what is the impact of the 2008 stimulus check towards tax filing?
what is the impact of the 2008 stimulus check towards income tax filing? i just did a quick estimator/calculator at HR Block online to see how our income tax file would look like and it says we owed $xxxxx amount to the IRS.. does this mean we are basically paying back the stimulus check back to the IRS ?
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August 24th, 2010 at 11:52 am
there’s no impact whatsoever no you don’t pay it back.
if you qualify for more this year based on your income in 2008 or if you claim kids that you didn’t last year they’ll deduct what you got last year from what you’re eligible for this year.
August 24th, 2010 at 12:42 pm
You shouldn’t have to pay back the stimulus check. That check was basically a refund of your federal income tax from 2007. It should not be considered income on your 2008 return.
August 24th, 2010 at 1:14 pm
ACTUALLY YES!!! when asked to enter the amount you recieved from 2008 stimulus…and then you proceed…you will notice that amount is deducted from your return. Try it out if you dont believe me. here is what you will get
This is what i got when i entered in that recieved 600..then my return was decreased by 600
“Your recovery rebate credit is $0. Your credit is reduced by any economic stimulus payment you received in 2008. ”
If i changed that number to 0 i got this
“Your recovery rebate credit is $600. Your credit is reduced by any economic stimulus payment you received in 2008″
and my return increased by 600$
August 24th, 2010 at 2:10 pm
No, it doesn’t affect your 2008 refund, which is whatever it would have been if there had been no stimulus package or checks. The exception is if you didn’t qualify last year, but qualify based on your 2008 return, you’d receive the stimulus payment added to your refund.
Unfortunately, many of the tax software designers took a short cut and calculated the stimulus into your refund for 2008 automatically, then have you subtract it back out if you got it last year. This is causing massive confusion among people who think it’s being subtracted from their refunds – it’s only being subtracted if it shouldn’t have been there in the first place this year since you already got it last year.
August 24th, 2010 at 2:28 pm
What the tax rebate wasn’t:
The tax rebate payment was not interest, it was not income, it was not a dividend. Pure and simple, the tax rebate payment was an advance credit for tax year 2008 and it will be calculated on your 2008 return when you file.It was an advance credit that you received early; if you’ve already received the full amount to which you’re entitled, you won’t receive any further credit.
August 24th, 2010 at 3:07 pm
Well, I have no answer because I too am confused.
I just filed my taxes and I was getting 1295.00 back, until I answered the question did you get a stimulus check, if so enter the amount.
I entered in the $900.00 that I received and my refund fell to 395.00.
I tried this on Turbo Tax, Tax Cut, and another site and they all showed that my refund decreased exactly $900.00 when I entered in the stimulus check information.
Any advice?
I file head of household with one dependent.
Makes no sense to me. Seems like I am getting penalized.