Credit to Government Retirees & Estimated Taxes

Here’s the latest in our series of tips about what’s new in 2009 with estimated taxes. Today’s pertains to certain government retirees.

According to the IRS, if you are a government retiree and you did not receive an economic recovery payment as a recipient of social security, supplemental social security, railroad retirement, and veterans disability compensation or pension benefits, you are allowed a credit of $250 ($500 if both you and your spouse are government retirees and you file jointly). The credit is refundable.