Recovery Rebate Credit Calculator from IRS will help you to calculate the exact recovery rebate credit- a one-time benefit for those people who did not receive the full economic stimulus payment last year and whose situation may have changed to make them eligible for some or the entire unpaid portion. Usually, a credit adds to the amount of your tax refund or lowers the amount of taxes owed that's why your received amount for the recovery rebate credit will be consisted as part of your refund, as shown on your tax return. Here the information is mentioned about IRS Recovery Rebate Credit Calculator.
The Calculator will ask you a series of questions with the intention to determine if you qualify for this credit. Only enough information will be asked to determine how much credit you may claim, if any.
Before You Start:
You should have your 2008 Form 1040, Form 1040A, or Form 1040EZ, with everything completed except for this credit. Enter the information in one of these forms, which are given above. You will be required to know what filing status you claimed on your 2007 income tax return last year (married filing jointly, or some other filing status, such as single, or head of household).
Know the Amount of Your Economic Stimulus Payment (ESP):
The amount of credit you may now claim (if any) will depend on how much ESP you received; since the ESP was an advance payment of the Recovery Rebate Credit.
- If you do not know or have a record of this amount, you can look it up using our How Much Was My 2008 Stimulus Payment? Tool.
- So, if you switched your filing status to or from Married Filing Jointly between 2007 and 2008 (or you are filing with a different spouse in 2008), be sure to enter only the portion paid to each spouse filing the 2008 return.
- If you are filing jointly this year, but your current spouse did not file jointly with you last year, then you will need to know your current spouse's ESP as well as your own. In that case, use the How Much Was My 2008 Stimulus Payment? tool. tool twice to retrieve this amount for yourself and your spouse separately.
- If you were paid an ESP that was reduced or eliminated by the IRS in order to pay for back taxes, etc., then the amount to enter into the calculator is the amount before that reduction.
- Your ESP was based on your 2007 filing status, and the Recovery Rebate Credit is based on your 2008 filing status. Each spouse who filed jointly in 2007 is considered to have received half of the ESP.
For more information, see here.
Tags: Income Tax, Calculator, IRS, Forms, payment