Economic Stimulus Payment Information for 2010

Many taxpayers who received a stimulus payment in 2007 will not get the recovery rebate credit for 2008 on their federal income tax return. However if you did not get the stimulus return last year you may qualify and be eligible for it this year in 2009 according to the IRS.

It can all be confusing but there will be a group of people that will fall into this category for various reasons. To determine if you are eligible for the recovery rebate credit, you need to know how much you received last year. Why do I need to know this amount?

If you received a stimulus payment last year it should not be shown as income on your 2008 tax return. Many people received an “Economic Stimulus Payment” for 2008, but some people can get a larger payment or first time payment this year in 2009.

This amount (per the IRS) is called the “Recovery Rebate Credit” and is a onetime benefit if you did not receive a less than full economic stimulus payment last year or nothing at all. You may even be eligible to recover some of the unpaid portions from last year if you received partial payment.

The credit will add additional cash to your refund or decrease the amount you may owe on your federal taxes. The categories are described below as to who qualifies for the recovery rebate credit this year.

• You did not receive and economic stimulus payment

• Received less than a full amount because of too high or too low of qualifying income level

• If you had a child since you last filed for a stimulus check

• Someone else claimed a dependant last year, i.e. divorced spouse, disabled family member, child adopted after eligibility period, etc…

• You did not have a Social Security number last year

Instructions can be found on the 1040, 1040A or the 1040EZ if you’re filing paper and if you file electronically it will be calculated for you automatically. TurboTax Online will let you know if you qualify and guide you as your prepare your tax return. So relax, if you qualify TurboTax Online will ensure that you get a stimulus payment.