On your 2008 tax return you may be eligible to claim the recovery rebate tax credit. This amount will be up to $600 for a single person and up to $1200.00 for a married couple filing jointly. To be able to receive this credit your tax liability must be more than the credit. This would also include and AMT taxes minus any nonrefundable credits you may have claimed other than the child tax credit. A credit of $300.00 will be available if you meet either of the following two requirements:
Your earned income must be at least $3,000.00. This should include disability payments as well as social security payments.
Your earned income is more than $8,950 for single filers and $17,900 if you are married and filing jointly.
If you do in fact meet any of the above requirements then you may also be eligible for a $300.00 credit for each qualifying child. To receive the credit either for you or children, a social security number is required. You will not receive this credit if you are a dependent on someone else’s return.
This credit may be reduced by certain factors. Your average gross income for a single filer must be below $75,000 and below $150,000 if you are married filing jointly. The credit will be decreased by 5% of your average gross income for any earning above and beyond the credit thresholds. If you did receive a stimulus check in 2008 then this amount will also be eliminated from your total recovery rebate credit. You will not be required to pay any overpayments back if your credit is less than the stimulus check that you did receive.
TurboTax will automatically let you know, as you prepare your 2008 tax returns, if you qualify for a tax rebate. It will also do the calculations for you.
To claim the credit on your 2008 return, please visit TurboTax Online.