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IRS Presents:Six Things You Need to Know About Your Economic Recovery Payment
Did you receive a $250 Economic Recovery Payment in 2009? You’ll need to know if you are claiming the Making Work Pay Tax Credit on your 2009 tax return.
Only individuals who received income from the Social Security Administration, Department of Veterans Affairs and Railroad Retirement Board received a $250 Economic Recovery Payment.
If you received benefits from one or more of these agencies, but you are unsure if you received the $250 Economic Recovery Payment, you can find out by using the “Did I Receive a 2009 Economic Recovery Payment?” feature online at IRS.gov or by calling 1-866-234-2942. These tools give you an easy way to verify if you received the one-time Economic Recovery Payment and which agency made the payment. These payments must be included when claiming the Making Work Pay Tax Credit on 2009 tax returns.
Here are six tips from the IRS that will help you determine if you received an Economic Recovery Payment:
- If you had earned income in 2009 or are a government retiree and received an Economic Recovery Payment you need to report the payment and the amount when claiming the Making Work Pay and Government Retiree Credit on Schedule M, Making Work Pay Credit and Government Retiree Credits or as you complete your return using e-file software.
- The Economic Recovery Payments are not taxable income; however, anyone who receives social security, veteran or railroad retirement benefits, as well as certain other government retirement benefits, must reduce the Making Work Pay Tax Credit they claim by the amount of any payment they received in 2009.
- To verify whether you received the $250 payment, you can call 1-866-234-2942 and select Option 1 to access the “Did I Receive a 2009 Economic Recovery Payment?” telephone feature. The online version for verifying your Economic Recovery Payment will be available on IRS.gov in mid-March.
- When using the “Did I Receive a 2009 Economic Recovery Payment?” feature to determine if you received an Economic Recovery Payment, you must provide your Social Security number, date of birth and zip code from your last filed tax return.
- You must make a separate inquiry for each person on the tax return when using the “Did I Receive a 2009 Economic Recovery Payment?”, even if you are filing a joint tax return.
- Not claiming the Economic Recovery Payment on the Schedule M can delay the processing of your tax return. To avoid delays be sure to use the “Did I Receive a 2009 Economic Recovery Payment?” feature to find out if you received the payment.
More information about the Economic Recovery Payment and the Making Work Pay Tax Credit can be found at IRS.gov/recovery. Schedule M and the related instructions can be obtained at IRS.gov or can be ordered by calling 800-TAX-FORM (800-829-3676).
Links:
- Did I Receive a 2009 Economic Recovery Payment?
- Economic Recovery Payment
- Making Work Pay Tax Credit
- The American Recovery and Reinvestment Act of 2009: Information Center
- Schedule M, Making Work Pay Credit and Government Retiree Credits
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IRS Presents: Ten Facts about Claiming the Child Tax Credit
The Child Tax Credit is a valuable credit that can significantly reduce your tax liability. Here are 10 important facts from the IRS about this credit and how it may benefit your family.
- Amount – With the Child Tax Credit, you may be able to reduce your federal income tax by up to $1,000 for each qualifying child under the age of 17.
- Qualification – A qualifying child for this credit is someone who meets the qualifying criteria of six tests: age, relationship, support, dependent, citizenship, and residence.
- Age Test – To qualify, a child must have been under age 17 – age 16 or younger – at the end of 2009.
- Relationship Test – To claim a child for purposes of the Child Tax Credit, they must either be your son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister or a descendant of any of these individuals, which includes your grandchild, niece or nephew. An adopted child is always treated as your own child. An adopted child includes a child lawfully placed with you for legal adoption.
- Support Test – In order to claim a child for this credit, the child must not have provided more than half of their own support.
- Dependent Test – You must claim the child as a dependent on your federal tax return.
- Citizenship Test – To meet the citizenship test, the child must be a U.S. citizen, U.S. national, or U.S. resident alien.
- Residence Test – The child must have lived with you for more than half of 2009. There are some exceptions to the residence test, which can be found in IRS Publication 972, Child Tax Credit.
- Limitations – The credit is limited if your modified adjusted gross income is above a certain amount. The amount at which this phase-out begins varies depending on your filing status. For married taxpayers filing a joint return, the phase-out begins at $110,000. For married taxpayers filing a separate return, it begins at $55,000. For all other taxpayers, the phase-out begins at $75,000. In addition, the Child Tax Credit is generally limited by the amount of the income tax you owe as well as any alternative minimum tax you owe.
- Additional Child tax Credit – If the amount of your Child Tax Credit is greater than the amount of income tax you owe, you may be able to claim the Additional Child Tax Credit.
For more information, see IRS Publication 972, Child Tax Credit, available at the IRS.gov or by calling 800-TAX-FORM (800-829-3676).
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