Comments on: Filing Your 2008 Taxes With the Economic Stimulus (Recovery Rebate Credit)

By: Heather

Heather — Tue, 09 Jun 2009 00:38:58 +0000

I have a question I filed my taxes and somehow because of the Bush stimulus I now owe 600.00 dollars it seems to me they sure are asking for their money back. I would have received 900.00 dollars back if it wasn’t for that stimulus. So, now what do I do? Any suggestion would be great.

Thank you!

By: Omar

Omar — Sat, 30 May 2009 15:44:50 +0000

Well I was in for a surprise when I thought I was getting a little something back ($80 something), but now the IRS has turned around and said that I owe $500. And, it turns out, it’s because of an incorrect amount on line 70 (regarding the recovery rebate credit). I think I entered all of the info correctly on Turbo Tax, but sure enough, when I changed that number on line 70 to $0, it adds up to what the IRS says I owe them.

By: Joan

Joan — Wed, 15 Apr 2009 18:15:23 +0000

Where in Turbo Tax is the section where you supply the Recovery Rebate Credit? This is the Turbo Tax Deluxe. My initial copy on my tax return gave me a $600 rebate credit, but after a review on a second return copy, it doesn’t prompt me for this information? This is confusing.

By: Brian Romberg

Brian Romberg — Tue, 14 Apr 2009 04:20:25 +0000

We did not receive any stimulus payments in 2008. Turbo Tax refused to accept our tax forms until we changed our filing to reflect that we received $1200.

In the program it takes you to the federal website, you enter your info and it tells you whether you get the rebate or not.

Now what do we do? Was our rebate check lost in the mail? How do we look into this further?

By: Uh-oh

Uh-oh — Thu, 09 Apr 2009 05:02:21 +0000

I have a great question that may prove that you should do your taxes on time. I filed my 2007 taxes late (January 2009). They owed me so there is no penalty; however, I did not receive a stimulus check. My income spiked in 2008 and it appears I do not qualify for the rebate credit. Is it possible my tardiness on 2007 will eliminate my chance for the stimulus?

By: Dawn

Dawn — Mon, 06 Apr 2009 20:09:05 +0000

Thank you for posting! It made no sense why you had to file a joint return to take this credit!

By: Flexo

Flexo — Fri, 03 Apr 2009 04:32:23 +0000

Unfortunately it was just a one-time tax credit, so don’t expect it every year.

By: Flexo

Flexo — Fri, 03 Apr 2009 04:31:31 +0000

Well, if you didn’t cash your check you could try asking the IRS to send you a new one or to allow to claim the Recovery Rebate Credit. As far as the IRS is concerned, they’ve sent you your check and you received your credit.

By: pissedoff

pissedoff — Fri, 03 Apr 2009 04:26:22 +0000

so every year from here on out we should get 1200 every year if this is a new tax credit?

By: pissedoff

pissedoff — Fri, 03 Apr 2009 04:23:04 +0000

what if we had not cashed our checks….

By: Flexo

Flexo — Fri, 03 Apr 2009 04:17:24 +0000

No, that is NOT the case. You’re not paying anything back. You’re just not getting it twice. This has been explained extensively. I don’t know how else to say it, but the 2008 economic stimulus payment was NOT a loan, it was an ADVANCE PAYMENT of a new tax credit.

By: pissedoff

pissedoff — Fri, 03 Apr 2009 04:14:04 +0000

So more or less you got a loan last year that you are paying off this year

By: Flexo

Flexo — Mon, 30 Mar 2009 22:17:37 +0000

As nico pointed out earlier: “If you answered yes to question #2 about having a valid social security number, you skip lines 3 and 4. Otherwise, the Armed Forces service comes into play.”

So most people, having a valid social security number, will never get to question 4 about the U.S. Armed Forces.

By: Richard St. Lezin

Richard St. Lezin — Mon, 30 Mar 2009 22:01:13 +0000

As i read the Recovery Rebate Credit Worksheet for Line 70 (page 62) question no. 4 disqualifies all persons from taking the credit, no matter anything else, if either the taxpayer or his/her spouse was not a member of the U.S, Armed Forces at some time during 2008.

By: ChittyChittyBangBang

ChittyChittyBangBang — Thu, 26 Mar 2009 20:37:23 +0000

You can explain it until you’re blue in the face, if you’d like but in my book they gave us a loan and now they want it back. We usually get a return each year. This year we filed differently and would, on a normal year, break even. Owe nothing, get nothing. Except that lovely check they sent us last year, they want back and now we will owe them the exact amount of that deceptive check that we received last year. They are taking it back. I don’t care how you explain it.

By: jay

jay — Mon, 16 Mar 2009 07:17:50 +0000

Hello all/flexo,

I am already late in my filing just because of stumilus confusion, would appreciate if some one can help quickly

last year due to some error, I didn’t got IRS $1800 stumilus check, and I they had instructed me to mention RRC in this years return.

When I use turbotax, if I enter zero (because I didn’t received the check) I arrive at $500 as my rebates? so is that already taking care of $1800 stumilus or IRS would add $1800 to $500 as a total rebate automatically? or should I enter -$1800 or simply do it manually

Thanks for advice and help

cheers,
jay

By: rluchente4

rluchente4 — Tue, 10 Mar 2009 02:22:33 +0000

I believe that is the case. You received the $300 stimulus check last year since you and your husband claimed him for 2007. His mother will claim him for 2008 so when she inputs her stimulus payment in the RRC section when doing her taxes (assuming $600 if she files single), it should calculate a $300 RRC. I guess the only way to know for sure is to ask a professional tax preparer.

By: stepmom

stepmom — Tue, 10 Mar 2009 00:29:36 +0000

I have the same issue–alternating tax years between our son. We received the stimulus check last year ($300). Does that mean his mother can also receive the RRC ($300)??

By: rluchente4

rluchente4 — Sun, 08 Mar 2009 20:46:51 +0000

Thanks for your reply edwardsdalejr. I understand but I’m confused because my ex-wife already received $600 in her stimulus check for our 2 youngest children she normally claims and which I’m now claiming this year. In other words, I received $600 for our 2 oldest children last year. She received $600 for our 2 youngest children. I’m now eligible to receive another $600 for our 2 youngest children even though my ex-wife already received that in her stimulus check last year. In total, we will have received $1800 in stimulus payment and recovery rebate credit for our 4 children. Originally I thought my ex-wife would have to pay back that $600 stimulus back if I claimed a recovery rebate credit of $600, but from what I’ve read, you don’t have to pay back any excess credit.

I would imagine this situation would come up with divorced parents who alternate tax years when claiming their children. For example, if the father of 1 child claimed that child in 2007, he would have received $300 in his stimulus check for his child. Since they alternate tax years for claiming their child, the mother would claim their child for 2008 which would make her eligible for a $300 recovery rebate credit this year. In total, they would each receive $300 for the same child. If that is kosher with the IRS, then I’m all for it.

By: edwardsdalejr

edwardsdalejr — Sun, 08 Mar 2009 15:09:44 +0000

The economic stimulus payment was based upon $300 per person or $600 for the working individual and then $300 for each other dependent. This would mean you would be able to get $600 for you and $300 for each of the children for a total of $1800. Since you only received $1200 you are entitled to the additional $600. This does not work like the Earned Income Credit that cuts you off after two children.

By: rluchente4

rluchente4 — Sun, 08 Mar 2009 05:08:23 +0000

I haven’t seen my situation posted anywhere. I’m a single father with 4 kids. I claim 2 of my children as dependents on my return and my ex-wife claims the other 2 on hers. Its been that way for the last 5 years except for this year. I’m claiming all 4 kids this year on my return. I received $1200 for my economic stimulus payment last year (600 for myself and 600 for 2 of my kids based on how I filed for 2007) . When I enter $1200 as my stimulus payment on the RRC worksheet, it says I’m eligible for $600 RRC for my 2 additional kids I’m now claiming for this year. Is this right? Would that be considered double-dipping?

By: Brian

Brian — Wed, 04 Mar 2009 19:36:38 +0000

The stimulus was offered last year as an advance to this recovery rebate, like Flexo said. IF you did not claim the stimulus last year, you are entitled to it this year as a recovery rebate credit. On your taxes, it is defaulted to say that you received NO stimulus last year and therefore you now qualify for it. Thats why it shows more of a return. It is acting like you are claiming a stimulus that was already given to you last year. You arent losing anything because of this, you simply didnt pay enough in throughout the year.

By: baby mama

baby mama — Thu, 26 Feb 2009 04:33:16 +0000

Thanks for the quick response Flexo. I will do them by hand just to ensure that Turbotax is not missing something with the changes that are not in effect in their system yet.
I wish I could say I wasn’t disappointed because I still am. We are having a baby in April and the possibility of owing $1000.000 is a difficult thing for us at this time. We will be looking forward to our extra tax deduction for 2009!

By: Flexo

Flexo — Thu, 26 Feb 2009 04:10:59 +0000

The key is in the answer to one of your questions: If you received an economic stimulus, unless you situation has changed, you do not qualify for the recovery rebate credit. That's because the economic stimulus payment in 2008 was simply an advance on the recovery rebate credit. The confusion arises when TurboTax assumes you did not receive the economic stimulus payment until you enter your information for the recovery rebate credit. Once you do that, your "running total" decreases by the amount you enter on that line. But that's correct. If you're concerned that TurboTax has an error in the program (it doesn't, but as I pointed out elsewhere, there are some tax law changes due to the new American Recovery and Reinvestment Act that have not been activated in the software yet), you can do your taxes by hand and compare.

By: baby mama

baby mama — Thu, 26 Feb 2009 03:57:24 +0000

Ok Flexo, perhaps I do not understand. If I am not repaying the stimulus check we were given and there is a recovery rebate credit for 2008 why do I owe $1000.00 when I add my $1200.00 stimulus check to turbotax and without it I am getting a $200.00 refund? If you received the stimulus check do you not qualify for the recovery rebate credit? Or, is the credit based on your stimulus payment paired with your income?
I have also read some comments that TurboTax has an error in the program. According to your explanations I would say it does not. Do you know if there is an error in the program?
I have also read if you received an overpayment of the stimulus you do not have to pay it back. The turbotax calculations sure make it appear as though I am paying it back.