The Government Retiree Tax Credit
If you are a government retiree and received a pension during 2009, you could be eligible to the Government Retiree Tax Credit. An extra $250 in tax credits is available to federal, state and local government retirees. This credit was created with the ARRA bill passed early in the current presidential administration’s tenure.
If you have a pension or annuity outside of the social security system, this credit is available to you. This credit and the Making Work Pay credit cannot both be claimed. Therefore your Making Work Pay credit is reduced if you worked while receiving the Government Retiree Credit. Couples can get a full $500 if both spouses qualify.
The really good news is, this is a refundable credit which means you can get the refund even if you have not paid taxes into the system. Complete the Schedule M to claim the tax credit when you file your taxes this year.
- Home Tax Credit Going Away (2010tax.org)
- President Obama on the Family Tax Credit (2010tax.org)
- Green Tax Deductions (2010taxes.org)