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How Will The 2008 Tax Rebate Affect My 2008 Tax Return?A Tax Fact from The Tax Institute at H&R Block Beginning in May 2008, approximately 130 million Americans started receiving tax rebate payments worth up to $600 for individuals and up to $1,200 for couples filing joint returns, as part of the Economic Stimulus Act of 2008. Additionally, those who paid no income taxes but earned at least $3,000, or received at least $3,000 of Social Security, Railroad Retirement and Disabled Veteran benefits, received a $300 (or $600 for couples filing joint returns) stimulus payment as well, provided they filed a 2007 federal tax return. Individuals who were eligible for at least the base amount of the tax rebate payment (a $300 or $600 payment) also received an additional $300 for each qualifying child. So now that you’re getting ready to file your 2008 federal tax return, are you wondering if or how your tax rebate payment will affect your return? The short answer is, “it won’t.” Let us explain. What the tax rebate was However, because it was based on your 2007 return, if you’re due a higher amount based on your 2008 return information, you will receive the remainder when you file your 2008 return. If you received a higher rebate payment than you should have, based on your 2008 return information, you do not have to pay back the difference. And, if you’re a parent who alternates claiming a qualifying child with another parent, and you did not receive the child-related rebate payment in 2008, you may qualify to claim the child-related credit on your 2008 return if you are claiming the child in 2008. The other parent, who may have received the child-related rebate based on his or her 2007 return, is not required to repay the child-related amount he or she received. What the tax rebate wasn’t So how will the 2008 tax rebate payment affect my 2008 return? This Tax Fact is brought to you by The Tax Institute at H&R Block. To view other helpful tax information or listen to our Tax Fact podcasts, visit www.digits.hrblock.com As always . . . everyone’s tax situation is different, so be sure to consult a tax professional or financial advisor before making important financial decisions. This Tax Fact is for educational purposes only and is not intended to be a substitute for seeking personalized, professional advice, nor is it intended to be used to avoid IRS penalties.
Views: 13560 | Comments: 108
berniemac ---
I am assuming you are referring to your stimulus payment from last year. If you did not receive the full amount you can fill out a Recovery Rebate Credit Worksheet and the amount due you will need to be reported on Line 70 of your 1040. If you do not fill out this worksheet you do not need to report the amount you received on your 1040. -Stephanie, H&R Block TaxPro  StephanieV , 10 Apr 2009 21:05:17 GMT jarosick-
As part of ARRA, a one-time payment of $250 will be available to retirees and disabled individuals receiving certain Social Security, Supplemental Security Income, Railroad Retirement benefits, and veterans benefits. This check will automatically be paid to the appropriate individuals by the government. Retired government workers who do not receive Social Security benefits will be eligible to claim a $250 tax credit on their 2009 tax return. Individuals receiving a qualifying retirement or disability benefit at any time during the period from November 1, 2008 through January 31, 2009 will receive a payment.
-AshleyV, H & R Block TaxPro AshleyV , 10 Apr 2009 20:28:08 GMT sara mundt-
You would either have to call the IRS and see if they have received your return or go to the H & R Block(or call)office that you had your second look done at and ask them if they sent it.
-AshleyV, H & R Block TaxPro AshleyV , 9 Apr 2009 19:44:28 GMT Jonathan Cooksey-
You can either obtain your return from last year from the IRS or you would have to go to the location you went to last year and they should have it on file.
-AshleyV, H & R Block TaxPro AshleyV , 9 Apr 2009 19:37:39 GMT I need to find my AGI from last year. I filed with h&r block is there anyway I can do this online? Jonathan Cooksey , 1 Apr 2009 19:31:55 GMT i did a 2nd chance with h and r block and im suppose to be getting some money back and i'd like to know if it was sent yet? sara mundt , 31 Mar 2009 14:29:43 GMT iam waitting my texas i have six weeks to no recived nothing luis , 29 Mar 2009 20:59:57 GMT i received a 600 dollar rebate filing joiuntly.i collect social security and my wife collets social security disability.i also work.and pay taxes.i did not earn enough so i got back all i paid innam i still eligible for more money. jarosick , 27 Mar 2009 21:57:31 GMT I'm going to have to send a payment this year,fogot to change my W-4 when my daughter moved out,how does the $600 I received what I have to pay them.
Berniemac berniemac , 25 Mar 2009 09:16:47 GMT WRONG - the 2008 tax return is AFFECTED in STATE of OREGON. Oregon has elected to TAX the stimulus rebate $600 per individual. How? by reducing Fed. Tax Liab. amount subtracted from Fed. AGI (Form 40, line 13). The $600 not subtracted from Fed AGI, constitutes a taxation of the $600 by state of OREGON. Nice work....nice stimulus (bonus) for the Oregon Dept of Revenue coffers !!! rose.entered , 24 Mar 2009 18:34:03 GMT I received $600 even though I'm married filing jointly.Do I have to figure in the $600 om my tax form(using 1040A) in the intreste/dividend line or do I do nothing with it on the form.
Thanks in advance
Berniemac berniemac , 24 Mar 2009 18:32:30 GMT Someone please help me understand. Please. I submitted my paperwork on TurboTax (TT), and it stated I would be getting $296 from Federal. Four hours later, it was rejected by the IRS stating there was an error. TT walked me back through my form and where it asks if I received a rebate in 2008, I checked "yes". It asks how much did I receive and I said "300.00" which is what I received. Well, that was the error. I found out that even though I only received 300.00, I was supposed to enter $600.00 (why I do not understand). Well, when I entered the $600.00, TT said I OWED THE IRS $4.00!!!!!. I TRULY, TRULY DO NOT UNDERSTAND. First, I didn't get the full $600.00 every single person I know received and now they are taking BASICALLY $300 more dollars. Why? I am divorced with a 17 and 18 year old. teeshe1 , 24 Mar 2009 01:06:48 GMT i just found out that my tax refund will be withheld. H&R BLock was suppose to be paid from the return. how will they get paid now? douglasdelights , 23 Mar 2009 00:08:28 GMT TurboTax 2008 is deducting any rebate$ input amount.
PLZ EXPLAIN! JAMES James , 22 Mar 2009 23:58:46 GMT IS THERE A NUMBER @ THE IRS ONE CAN CALL TO CHECK IF YOUR REFUND WILL BE OFFSET? CHOLTZ , 18 Mar 2009 21:18:07 GMT I was woundering when i went for taxes at hand r block they said we would be getting the rest of the stimulus we didn't receive in a check, due to haveing rac. everywhere i have read said there will be no checks sent out.. why were we told this? pam , 18 Mar 2009 21:07:18 GMT thanks kzgardner , 12 Mar 2009 23:25:58 GMT i filed this year and was to recieve more from the check i got in 2008
kzgardner , 12 Mar 2009 23:25:29 GMT gworks69 ---
Are you referring to the 2008 credit most people received last year or are you referring to the new stimulus package that was passed this year? -Stephanie, H&R Block TaxPro StephanieV , 9 Mar 2009 15:48:26 GMT slipjiggs ---
It would depend on your income during 2008. There is a worksheet on the IRS website that you can use to help you figure out exactly what your credit should be. Here is the link http://www.irs.gov/pub/irs-pdf/i1040gi.pdf . The worksheet is on page 62 and 63. -Stephanie, H&R Block TaxPro StephanieV , 9 Mar 2009 15:45:27 GMT webien73 ---
Im not sure which stimulus package you are referring to. Are you asking about the credit we received in the mail last year or the new one that was recently approved. -Stephanie, H&R Block TaxPro StephanieV , 9 Mar 2009 15:18:18 GMT weatherwoman ---
You would need to file an amended return with the correct information. -Stephanie, H&R Block TaxPro StephanieV , 9 Mar 2009 15:06:42 GMT fbahuff ---
Im sorry that you were misinformed by your tax preparer. If you did not receive the full credit in the mail last year you can recover the rest of it on your 2008 taxes. This will be included in your 2008 refund as the information was reported on your 2008 taxes. -Stephanie, H&R Block TaxPro StephanieV , 9 Mar 2009 15:06:08 GMT fbahuff ---
Im sorry that you were misinformed by your tax preparer. If you did not receive the full credit in the mail last year you can recover the rest of it on your 2008 taxes. This will be included in your 2008 refund as the information was reported on your 2008 taxes. -Stephanie, H&R Block TaxPro StephanieV , 9 Mar 2009 14:34:47 GMT fbahuff ---
Im sorry that you were misinformed by your tax preparer. If you did not receive the full credit in the mail last year you can recover the rest of it on your 2008 taxes. This will be included in your 2008 refund as the information was reported on your 2008 taxes. -Stephanie, H&R Block TaxPro StephanieV , 9 Mar 2009 14:16:49 GMT How do we deal with this in Oregon using TaxCut? According to this website ( http://www.oregon.gov/DOR/PERTAX/faq-fedrebate.shtml ), the rebate does affect our Oregon taxes. I can't figure out how to deal with this in the program. gathda , 8 Mar 2009 03:18:49 GMT Did not seem to help the economy Lloyd B. Steele , 6 Mar 2009 16:43:58 GMT TYING TO FIND HE STATUS OF MY 2008 TAX RETURN MICELLE@HOTMAL.LIVE , 6 Mar 2009 14:19:51 GMT For all who is confused....The recovery rebate credit shown on the 08 return is a way for americans to "re-capture" any money from the stimulus pkg that they did not recieve during the year that was "owed" to them. EX: Sally Sue recvd $1200 in the mail in July 08, and had a child in December 08, she will be due $300 more on the recovery rebate credit. Hince the word RECOVERY!...However if you recvd more than due you do NOT have to pay that back...This years tax return is your last chance to bank on the stimulus pkg.Further more the money in question is in no way shape or form taxable and it does NOT reduce any refund or tax liablitlty! laceygrubb , 3 Mar 2009 20:21:34 GMT i want to know if your not working sence you filied your taxt's how will i get my rebate back????? gworks69 , 2 Mar 2009 21:25:40 GMT so confused. So I received my stimulus check in the amount of $300. And got a $300 credit on this years tax return. But what about my child? I have always claimed him and I never saw a dime. I thought it was $600 per adult and $300 per dependent. Has anyone else had this problem? slipjiggs , 28 Feb 2009 19:09:59 GMT iam confused does anyone know how this recovery stimulus thing works? ive already did my taxs before it was told about the stimulus do i go back in or what??? webjen73 , 28 Feb 2009 18:36:06 GMT ok, What happens if you thought you didn't get the full rebate you were suppose to get and said so on your tax filing, then find out later you did get the proper amount. Will you then owe the IRS for the amount you reported that you did not get. weatherwoman , 25 Feb 2009 16:04:53 GMT H&R Block is the worst tax office in the business steve , 20 Feb 2009 02:16:20 GMT Ok guys here it is black and white!!! We were not given anything by anyone. Normally we all get our refunds in Feb or March, some time in tax season,however we just got what we would have gotten early. No more and no less. The Govt was very misleading but if you were smart when you called the bank and I told you how it was working you wouldnt have said," I dont think you know what you are talking about I will ask my tax pro!" Should've listened all military personnel and your pretty little wives too!!! Pensacolian , 18 Feb 2009 23:54:35 GMT Okay, add me to the confusion... When doing our taxes, our H&R preparer said that we are owed $600 through the recovery stimulus because we didn't get anything for me last year-- just hubby and kids. Our preparer said that would come separate around the first week of March. I'm reading now that it was included in our refund. So which is it? Did it come in our refund or will I get it separate? fbahuff , 18 Feb 2009 22:59:41 GMT Obviously there is confusion, and like me, absolute frustration at our government for "attempting" to "help" those in need. It's basic 101: Never use FREE when referring to money you are giving to the masses. "It's FREE money, go spend it to help the economy". Completely misleading.
Forget what it was supposed to do and all the terminology involved. Like everyone else, TaxAct is showing my refund amount decreasing as I received the $1200 stimulus payment. Now, I'm showing where I OWE the government as a result of this decrease. Not a fair trade. IRS Q&A on their website states that the stimulus payment will NOT reduce your refund or increase the amount you owe when you file your 08 return. FALSE: We've all seen this already, it DOES reduce your refund amount.
If it were not supposed to reduce the refund amount, when we enter the stimulus payment into the software, our refund should then show no change. At least this is the conception that us Americans have thus far. Why would the software assume you did not receive the stimulus payment when the majority did receive it, only confusing us all more? compltlyjaded , 18 Feb 2009 15:34:47 GMT i just want to see my info bootygirl , 18 Feb 2009 10:20:53 GMT hey there when we get i rebate money in the mail tell me then a-oky with you then a-oky this brandy barnett redd1982 , 17 Feb 2009 15:25:36 GMT townsend5 - The 2008 stimulus payment cannot reduce your refund this year when you file your 2008 federal return; it can only increase it if you are eligible to receive more. The credit did not exist prior to the 2008 federal return. Instead of having you wait until 2009 (when you file your 2008 federal return) you received the credit "early" or as an advance against your 2008 return. But the rebate you received last year cannot reduce your 2008 refund, nor can it increase a Balance Due.
David James
H&R Block TaxCut David James , 15 Feb 2009 19:57:29 GMT My husband and I got the stimulus payment of $1200.00. We did file our taxes and it was showing our refund would be $1278.00. Then when we got to the section of adding what our stimulus payment was for our 2007 taxes, hit next and our refund dropped to $678.00. So tax rebate, credit what ever you want to call it, is all but pure misconcecption for all of us. It clearly states in the above topic, How will the 2008 Tax Rebate Affect My 2008 Tax Return, in the last paragraph, first sentence YOUR 2008 TAX REBATE PAYEMNT WILL NOT DECREASE YOUR REFUND WHEN YOU FILE YOUR 2008 TAXES (IS A FLAT OUT LIE). It's too bad we couldn't be told as American's what the real truth was. townsend5 , 15 Feb 2009 02:08:12 GMT WHen I went and did my taxes it said I would be getting $300. more, but I didnt get it when I got my refund back. When will I get it? Anyone know? PeggyJo , 13 Feb 2009 00:43:36 GMT IT'S FREE MONEY. IT REALLY IS.
The basic problem is the use of the term, "credit." A "credit" sounds like something that you are getting NOW, that you'll have to pay for LATER--as in "credit card." As a result, MANY people have come to believe that the $600 ($1200 for couples) check they got in the summer of 2008 was just an ADVANCE on their TY2008 tax refund. They are upset now, saying that if they had known that the stimulus check was just an advance on their refund, and not "free money," then they wouldn't have spent it the way they did.
So here's the bottom: Yes, it WAS free money.
Then why did the government call the stimulus check a "tax credit?" What they meant was: "We're going to give you $600 of free money by reducing your TY2008 federal tax by $600, AND rather than make you wait until you file your TY2008 return to get the benefit of this, we're going to send you a check for $600 RIGHT NOW (i.e. in the summer of 2008)." Moreover, to avoid any hassle, it was free money even if it turns out that you wouldn't have been due a refund on your TY2008 return; even if it turns out that you OWE tax, that $600 was free money which you do not have to give back.
Many TaxCut users are getting confused because, when the program asks if they got a stimulus check and they enter the $600, they see their refund drop by $600 (in that little box that shows a running calculation of the refund). This gives the impression that the $600 was just an ADVANCE on their refund. NOT SO.
The key is that NOT EVERYBODY GOT A STIMULUS CHECK. The government decided who would get a check by looking at your TY2007 return. If you DIDN'T get a stimulus check, you STILL get the benefit of the tax credit--you just didn't get the money EARLY. Instead, your TY2008 tax will be reduced by $600.
Now the TaxCut program doesn't know--until it asks--whether you ALREADY got the $600 as a check back in the summer, or whether you're going to get the $600 NOW in the form of a reduction of your tax. The "default" assumption is that you DIDN'T get a check, and that therefore you have a $600 tax credit coming. Therefore, initially the calculation of your refund has that $600 tax credit built in. When you tell the program that, yes, you did get a $600 check, then it knows that you DON'T ALSO still have a $600 tax credit coming--that would be double-dipping--and therefore it reduces your refund by $600. That's all that is happening.
numbercruncher , 12 Feb 2009 20:19:11 GMT Hello everyone! I am a tax preparer/professional in Iowa. Let me add some clarity here. There are 2 very different words used in the stimulus money that was received last spring (2007)~these words are 'rebate' and 'advance'. The stimulus was not a rebate..but rather an advance on the refund that tax payers would recieve for the tax year 2008. For example..if during the tax year 2008, a tax payer was to recieve a refund of $1,200.00, instead of waiting for the refund in Feb 2008..a portion of the refund would be 'advanced' to that tax payer in the spring of 2007. So instead of getting the full $1,200.00 in Feb 2008..the tax payer got $600.00 of that refund..early (advanced) in spring of 2007, with the remainder of the $600.00 payable in Feb 2008. It was an advance and not a rebate. Lesson learned..ask a tax professional what the ramifications are when the government gives out a stimulus check. Nothing is for free..you still have to earn it..sorry. I hope this helps explain what happened. The example of the tax payer I used above still received his $1,200.00 refund..in 2 payments instead of just one. So the advance does not affect your refund for 2008..you just recieved some of it early..that's all. God Bless!
prednisonegirl , 12 Feb 2009 18:47:45 GMT janecollege ...
The 2008 rebate payment was an advance on a credit that's making it's first and only appearance on the 2008 federal return.
If you received the "advance" last year and you received all that you were eligible to receive, you won't receive it again. Because it was based on the 2007 federal return, some taxpayers are eligible to receive a rebate recovery, if they experienced life changes that are reflected on the 2008 return but not on the 2007 return. For example, you lost a job in 2008 and made less income than 2007 and this made you eligible for a rebate recovery, or you had a child in 2008 which would not have been indicated on the 2007 return.
But Jane, the rebate you received last year cannot reduce your 2008 refund; if you received it once and you received all that you were eligible to receive, you won't receive it again. If you did not, you will receive it with your 2008 refund when you file this year.
Best,
Denise Sposato, H&R Block
Denise Sposato , 9 Feb 2009 20:00:47 GMT If the stimulus package was an ADVANCE on our 2008 tax refund, why was the government saying "go out and spend it, its free money." Pretty misleading if you ask me. I can guarantee that had I known the stimulus would have reduced our 2008 refund I wouldnt have gone out and bought an unneeded flat screen tv. Way to screw us over again government. Cvett1 , 9 Feb 2009 19:54:58 GMT Cvett1 ....
The 2008 stimulus payment cannot reduce your refund this year when you file your 2008 federal return; it can only increase it if you are eligible to receive more.
The credit did not exist prior to the 2008 federal return. Instead of having you wait until 2009 (when you file your 2008 federal return) you received the credit "early" or as an advance against your 2008 return. More confusing was that the stimulus payment was based on your 2007 return (which most people filed by April 15, 2008). This is why, for some people, they may actually be eligible to receive a rebate recovery based on their 2008 return.
But the rebate you received last year cannot reduce your 2008 refund, nor can it increase a Balance Due.
Best,
Denise Sposato, H&R Block Denise Sposato , 9 Feb 2009 19:47:49 GMT If the stimulus package was an ADVANCE on our 2008 tax refund, why was the government saying "go out and spend it, its free money." Pretty misleading if you ask me. I can guarantee that had I known the stimulus would have reduced our 2008 refund I wouldnt have gone out and bought an unneeded flat screen tv. Way to screw us over again government. Cvett1 , 9 Feb 2009 19:34:29 GMT If the stimulus package was an ADVANCE on our 2008 tax refund, why was the government saying "go out and spend it, its free money." Pretty misleading if you ask me. I can guarantee that had I known the stimulus would have reduced our 2008 refund I wouldnt have gone out and bought an unneeded flat screen tv. Way to screw us over again government. Cvett1 , 9 Feb 2009 19:19:17 GMT I'm in the process of filing my taxes - I am using the H&R Block online and they DOES affect the refund. If you're like me, you'll watch your refund/owe amount in the corner as you're going along - and *anyone* would be able to see that that number WILL go DOWN (if you're eligible for a refund) after putting your stimulus recieved amount. There are some rather rude people implying that people are idiots since they "can't figure out the stimulus" - but it's not them it's the program. If you don't believe them - do it yourself - you will get the same results. janecollege , 9 Feb 2009 14:39:35 GMT meengla - you are correct there is A LOT of confusion around this issue. Glad we can be of some assistance to consumers who are having questions.
David James
H&R Block TaxCut David James , 8 Feb 2009 18:25:37 GMT David James,
Thank you. Well, it is settled then: I, like lot of other Americans, will see our tax Refund reduced this year because we sort of got an an 'advance' credit last year. There is a lot of confusion and frustration around this. Mine was at least partly due to the advice I got from the HR Adviser to leave the field 'blank or zero'. And, oh, the IRS hotline about the Rebate Credit says that we could input kind of text code (non-numbers)beside the Rebate Credit fields if we are not sure about what to do which HR Block's online software does not allow. Hmmmm.
Anyway, there is a huge amount of confusion, frustration, and discussion on the web:
http://www.consumerismcommentary.com/2009/01/02/filing-your-2008-taxes-with-the-economic-stimulus-recovery-rebate-credit/
I hope it benefits others.
meengla , 8 Feb 2009 13:33:58 GMT While it is true that the rebate payment won't affect your refund... it sure looks like it does. What happens is that if you enter zero, the program adds the dollar amount to your refund because it thinks you are due the full amount of the rebate (because you just told it you never got it). If you actually look at the form (not the Q&A screen) you'll see that you are actually changing a field on the rebate worksheet.
PUT IN THE AMOUNT OF THE REBATE YOU RECEIVED OR ELSE YOUR RETURN WILL BE REJECTED. YOU ARE NOT REDUCING YOUR REFUND AMOUNT BY USING THE CORRECT INFORMATION. Justin621 , 8 Feb 2009 06:28:37 GMT Kristen0810 - no the credit will not affect your 2008 return. The credit was an additional amount - you either got the payment early, which is what most people did, or if you didn't, you could claim the credit on your 2008 return. (You only get it once.)
David James
H&R Block TaxCut David James , 8 Feb 2009 02:28:44 GMT meengla - sorry you are having trouble and it sounds like you got incorrect information, you do have to include the credit amount you already received on your 2008 return.
The advance credit (payment) is a one-time credit. You received the money in 2008, and so you cannot also claim the credit now on your 2008 return. When you indicate you received payment, you are in effect removing the credit, and your refund is reduced by the same amount.
When you left the fields blank, in effect you were claiming you were due the credit, which was incorrect and likely why your return was rejected by the IRS.
David James
H&R Block TaxCut David James , 8 Feb 2009 02:18:29 GMT This is my 4th year using HR Block's online tax filing. I have been satisfied before but this year I am not sure anymore:
My spouse and I DID receive total $1200 last year (2008) as part of the Stimulus package. But this year, as part of my online tax filing, a nice (really nice, serious) HR Block online tax adviser told me to leave the fields pertaining to Credit either zero or blank. I did that. Result, the Federal taxes have been Rejected. And if I input the $1200 from last year's Stimulus check then my Federal Refund reduces by $1200.
I cannot even get any more advice from HR Block because I chose the Premium package (instead of the Signature one) and there is no way I can upgrade now, it seems.
Hello! Why can't either HR Block or the IRS give a scenario based feedback/status on the Rebate/Stimulus checks. The scenario, like mine, could be:
'If you received $1200 in 2007 as a check for husband/spouse as part of the Stimulus package then this year your Federal Refund will be reduced by $1200'.
Is that what's happening? I don't want to try TurboTax or anything else unless I have to.
Thanks!
meengla , 7 Feb 2009 16:49:43 GMT toledowizard...Congress has made some strides in reducing the marriage penalty, but youre right that it still occurs, and it can be painful. Lots of things can affect your refund, though, so it isnt necessarily solely the fact that you got married that made the difference.
If you did not already receive the full amount of the stimulus payment you deserve based on your 2008 return, it isnt lost. You can get the difference back by claiming a recovery rebate credit. The first thing to do is to go to the IRS website, https://sa2.www4.irs.gov/irfof/IRServlet?app=IRACTC, to check the amount of the stimulus payment you and your wife received last year. (The most each of you should have received was $600 ($300 for you and $300 for your child) if you didnt have a tax liability, or $900 ($600 for you and $300 if your child) if you did have a tax liability.) Add the two amounts together.
Next, you have to calculate the tentative recovery rebate credit based on your 2008 return. If the tentative recovery rebate credit is more than the total stimulus payment you received, you can claim the difference as a credit on this years return. You may want to contact a tax professional to help you determine the credit you qualify for, if any. The tax professional can help you amend your return as well, if appropriate.
Best regards,
Brenda Schafer, The Tax Institute at H&R Block; MSA, CPA, CFP, EA Brenda Schafer , 6 Feb 2009 19:17:24 GMT In 2008, I filed head of household with 1 child and received 4700 and my girl got 3800 with one child. We also got 613 in stimulus payments even though we were told we were going to get 1200. We got married in 1/2008 and this year we filed jointly. We got 5100. I thought they were coming out with some sort of tax break for couples who suffer the huge penalty by getting married? It almost makes me wish we had waited another year to get married! Will we ever see that 587 we were supposed to get last year or is it gone forever? toledowizard , 6 Feb 2009 07:40:02 GMT I have read through almost this entire thread and am still confused. Can anyone tell me, plain and simple, will I somehow have to pay the $600 I got back last year back? I just filed online w/ H&R Block and what I am getting back seems to be pretty equal to what I got back last year...I'm confused because people keep saying this was a 'cash advance' so it makes it sound like we were given our tax refund for this year early, meaning we wouldn't get as much back when we file our 2008 taxes this year...but I got just as much back. Should I expect not to get all the refund I was told I would get when I filed online? kristen0810 , 6 Feb 2009 00:58:47 GMT layedoff....
You're right that the stimulus payment did not affect your refund, compared to last year. It's likely that your effective tax rate went up because you had more taxable income that fell into the 10% rate bracket. For example, assume a single taxpayer has total income of $15,000. His taxable income equals $6,050 ($15,000 - $5,450 standard deduction - $3,500 personal exemption). His tax equals $605 ($6,050 x 10%), yielding an effective interest rate of 4.03%. If his income had been $17,000, his taxable income would be $8,050 ($17,000 - $5,450 standard deduction - $3,500 personal exemption), his tax would be $805 ($8,050 X 10%), and his effective tax rate would be 4.74%.
I hope this helps ...
Brenda Schafer, The Tax Institute at H&R Block; MSA, CPA, CFP, EA Brenda Schafer , 5 Feb 2009 17:31:10 GMT justusjams ...
Let me see if I can help.
The rebate you received last year (and I am assuming you did receive one)was an advance on a credit that was going to be new on the tax year 2008 federal return you would file beginning January 2009.
You, and millions of other taxpayers, received the credit "early" in advance of filing your 2008 return. However, eligibility for the credit was based on your tax year 2007 return which most of you filed by April 2008.
Now, you are ready to file your 2008 return. The rebate cannot decrease your refund or increase your balance due. In fact, it can only increase your refund - you may have lost a job since you filed your 2007 return and had a decrease in income making you eligible for additonal monies, or you may have had a child in 2008 that would have been on your 2007 return, possibly making you eligible for an additional $300 for this child.
If you did receive your rebate last year, you are asked to supply this amount so the IRS can determine your eligibility for any additional funds. If you are uncertain about how much you received, you can click on the link on Digits that will take you to the IRS to obtain the amount. Delays in receiving refunds can be as long as one week if incorrect rebate amounts are used.
Please be assured your refund amount is not negatively impacted by last year's tax rebate.
Go ahead and file .. enter the correct amount of the rebate you received.
Denise Sposato, H&R Block
Denise Sposato , 5 Feb 2009 17:23:15 GMT Reimy - You have to indicate whether or not you received the stimulus money in the Credits section of the software. It sounds as if you had not indiciated that prior to submitting which caused the error. Once you properly applied the credit you received (you got the $$ last year) your refund went down by that amount.
David James
H&R Block TaxCut David James , 5 Feb 2009 15:57:32 GMT thomasad65 - no you don't enter the stimulus money in the income section but rather in the "credits" section.
David James
H&R Block TaxCut David James , 5 Feb 2009 15:51:35 GMT here is a better way to word this for this clarity...lol...
Lets say your refund is 4000.00, had you not received your rebate last May...you would of received the rebate amount (300,600,1200) on top of the 4000.00.
The 4000.00 amount would not change if you claim it. THE REBATE WAS GOING TO BE A GIVEN TO ALL OF US FOR THE 2008 FILING YEAR. THE GOVERNMENT GAVE US THE MONEY AS AN EARLY ADVANCE. IF YOU READ YOUR DETAILED TAX RETURN LINE BY LINE...TRY REMOVING THE REBATE AMOUNT AND YOU WILL SEE IN THE PAYMENTS SECTION WHERE THE REBATE IS LISTED.
IF YOU TOOK THE MONEY IN MAY YOU DONT GET THE BONUS NOW ON YOUR RETURN. THE REASON YOU THINK YOU ARE ALL SEEING A REDUCTION IS BECAUSE YOU SAID YOU DID NOT RECEIVE IT WHEN YOU DID!!! THE AMOUNT YOU SEE CHANGED WHEN YOU ADD OR REMOVE IS NOT YOUR INITIAL TAX REFUND. oharabrat , 5 Feb 2009 15:43:39 GMT I too did my taxes..and after reading this article I understand. I thought like everyone else as I was seeing the difference when I added or removed the rebate amount.
Like a few people said...it was an advance..basically...if they never handed them out last May you would have received a bigger refund this year...more to say it is an added bonus to the 2008 year in which we all received 7 months early. Cause if you take the rebate off and look at your detailed tax lines...you will see it would have been an added credit for 2008. put it back on it does not exist..basically cancels it out.
either way...if you received it in may..you will not get it on your return...if you did not receive it you will see it on your return.
It seems confusing but it really is not. oharabrat , 5 Feb 2009 15:34:07 GMT Just finished my 2008 taxes last night. Submitted them and they were rejected by the IRS. When I opened up my software it prompted me to go to the section stating how much I received from the Stimulus Plan. When I entered the amount it reduced my refund by that amount exactly. I have occasionally used a tax preparer to do my taxes for me and then ran the taxes through consumer tax software. I have fairly simple taxes and have never been off more than $15 (for either refund or amount owed) between the tax preparer and the software so I don't believe I have done anything wrong in terms of filling out the forms correctly. What a joke. Reimy , 5 Feb 2009 14:25:53 GMT Okay my husband and I are like SO TOTALLY CONFUSED about this REBATE thing. I've heard and read that you aren't suppose to put it on your taxes and that it won't increase or decrease the amount of your return. Well there is a spot every where we go whether it be taxact, turbo tax, or h&r block that asks the amount you received and we both have tinkered around and it does change the amount of the refund. I've had a ton of friends that say that noone even asked them when they went to a professional whether or not they received a refund and they didn't put it on there. So why is it asking... if we put 0 in there, is it going to give us another rebate or is that our taxes... because when we put the amount that we got in the stimulus it takes it dramatically changes the amount we're getting back. I don't understand none of this. I wish I knew, so we could go ahead and file... I don't want to pay some professional big bucks to do our taxes, I want to file Efile for free. So could someone PLEASE tell me do I enter 0 or the amount that I received. Even at IRS.GOV it said it's not suppose to be reported on your taxes so why is everyone asking? Please someone help! justusjams , 5 Feb 2009 03:46:00 GMT valerie ...
I know its confusing.
You are correct that the rebate isnt taxable. You wont actually report on your federal return. You probably already received the entire amount of the stimulus payment that you are to get, so its a nonissue on the federal return. Only two states make you consider the stimulus payment when preparing your state return. Oregon has indicated that it will tax the stimulus payment to the extent that it reduced state taxable income (because Oregon allows taxpayers to deduct federal taxes paid), and Montana requires you to reduce your deduction for federal income taxes paid. If youre not in either Oregon or Montana, you dont have to worry about your stimulus payment for state tax purposes either.
I hope this eases the confusion!
Best regards,
Brenda Schafer, The Tax Institute at H&R Block; MSA, CPA, CFP, EA
Brenda Schafer , 4 Feb 2009 18:35:13 GMT I am using TaxCut software to prepare my 2008 return. Where, if anywhere, do I enter the $1200 federal stimulus payment I received last year? For example, on the TaxCut page for entering sales tax deduction information, there is a box for nontaxable income. Should I enter the $1200 there? thomasad65 , 4 Feb 2009 13:22:43 GMT To the person who asked if anyone has filed their taxes yet, yes we have. My wife and I did ours on Jan 31. We used taxact online and it put the amount of our rebate ($1500) in the field automatically. It DID NOT, repeat D I D N O T!!! reduce the amount of our refund. We got back the same or a little more than we always do. To all those that think it reduced your refund, I am sorry but you are completely mistaken. You are doing something wrong or just not understanding it. Taxact was great and they had free efiling this year too. thebeans , 4 Feb 2009 13:19:39 GMT I am now totally lost. Seemingly, we do not have to claim the rebate as income but do we have to record it on the income tax return form? Puzzled (a lot).
Between my social security and small pension plus any interest received, I don't have to file - but need to fill out Fed form so that I can have the state one calculated. valerie , 4 Feb 2009 12:55:34 GMT I just did my taxes once with not mentioning the $600 incentive from 2008 and one with and low and behold there was a difference in my 2008 tax refund of exactly $600. The feds rejected my return with me not mentioning the $600 and only accepted the one that mentioned it and they reduced my refund by $600. This is not free money or anything like it. We are getting cut by whatever check we got earlier in the year. Some incentive. I would have rather had it all at the same time. Maureen , 4 Feb 2009 12:52:51 GMT Okay, I just did my taxes online. My return is half of what it was. I am not saying that the rebate changed it, but I did notice that the effective tax rate was up from 3.98% to 4.98%. We made a bit more last year but not enough to put us in a different tax bracket. Since I have been layed off so this comes as quite a blow. layedoff , 4 Feb 2009 00:25:16 GMT pj and Starrkittie,
As Denise outlined below The 2008 Tax Rebate you received last year will not reduce your refund nor increase your Balance Due when you file your 2008 federal return.
However, when you are running various scenarios in your tax software the amount of your refund (or amount owed) is dependent upon whether or not you have already received your stimulus credit. If you indicate "no" then the amount of your 2008 refund would be higher (by the amount of your stimulus check) than if you said "yes" to having already received it. You can only get the credit once. The stimulus check you received in 2008 was an advance credit against your 2008 tax liability.
Hope this helps clarify.
David James
H&R Block TaxCut David James , 3 Feb 2009 21:35:38 GMT I just went thru my taxes online. In 2007 I recieved a refund of aprox 3200.00, in 2008 I recieved a refund of aprox 3400.00. This year when I went thru it told me my refund was 2157. When I unchecked the Stimulus question, it raised that amount to 3957.00 Exactly 1800 more which was the rebate amount my wife and I recieved. If this stimulus did not affect my tax refund, then why is my refund so low this year with the stimulus checked? Our income actually wnet up a little and we paid all the same things as the last two years? pj , 3 Feb 2009 20:42:45 GMT How is it that everyone is saying that the Stimulas check can not change your 2008 tax refund. CAUSE IT DID FOR ME & MY HUSBAND. WE watched clear as day- tryin several different times and different ways. A grand Total of $600 each was taken out of our tax return check that we will be receiving. OUR REFUNDS WERE WITH A DOUBT, REDUCED!!!! We did ours on line at H&R Block. Like I said- several times and different ways. I feel we got robbed by the government. They didn't stimulate anything, why didn't they tell us this would come out of our 2008 Tax Return??? :( Can we tell them we don't want another stimulas check- like click the "no thanks" box? Starrkittie , 3 Feb 2009 19:52:04 GMT jds1976xxx ....
My recommendation woulod be to calculate your taxes again.
The 2008 tax Rebate cannot reduce your 2008 refund nor increase your Balance Due, should that be the case.
If you received all that you were eligible to receive, you won't receive additional monies when you file your 2008 federal return; if you are eligible to receive more, you will receive the additional monies with your 2008 refund. If you received more than you were eligible to receive, you do not have to pay it back.
But again, the 2008 tax rebate cannot reduce your refund.
I hope this helps ..
Best regards,
Denise Sposato, H&R Block Denise Sposato , 2 Feb 2009 17:12:07 GMT skipper3372 ...
The 2008 Tax Rebate you received last year will not reduce your refund nor increase your Balance Due when you file your 2008 federal return.
Try the calculator again ... the tax rebate was an Advance Payment - in other words, you received it early rather than having to wait until you filed your 2008 return. The credit makes its first appearance on the 2008 federal return.
Denise Sposato, H&R Block Denise Sposato , 2 Feb 2009 16:11:39 GMT warlord ...
Your friend is correct; the 2008 tax rebate, which you received early, will not reduce your refund when you file your 2008 federal return, not will it increase your Balance Due, should you have one.
So go ahead and file ...
Denise Sposato, H&R Block Denise Sposato , 2 Feb 2009 16:08:57 GMT warlord ...
Your friend is correct; the 2008 tax rebate, which you received early, will not reduce your refund when you file your 2008 federal return, not will it increase your Balance Due, should you have one.
So go ahead and file ...
Denise Sposato, H&R Block Denise Sposato , 2 Feb 2009 16:08:54 GMT bkazmer...
The 2008 Tax rebate you received last year cannot reduce your refund when you file this year.
It is a credit that is appearing for the first time on the 2008 Tax Year federal return. If you received all that you were eligible to receive, you won't receive it again when you file. If you are eligible for additional monies, you will receive it when you file. In other words, the 2008 tax Rebate can only increase your refund, not decrease it.
And, if you received more than you were eligible to receive, you do not have to pay the additional money back when you file this year.
Denise Sposato, H&R Block Denise Sposato , 2 Feb 2009 16:06:58 GMT I just did my taxes once with not mentioning the $600 incentive from 2008 and one with and low and behold there was a difference in my 2008 tax refund of exactly $600. The feds rejected my return with me not mentioning the $600 and only accepted the one that mentioned it and they reduced my refund by $600. This is not free money or anything like it. We are getting cut by whatever check we got earlier in the year. Some incentive. I would have rather had it all at the same time. bkazmer , 1 Feb 2009 05:00:31 GMT The reason you are getting different amounts when you enter different stimulus payment amounts into the HR calculator, is because if you didn't receive all the FREE money, (yes free) then you would get the rest IN ADDITION TO this years refund. I dont know why that is so hard for some of you to grasp..... taxpayer , 31 Jan 2009 22:27:22 GMT I have been reading the below listed commets and the ones listed on the IRS website. Has anyone actually filed a return yet? I have a friend at work who filed online and said that it didn't efffet his return at all. If you have filed, please post. warlord , 31 Jan 2009 05:30:32 GMT I also noticed a drop in my refund of exactly $600 which was what the amount of my stimulus check last year. I read articles that said it would NOT affect my refund but it clearly has. Did I do something wrong?? skipper3372 , 30 Jan 2009 16:30:51 GMT I think a lot of people here need to reread the text above. The stimulus check was like free money. I say like because if you actually pay taxes each year, you are getting money back thatvyou did not expect. It did not increase the amount of money you pay nor does it reduce your actual refund. They wrote in legislation to issue the checks and at the same time added in an additional credit into the 2008 tax law to offset that money. It is not an advance on the refund you are receiving this year, it was an advance on the credit they wrote in to 2008. Why would you be mad. The government could have held on to that money and earned interest, but had that option instead. Trac , 30 Jan 2009 03:17:56 GMT You can blame President Bush all you want, but President Obama is fixing to do the same thing. I agree with Monica-it would have been nice to have had the option to wait until filing 2008 to receive the "stimulus" in our refunds-I count on mine each year to stimulate my family. I have extra taxes taken out so it is sort of like a Christmas Club for us. I believe it was explained in the letter that came either before or with the stimulus payment, but we were all so excited about getting unexpected money that we just glazed over it. People need to quit blaming the Presidents for everything-Bush now and Obama real soon. Nothing is "free", especially money. We need to do our homework and quit relying on the media and entertainers for all of our information. justaregularjoe , 29 Jan 2009 18:46:52 GMT What a total crock!! The words "Advance Tax Credit" were NEVER used when we received the "Rebate". WTH!? I would rather have waited to receive a bigger refund now instead of receiving it back then. NOW is the time when I really could have used that extra $1100! I cannot believe Bush was allowed to deceive the public in such a shoddy way. I too used the tax calculator only to realize the "rebate" was deducted from my refund.
So help us if WE the people don't pay our taxes but our government is allowed to get away with lying to us about OUR money??
Thanks Bush....Thanks for NOTHING!! Rach , 29 Jan 2009 15:46:28 GMT veryupset01 -
It sounds as though you were unpleasantly surprised and disappointed to not get approved for the Refund Anticipation Loan (RAL) this year.
In this difficult economy, many folks find themselves in very difficult financial situations, and are very anxious to get money to help with those needs.
HSBC is bank that makes the lending decision. There are many factors that they use to make this decision. You can call HSBC at 1-888-832-5625 to ask about why your loan was denied.
The good news is that when a RAL is denied, it converts to a RAC and you will likely receive your refund proceeds in 8 15 days.
This is faster than waiting for the IRS to mail you a check.
David James
H&R Block TaxCut David James , 29 Jan 2009 15:42:41 GMT OK, I understand what you are saying about the advance not affecting you 2008 return. If you didnt get it last year you will get it now. That is why when you say you got it, you return goes down. I dont believe it though. I know my income has changed but not that much. Last year I owed about $800 to the feds and got back about $800 from state. This year I will owe the feds $2400 and am still getting back about $800 from state. When I take out the $1500 I received for the incentive, the numbers almost match. My income did not go up that much and any amount that did, was easily off set by extra contributions to my 401K. This thing just does not make sense. smokediver , 29 Jan 2009 15:07:37 GMT we used tax cuts and our return should have been around 3600, thats about what it was last year. We recieved 1800 in stimulus last year. Our return this year according to your tax cuts program is 1900, nothing has changed to our income or credits so please explain to me how the stimulus does not effect this years return. jds1976xxx , 28 Jan 2009 01:13:17 GMT Hi, i have used H&R BLOCK for years but this is my last year because i wasn't informed of the changes that was made i use to get my money back in 1 or 2 days now i have to wait at least 8-15 days and the worst thing about this is that i did pay the extra for the 1-2 days look as if to me that they need to pay my money back. i might as well have went the mail route. veryupset01 , 27 Jan 2009 18:21:01 GMT Hi, I'm a single woman who also got the $600 stimulus check and nothing changed from last year and I had to pay in to the federal tax (to my surprise after reading this article) when I felt I would have gotten a $400 refund. Please help if I did something wrong :) Thanks! samcraley , 26 Jan 2009 21:28:57 GMT Well I guess it is a good thing that we were all able to help "stimulate" the economy last spring, since we won't be able to do it now. I would much rather have waited as well. It wasn't called an "Advanced refund payment". It was called an Economic stimulus payment". It really does seem like a waste of everyones time. Misty Elliott , 25 Jan 2009 06:15:43 GMT I have a question- last year i was married when we got the tax rebate/advance, whatever we'd like to call it. I had 2 children so my now ex husband and i got back a total of $1800. If this is coming out of our refund does this mean i will have $900 less or $1800 less? alicia , 24 Jan 2009 04:12:06 GMT why wasnt taxpayer informed that the stimlus check was an advanced on your 2008 tax return so that you could have the option to decline the payment and recieved it when you filed your 2008 tax return.it seems like the deceptions to me to make president Bush look good an really care about taxpayer we all no thats not true Monica Daugherty , 17 Jan 2009 15:59:21 GMT My husband and I received 1200.00 stimulus payment for filing jointly. We also received 300.00 for each qualifying child which was a grand total of 2400.00. When calculating our taxes to file for 2008 the system put in that we received 1800.00. When I corrected the amount to 2400.00 my Federal refund amount went down 600.00. I thought we didn't have to pay it back. I understand that the amount that we received was a blessing, but why am I now having to pay it back? tammy , 16 Jan 2009 05:27:57 GMT hlg ...
If everything remains exactly the same year-over-year - salary, dependents, etc. then the tax rebate payment you received last year cannot reduce your refund for your 2008 filing.
We want to help you; would you be willing to contact me directly via email and supply a phone or mobile number where you can be reached? If yes, I will have one of our tax analysts talk with you directly.
Did you try the Tax Estimator calculator again?
Denise, H&R Block Denise Sposato , 15 Jan 2009 17:54:44 GMT OK, I get what you guys are saying about the stimulus not reducing our refunds. I guess what I'm confused about is why my salary was exactly the same for 2008 as it was for 2007, but got $922 refund for my 2007 tax return and will only get $329 refund for my 2008 tax return is the stimulus does not affect my 2008 refund. If I had know that I would get $600 less this year, I would of saved the stimulus check instead of doing my part to stimulate the economy last spring (lot of good that did "stimulating" the economy). hlg2008 , 15 Jan 2009 13:40:59 GMT MYTH The Stimulus Payment will reduce a taxpayers 2008 refund.
FACT The payment will not reduce refunds or increase the amount owed when a 2008 return is filed.
buttwiggles , 14 Jan 2009 18:01:03 GMT What a joke this over complicated rebate/advance turned out to be. If our refund is reduced by the advance, what have we accomplished other than miles of paper work and utter confusion? ken fierro , 14 Jan 2009 15:59:21 GMT My rebate was used by the feds to pay off my tax bill for 2007. How am I impacted when filing my 2008 taxes? gailnyc2009 , 13 Jan 2009 15:50:30 GMT The $600 rebate check will not be deducted from the refund that is owed to you. The last paragraph of this article says "Your 2008 rebate payment will not decrease your refund when you file your 2008 return". The government simply gave everyone that qualified an extra credit on their 2008 tax return. If someone didn't get the $600 rebate check based on their 2007 return, they still can receive it if they qualify for it based on their 2008 return. So they would be receiving $600 extra on their tax refund. If you've already received it, you just won't get it a second time around, but it won't be deducted from your refund. MicahC89 , 13 Jan 2009 00:20:01 GMT When I did my tax return estimate with the calculator on the website my tax refund went down by $600 which is the amount I received in my stimulus check.I decided to see if my refund would change by putting all my same information in and leaving out the tax stimulus payment and as suspected my refund went back up by $600 dollars.I guess that is just a big coincidence since they said we were not going to have to pay the stimulus checks back.I also had a few of my friends do the same just to make sure I wasn't making a mistake everyone of them had the same thing happen to them. mzhicks , 12 Jan 2009 01:29:05 GMT The words "advance credit" are used several times throughout this article. When I think "advance", I think of something that is due to me a later time that I receive at an earlier time. So, if I get an advance on my paycheck for an upcoming pay period, I can expect my paycheck to be less than what it would have been had I not received this advance. I think that the rules should have been clarified when these stimulous checks were being touted as money that was being given to taxpayers to stimulate the economy. When I send in for a "rebate" it is money that I have already spent, and after sending proof of payment, I receive the money back. There is a definite difference between a "rebate" and an "advance". Think about it. faille , 10 Jan 2009 23:20:13 GMT What a gift to a client whose 2008 return is processed by an observant H & R tax pro. The summary article is concise and provides sufficient information for any tax pro to apply. This possible 'tax rebate' is another reason for seeking out a competent H & R taxpro to do your return so that the possibility of it being forever lost by any hard working taxpayer who has fallen on hard times is avoided. 09samhaim , 10 Jan 2009 14:42:21 GMT yeah: basically, it won't affect your tax return--it's not considered income, it's considered an advance on your 2008 tax refund. the amount they sent you last spring will be subtracted from the refund you're eligible for once your taxes are filed. personally, i think it's annoying: if someone got $600 and their refund ends up being only $250, they don't have to pay back the difference of $350, BUT, if my refund was supposed to be $800, i only get $200 back. i'd have rather had all the money in one big chunk, but it's too late now.. kathader76 , 9 Jan 2009 21:10:31 GMT The article states that the tax rebate won't affect my 2008 return, but when I entered my tax info into the H&R Block calculator, I'm estimated to get back almost exactly $600 less for 2008 that I did for 2007 even though my income was exactly the same for both years. That tax rebate was the only the different for me in 2008 than in 2007. I guess I'm still confused about the tax rebate. I would have rather got it back as my usual tax refund instead of getting back in the spring. hlg2008 , 9 Jan 2009 12:16:10 GMT
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