I’ve received a lot of inquiries related to the Making Work Pay Credit and the Economic Recovery Payment. You cannot receive the maximum credit for both. If you are disabled or retired and received the Economic Recovery Payment, you must report it on your Schedule M when claiming the Making Work Pay Credit. It is not taxable: you just can’t receive both benefits.
If you fail to report it, the IRS will kick back your return. However, since checks related to the Economic Recovery Payment were mailed out almost a year ago, many folks can’t remember whether they received the credit. For months now, the only way that you could find out whether you received the credit was to contact the agency who mailed the check directly. Thankfully, that has changed. You can now check online on the IRS web site – the ERP tool is here. All you need is your Social Security number, your date of birth and your zip code. I checked it out earlier today – it’s working! Hopefully, that will help out some taxpayers this season.
Of course, it would have been even more helpful if the tool had been in place sooner than a month before tax season is over… But hey, beggars can’t be choosers, right?