Military Families Receive Recovery Rebate Break

The 2008 Heroes Act includes several benefits for military personnel. The Act was signed into law the last week of May, so we will include a summary of the provisions affecting individuals and small businesses in the next bulletin.

However, there is one new benefit that affects tax rebates currently being distributed by the IRS. Prior to the passage of the new law, a U.S. Armed Forces member who is married to a foreign spouse who was ineligible for a Social Security number would not receive a rebate credit if the couple filed a joint return.

The new 2008 Heroes Act provides that the identification number requirement doesn't apply to a joint return where at least one spouse was a member of the U.S. Armed Forces at any time during the tax year.

For couples who have already filed a 2007 return and who qualify for a rebate as a result of the new provision, IRS will either send the rebate automatically or provide a procedure by which taxpayers can notify IRS that they qualify.

Presumably, for those who have yet to file for 2007, IRS will explain what special notations (if any) need to be made on the return to alert the IRS that one spouse is a U.S. Armed Forces member.
Even if a couple doesn't receive an advance rebate during 2008, they can still claim the credit (if they qualify) on the 2008 return that they file in 2009.

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