I've done a tax estimator on H&R block's site and done my EZ form (everything short of submitting it) on Turbotax. I'm a single E-6 with no outside income or state tax. It appears that they are taking the $600 stimulus check out of my return. I've had no drastic change in income or filing status over the past few years and know approximately what I get back each year. When I do the calculator without claiming I received the stimulus, it's around what I would expect. When I claim I received the check (which I did), my return reduces by $600 to the dollar. Was the stimulus some kind of advance payment? I'm no financial whiz, but I did some reading about it on the IRS site back before the checks were cut and don't recall it being advertised as an early payment. Anyone have any insight?

The stimulus package we received from uncle sam was a advancement on the tax return we would have filed for by april 15th this year. so yeah you are correct by that statement. keep in mind the govn is trying to do this again with another stimulus this year. basically what it is the money we all received was an advancement on our return. it was supposed to make us spend the money right then to help out the economy but we all know that didnt work out that great. my wife and I got 1200 back plus 600 for our children and we now are getting 1800 less this return than what we would have gotten for our april 15th filing. i hope that explains it!

The paperwork I recieved says "You will not be required to report the amount of your stimulus payment as taxable income on your 2008 federal income tax return".

Well, all of the calculators and the tax prep programs are asking specifically if you received it, forcing you to enter an amount or check a box stating you didn't receive it. It seems to me checking "no" would constitute fraud. It's not reporting it as taxable income, because that would mean you pay a percentage of what you received as tax. This is taking the entire dollar amount off the top. I've been reading back through the IRS news releases on IRS.gov and they all talk about who qualifies and how to get it, but there's no mention of garnishing the 2008 return. Maybe I was naive to think it was "free money", but I can't help but feel a little bamboozled here. Given all of the facts and an option to decline up front, I would have declined. Unless I'm completely misunderstanding the situation, in which case I'd love to be enlightened.

quote:

The paperwork I recieved says "You will not be required to report the amount of your stimulus payment as taxable income on your 2008 federal income tax return".

It's not taxable income, all they did was front you some cash from your 2008 tax refunds. I'd be curious now to see if anyone who did receive it are now having to pay because of it.

Speaking of the Stimulus Payment....

Economic Stimulus Payment

This year, taxpayers will receive an Economic Stimulus Payment. This is a very exciting new program that I will explain using the Q and A format:

"Q. What is an Economic Stimulus Payment?
"A. It is money that the federal government will send to taxpayers.

"Q. Where will the government get this money?
"A. From taxpayers.

"Q. So the government is giving me back my own money?
"A. Only a smidgen.

"Q. What is the purpose of this payment?
"A. The plan is that you will use the money to purchase a high-definition TV set, thus stimulating the economy.

"Q. But isn't that stimulating the economy of China?
"A. Shut up."


Below is some helpful advice on how to best help the US economy by spending your stimulus check wisely:

If you spend that money at Wal-Mart, all the money will go to China.

If you spend it on gasoline it will go to the Arabs.

If you purchase a computer it will go to India.

If you purchase fruit and vegetables it will go to Mexico, Honduras, and Guatemala
(unless you buy organic).

If you buy a car it will go to Japan.


If you purchase useless crap it will go to Taiwan.

And none of it will help the American economy.

We need to keep that money here in America. You can keep the money in America by spending it at yard sales, going to a baseball game, or spend it on prostitutes, beer (domestic ONLY), or tattoos, since those are the only businesses still in the US.

Wray...

Awesome, Wray so true...

quote:

Originally posted by player05:
The stimulus package we received from uncle sam was a advancement on the tax return we would have filed for by april 15th this year. so yeah you are correct by that statement. keep in mind the govn is trying to do this again with another stimulus this year. basically what it is the money we all received was an advancement on our return. it was supposed to make us spend the money right then to help out the economy but we all know that didnt work out that great. my wife and I got 1200 back plus 600 for our children and we now are getting 1800 less this return than what we would have gotten for our april 15th filing. i hope that explains it!

They are not reducing out of your rebate. If you put $0 paid to you for the stimulus in any program---the refund amount goes up b/c they are simply giving it to you (assuming you have not received it) and adding it on your 2008 return.

Hopefully someone with expertise will clear this up. In the meantime:

1. The FAQs on the IRS web site state in part: "What is it? It's an economic stimulus payment that more than 124 million households will receive. It's not taxable, and it won't reduce your 2007 or 2008 refund or increase the amount you owe when you file your 2008 return."

2. The IRS 2008 Form 1040 instructions state that there is a cousin to the economic stimulus called a "Recovery Rebate Credit"--"This credit is figured like last year's economic stimulus payment, except that your 2008 tax information is used to figure this credit. Your 2007 tax information was used to figure your economic stimulus payment. The maximum credit is $600 ($1,200 if married filing jointly) plus $300 for each qualifying child. You may be able to take this credit only if:

*You did not get an economic stimulus payment, or
*Your economic stimulus payment was less than $600 ($1,200 if married filing jointly for 2007), plus $300 for each qualifying child you had for 2008."

Based on the above sketchy data I suspect two things:

1. Most of us who use tax return software will see our tax liability go up by that amount since it starts out assuming we are entitled to the Recovery Rebate Credit, then discovers--what a shock!--that we're not because we already took the stimulus check. You'd have to manually check your F*A*G*I against the tax table to be sure.

2. If a child joined your household in 2008, you should look closely to see if you are entitled to another $300.

Wray, I think we owe you a standing ovation

Unfortunately, many of us don't get any of this $, so I guess I'll buy whatever and the hell to where it goes. Now the new Administration's economic stimulus plan includes many tax brakes to mostly (if not only) those who don't pay taxes or pay the less.

This is nothing new really. Look up the word REBATE in a dictionary. The REBATE was an ADVANCE rebate, but just a rebate. Same the last time this did this.

YNgirl is right. It was not a REBATE. It was a PAYMENT. Go to the IRS and check for yourself. I just did my taxes this morning and it clearly stated that the amount put in did not increase tax liability but was only entered to ensure payment was received.

You don't have to pay taxes on the money you received and it wasn't a prepayment of your 2008 return. It was additional money sent out to inject the economy with more spending.

I don't agree with it or any goverment bailouts but it is what it is.

quote:

Originally posted by Dolphindriver:
You don't have to pay taxes on the money you received and it wasn't a prepayment of your 2008 return. It was additional money sent out to inject the economy with more spending.

Respectfully disagree Dolphindriver. Just like Alohastyle, I computed my 08 taxes using Turbotax with and without entering the rebate amount. With the rebate entered, my refund was reduced by the exact amount of the check.

Of course the numbers changed by the exact amount. When someone says they didn't receive the payment, the program or your accountant adds that much to your refund so you are paid what everyone else received last summer. If you say you received it and put in that amount, you don't get it. You will not get the money twice.

Let's say you normally complete your 2008 return and you over paid your taxes by $1,100. You would get $1,100 back in a refund. If you then say "no" I didn't get my stimulus check last summer, then you will get your stimulus check tacked onto that.

Your refund wasn't reduced by the amount of the check, you simply didn't get a second stimulus check added to your refund.

These payments were added to the 2008 returns because THOUSANDS and thousands of people did not receive their stimulus checks due to multiple circumstances over the summer and this was a way to get that money to people who had not yet received it.

Dolphindriver - I went over my taxes again, and you are spot on. I stand corrected.