Seven Things You Need to Know About the Government Retiree
Credit
IRS Tax Tip 2010-20
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
:
1. 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.
2. Recipients of the Making Work Pay Credit will have that credit reduced by
any Government Retiree Credit they receive.
3. The credit is $250 for individuals and $500 if married filing jointly and
both you and your spouse receive a qualifying pension or annuity.
4. 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.
5. You cannot take the credit if you received a $250 economic recovery
payment in 2009.
6. This is a refundable credit, which means it may give you a refund even if
you had no tax withheld from your pension.
7. 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.
