate Credit?

1. Individuals who did not receive an economic stimulus payment last year or has received only a portion of the stimlus payment last year.
   
2. 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.
   
3. Families who gained an additional qualifying child in 2008.
   
4. 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.
   
5. Individuals who did not have a valid Social Security number in 2007 but who did receive one in 2008.
   

How can I get Recovery Rebate Credit?

You need to claim the recovery rebate credit on Form 1040, 1040A or 1040EZ. 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.

Please note that You need to know the amount of your 2008 economic stimulus payment to determine if you are eligible for the Recovery Rebate Credit.

Can i use Recovery Rebate Credit Calculator?

IRS is currently working on a Recovery Rebate Credit Calculator which should be available by first week of February. The Recovery Rebate Calculator will help you determine whether you qualify for this credit, and if so, how much credit you may claim on your 2008 income tax return.

There won't be a Recovery Rebate Credit Check issues to you. Instead it would be a part of the your tax refund check.