WHO IS ELIGIBLE FOR THE RECOVERY REBATE CREDIT?

(Virginia Beach, VA) Most of the 119 million taxpayers who received a full economic stimulus payment in 2008 may not be eligible for the new Recovery Rebate Credit (RRC), reminds Liberty Tax Service. However, some taxpayers who didn’t receive an economic stimulus payment and even some of those who did may qualify to claim the RRC. People who didn’t file a 2007 tax return last year can probably claim the entire portion of the RRC.
 
“Taxpayers who are experiencing changes in income and families which gained additional qualifying children in 2008 may qualify for claiming some or all of the RRC,” said John Hewitt, CEO and Founder, of Liberty Tax Service. People who weren’t claimed as a dependent in 2008 but were considered dependents in 2007 may also receive a full or partial RRC.
 
Those taxpayers who owed back taxes or child support and had their economic stimulus payment reduced or eliminated should report the original amount of the economic stimulus before the reduction on their RRC worksheet. If your filing status changed from Married Filing Jointly in 2007 to a different filing status in 2008, you must claim half of the stimulus payment received as a couple. If you received a Notice 1378 from the IRS, the correct amount of your economic stimulus payment is reported there and should be used when you calculate whether or not you will receive a Recovery Rebate Credit. If you can not find the notice, the amount you received can be found at: http://www.irs.gov/individuals/article/0,,id=185471,00.html 

To be eligible for the credit, taxpayers must either:

• Have total earned income, social security benefits and other designated benefits totaling at least $3,000 or
• Have a tax liability more than zero and also meet these income levels:

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