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Five Tips for Avoiding Refund Delays Relating to Your Economic Recovery Payment

Notice: Historical Content

This is an archival or historical document and may not reflect current law, policies or procedures.

IRS Tax Tip 2010-21

The $250 Economic Recovery Payments that were issued in 2009 by the Social Security Administration, Department of Veterans Affairs and Railroad Retirement Board must be included when claiming the Making Work Pay Tax Credit on 2009 tax returns. Many people who worked during 2009 and also received a $250 Economic Recovery Payment in 2009 are slowing down their tax refunds by not properly including the payments when claiming the Making Work Pay Tax Credit.

Here are five tips from the IRS that will help you avoid these refund delays:

  1. If you worked during 2009, you may be eligible to claim the Making Work Pay Tax Credit that was established by the American Recovery and Reinvestment Act of 2009 and is worth up to $400 for individuals and $800 for married couples.
     
  2. 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.
     
  3. Taxpayers with earned income should claim the credit by attaching Schedule M, Making Work Pay and Government Retiree Credits to their 2009 income tax return.
     
  4. To help avoid delays when you claim the credit, make sure you properly report your Economic Recovery Payment on IRS Schedule M.
     
  5. If you can't recall whether you received the $250 payment you should verify that information before preparing and filing your tax return and claiming the Making Work Pay Tax Credit. To verify, you may call the automated telephone service at 1-866-234-2942 and select Option 1. Starting March 23, 2010, you may use the Did I Receive a 2009 Economic Recovery Payment? feature on IRS.gov to verify whether the payment was received. You can also verify your Economic Recovery Payment by contacting the appropriate agency.

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:

The American Recovery and Reinvestment Act of 2009: Information Center

 

Additional Contact Information:

Social Security Administration - Toll free Number: 800-772-1213

Department of Veterans Affairs - Toll Free Number: 800-827-1000

Railroad Retirement Board


 

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