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Tax Tips | 7 Things You Need to Know About the Government Retiree Credit
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7 Things You Need to Know About the Government Retiree Credit
February 4, 2010
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 from the Internal Revenue Service (IRS) 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.
Links on IRS.gov:
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Overview - CSRS
