Certain government retirees who receive a government pension or annuity payment in 2009 may be eligible for the Government Retiree Credit. The American Recovery and Reinvestment Act of 2009 provides this one-time credit of $250 for certain federal and state pensioners.
Here are seven things the IRS wants you to know about the Government Retiree Credit:
- You can take this credit if you receive a pension or annuity payment in 2009 for service performed for the U.S. Government or any U.S. state or local government and the service was not covered by social security.
- Recipients of the Making Work Pay Credit will have that credit reduced by any Government Retiree Credit they receive.
- The credit is $250 for individuals and $500 if married filing jointly and both you and your spouse receive a qualifying pension or annuity.
- You must have a valid social security number to claim the credit. If married filing jointly, both spouses must have a valid social security number to each claim the $250 credit.
- You cannot take the credit if you received a $250 economic recovery payment in 2009.
- This is a refundable credit, which means it may give you a refund even if you had no tax withheld from your pension.
- To claim the credit, you must complete Schedule M, Making Work Pay and Government Retiree Credits, and attach it to your Form 1040A or 1040.