Second Chance for a Stimulus Credit

It’s not often the government gives you a second chance at some extra cash if you miss out the first time.

But that’s the case with the Recovery Rebate Credit, part of the economic stimulus package that was passed by Congress in 2008.

Taxpayers got a maximum $600 each — $1,200 if married filing jointly — plus $300 per child. The credit started phasing out for individuals whose income was higher than $75,000, or $150,000 for married couples filing jointly. For individuals who were eligible, the minimum payment was $300.

The initial rebates were based on the 2007 tax return. If your income has fallen or your family situation has changed and you weren’t eligible for a stimulus check last year, or got a reduced one, you might be able to get the Recovery Rebate Credit when you file for 2008.

Even those who received the full amount in their stimulus check last year could be eligible for an additional $300 for the birth or adoption of a child in 2008.

Others who may qualify this year:

• A retiree or veteran who did not receive at least $3,000 in benefits in 2007 but did last year.
• A person who was claimed as a dependent on a tax return in 2007 but was not in 2008.
• People who did not have a Social Security number in 2007 but did in 2008.

Taxpayers can either calculate the rebate credit due them or have the IRS do it. If you want the IRS to figure out whether you’re due a rebate, write RRC on line 70 of Form 1040. There are other notations for those who received veterans’ disability and death benefits or who had nontaxable combat pay.