Special Credit for Certain Government Retirees One-time refundable credit of $250 was available for certain government retirees who receive a pension from work and not covered by Social Security Credit must be claimed on 2009 return and is a reduction to any Making Work Pay tax credit

Economic Recovery Payments Payment of $250 made to recipients of social security benefits, supplemental security income, railroad retirement benefits, and veterans disability compensation or pension benefits Eligible individuals received the payment automatically; did not have to apply for the payment Only one economic recovery payment per person; this payment reduces the amount of making work pay credit Payment is not included in taxable income Note, if correct amount is not entered on schedule M (Making Work Pay and Government Retiree Credit) it will not reject in TaxWise. The payment will be matched with IRS records and may generate a math error notice if the amount is incorrect.

Unemployment Compensation The first $2,400 of unemployment compensation is excluded from income in 2009

American Opportunity Credit For tax years beginning in 2009, taxpayers can claim a credit up to $2,500 per student; new credit modifies the existing Hope and Lifetime learning credits for tax years 2009 and 2010 Credit now includes required course materials in the list of qualifying expenses; also allows credit to be claimed for four post-secondary education years instead of two