If you didn't get last year's tax rebate, you may be able to now
— -- If you lost your job last year, you could probably use some extra cash. Here's a source of money you may have overlooked: last year's tax rebate.
In 2008, the IRS sent more than 119 million taxpayers rebate checks of $600 per person, or $1,200 for couples. Parents received an additional $300 for each dependent child younger than 17.
The checks were part of an economic stimulus package enacted in February 2008. But many taxpayers didn't receive a check, or received a reduced amount.
One reason was the income cutoff: The rebates were phased out for single taxpayers with 2007 adjusted gross income of more than $75,000, and married couples with AGI of more than $150,000.
Congress based the rebates on 2007 tax returns to get the money in taxpayers' hands more quickly, says John W. Roth, senior federal tax analyst for tax publisher CCH.
But the rebate was really a credit against 2008 taxes. As a result, taxpayers who didn't receive a rebate in 2007 may be able to claim it when they file their 2008 tax returns. Likewise, taxpayers who received a reduced rebate may be able to claim the balance.
The IRS estimates that less than 3% of taxpayers will be eligible to claim the credit — now known as the recovery rebate credit — on their 2008 tax returns. But given the sharp rise in unemployment in the fourth quarter, the number of eligible taxpayers could be higher, Roth says.
Taxpayers whose income declined last year aren't the only individuals who may be eligible for a recovery rebate credit. You may also qualify if:
•You had a child last year, or adopted one younger than 17. If you claim the child as a dependent on your 2008 tax return, you could qualify for an additional $300.
•You're a retiree or veteran who failed to claim your rebate last year. Retirees who received at least $3,000 in Social Security, veterans benefits or Railroad Retirement benefits in 2007 were eligible for a $300 tax rebate, or $600 for married couples. To get their payments, though, seniors had to file a 2007 tax return, even if they didn't owe federal taxes.
