Recovery Rebate Credit for 2008

If you didn’t receive a rebate check in 2008, or if you think you should have gotten a larger check than you did, you can apply for the Recovery Rebate Credit on your 2008 tax return.

The Recovery Rebate Credit is a special one-time benefit that most people received last year in the form of an Economic Stimulus Payment. But people who did not receive the maximum amount of the Economic Stimulus Payment, or whose circumstances have changed, may be eligible now.

In most cases, the IRS will calculate whether a person is eligible and how much of the credit may be due automatically. To allow the IRS to calculate this automatically, simply file your 2008 tax return and follow the “Credit Figured by the IRS” instructions. However, may choose to calculate the Recovery Rebate Credit themselves instead.

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Final Deadline for Filing Taxes and Receiving Rebate Check Approaching Quickly

Don’t forget that October 15 is the final deadline for filing your 2007 tax return. In addition, it’s your last chance to file for the economic stimulus rebate check.

As a reminder, if you file a 2007 federal income tax return, and have $3,000 or more of qualifying income (including amounts received from Social Security and certain veterans benefits) you may be eligible for a stimulus payment. Other criteria that you must meet: you must have a valid Social Security number and you can’t be claimed as a dependent by someone else.

Rebate checks can be as much as $600 per individual, plus $300 for each qualifying child under the age of 17. If you don’t have any tax liability but otherwise qualify, you may be eligible for a stimulus payment of $300, also with an additional $300 for each qualifying child.

While most people have already filed their 2007 tax returns, there are still millions who filed extensions who have not filed yet filed their tax return. You must file by October 15 to recieve the stimulus payment this year.

Even if you’ve already filed and received your stimulus payment, you may want to check with your parents and/or elderly relatives who might be eligible, but do not normally file a return. If they qualify, but haven’t filed a 2007 return yet, they have until October 15, 2008, to do so in order to receive an economic stimulus payment in 2008.

Filing information is available on the IRS website, including a Free File return preparation option for qualifying individuals. Individuals who are eligible but do not receive a stimulus payment in 2008 won’t lose out–but they’ll have to wait until 2009 to claim a credit on their 2008 federal income tax returns.

Tax Rebates Are On The Way!

The IRS started transmitting payments for the tax rebate today, four days ahead of schedule. If you elected direct deposit on your 2007 tax return, you could receive your rebate as soon as today.

For more information including a schedule showing when you can expect to receive your rebate check, please visit my squidoo lens: 2007 Tax Rebate Checks, or the IRS website.