Federal Income Tax Guide - 2008.pdf

To be eligible for the $300 stimulus payment, Peace Corps Volunteers (PCVs) must report their taxable income as wages, not other income, and enter the credit amount on the Recovery Rebate Credit line of their tax form. Taxable income includes readjustment allowance, taxable portion of living allowance, leave allowance, and special leave allowance. PCVs must have at least $3,000 of qualifying income to get the minimum credit of $300. The readjustment amount for PCVs serving the full year is $2,700, and adding taxable allowances may put them over the $3,000 minimum. PCVs who did not receive the credit or did not receive all they are eligible for can get the money when filing their 2008 tax return. They must calculate and enter the credit amount on line 9 of the 1040-EZ, line 42 of the 1040A, or line 70 of the 1040. If PCVs have questions, they can contact [email protected]. PCVs with total income greater than the listed amounts must file a tax return, and they should retain all W-2 forms and the tax guide for their records. They should also have the necessary documents, including the IRS Form 1040 and Instruction Booklet, Peace Corps W-2 Form, and 2008 Taxable Allowances Guide, to complete their tax filing. PCVs can determine their taxable wages for 2008 by following the steps outlined in the guide, which includes calculating the taxable portion of their living allowance and leaving allowance. They should enter their total wages on line 1 of the 1040-EZ or line 7 of the 1040A or 1040 and enclose all W-2 forms when mailing their tax return to the IRS service center. The tax return must be filed by April 15, 2009, or June 15, 2009, if the PCV is outside the US, with a note attached stating their residence or travel status.