If you received a one-time Economic Recovery Payment in 2009 and you worked during the year, it might affect your federal tax return

If you received a one-time payment but do not report it on your federal return, it will slow your tax refund. If you are not sure whether you received the $250 Economic Recovery Payment, you can call us, toll-free, at 1-800-772-1213 (TTY 1-800-325-0778).

The Making Work Pay Tax Credit is a new credit established by the American Recovery and Reinvestment Act of 2009 and it’s worth up to $400 for individuals and $800 for married couples. Millions of hardworking Americans have received the benefit of this credit every pay period through reduced tax withholding.

Wage earners and self-employed individuals can claim the credit on their 2009 federal income tax return by attaching Schedule M , Making Work Pay and Government Retiree Credits.  However, anyone who also receives Social Security, Veteran’s or Railroad Retirement benefits, as well as certain government retirement benefits, must reduce the credit they claim by the amount of any Economic Recovery Payment that was received in 2009.   

You can find more information about the Economic Recovery Payment and the Making Work Pay Tax Credit at IRS.gov/recovery. You can get Schedule M and the related instructions online at IRS.gov. To receive a copy of the form by mail, call IRS, toll free, at 1-800-829-3676 (TTY 1-800-829-4059).