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 and whose circumstances may have changed, making them eligible now for some or all of the unpaid portion.

Who are Eligible:

People who fall into the categories described below may be eligible for the recovery rebate credit this year:

1. Individuals who did not receive an economic stimulus payment.
2. Those who received less than the maximum economic stimulus payment in 2008 — $600 per tapayer; $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 to Claim:

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.

Source: www.irs.gov