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

This article was written by in Taxes. 171 comments.


If you didn’t received a payment from the economic stimulus that was devised by the United States government last year and your situation now qualifies you for the credit, you should claim this amount when filing your 2008 taxes.

On the 2008 tax filing forms, there is a line designated to enter this amount, listed as the recovery rebate credit. On the traditional 1040 form, it is line 70. On the 1040A, enter your economic stimulus amount on line 42. The 1040EZ requires the rebate credit on line 9. Here is what the line looks like on the 1040; click on the thumbnail for a larger snapshot.

Recovery Rebate Credit

The instructions for all three forms include a worksheet to help you calculate how much of a credit you should receive towards your 2008 tax due. By following the instructions on the worksheet, you can calculate the credit you should receive based on your 2008 tax situation, list the credit you received last year if any, and subtract the latter from the former to get the amount of the remaining credit owed to you.

If the result is a positive number, you can claim an additional credit. If the result is a negative number, you don’t have to pay back what you received in 2008. You get to keep the excess credit you received. In most cases, if you received a payment in 2008 for the economic stimulus, you will enter zero on this line.

To simplify everything, just enter “RRC” on this line on the tax form. This will instruct the IRS to calculate the recovery rebate for you. Also, if you file electronically, your software will ask you the appropriate questions to calculate the recovery rebate.

Just so it’s clear, the 2008 economic stimulus is a new credit that’s appearing on the 2008 income tax forms that are due in April 2009. Either you received your credit as an advance in 2008 (the “economic stimulus payment”) or you claim it when filing your taxes (the “recovery rebate credit”); thus, the net effect is the same.

Updated September 13, 2011 and originally published January 2, 2009. If you enjoyed this article, subscribe to the RSS feed or receive daily emails. Follow @flexo on Twitter and visit our Facebook page for more updates.

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About the author

Luke Landes, also known as Flexo, is the founder of Consumerism Commentary. He has been blogging and writing for the internet since 1995 and has been building online communities since 1991. Find out more about him and follow Flexo on Twitter. View all articles by .

{ 171 comments… read them below or add one }

avatar Mamasox

My husband and I have a child in 2008 so that means we should get an extra $300 right? My question is we also lost a child in 2007 that we won’t be claiming in 2008. So we’re still claiming the same amount of children this 08 tax year (2) as the 07 tax year (2). Does the IRS recognize this? Or do they children “wash” each other? I mean they’d have to check ss#s to see it’s not the same dependent.

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avatar Flexo ♦125,041 (Platinum)

Mamasox: That’s not typical. It sounds like since you had two qualifying children last year and two qualifying children this year, you won’t receive an additional credit. If you call the IRS (make sure you talk to someone familiar with the Recovery Rebate Credit), let us know what you find out.

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avatar Mamasox

That’s had a child in 2008.. sorry

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avatar carolnren

I would just like to say that I do not fully understand the rules, however I was searching for an entirely different topic, whether or not filing my taxes early would prevent my husband and I from receiving any of the tax benefits being put in place by President Obama that have not been passed yet. I have not found the answer to that, but I would like to say that we got a portion of what was expected of the stimulus last year(900 instead of 1500 we should have received). After figuring our taxes this year, we ARE getting the difference of what we should have received as well as an extra 300 for my son who was born in 2008.I am not sure how much the deductions have changed from last year to this, but we are getting a substansial amount back compared to last year. It may not really make a difference as we owe state and they may take it from us there, so I guess I am saying if they are gonna get ya they are gonna get ya one way or the other. But, whatever they take from that to pay state will be that much less we do not have to pay out of pocket. We were kinda screwed out of the deal last year but I am praying we make up for it this year and actually have money coming back, which does not seem like is happening for many people to actually physically see the money. Just wanted to input my opinion that I am on of those that is seeing a positive difference this year, if you could call it that.

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avatar dcamp

Sounds like to me this stimulas check works exactly the way my pay program is set up on my job, for instance Im in sales and say I made a sale and Im going to recieve $2000 in commission the next day I get a $500 check, six weeks later I get paid for that sale, IT WORKS LIKE THIS

COMMISSION $2000.00
RECOVERY CHECK – $500.00
PAY $1500.00
Back to stimulus check, say its $500 this year,Last year I received $300. I BELIEVE IT WORKS THE SAME
STIMULUS CHECK $500.00
RECOVERY REBATE CREDIT – $300.00
STIMULUS CHECK $200.00

SOMEBODY CORRCT ME IF IM WRONG. BUT IF CORRECT HERES MY THOUGHT…. I APPRECIATE THE EXTRA MONEY BUT HOW IS $200.00 MORE PER PERSON GOING TO STIMULATE ANYONE OR ANYTHING?

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avatar wildcatherder

Another error in the worksheet.

On the Recovery Rebate Credit worksheet I received, Line 3:
Are you filing a joint return for 2008?
Yes. Go to Line 5
No. You cannot take the credit. Stop here.

My wife died three years ago. If I took this literally, I would not be able to apply for almost six hundred dollars (it is limited to the amount of tax you owe) in recovery rebate credit. I did not make enough to qualify last year, so I could really use it.

Two errors on one worksheet (see above error about apparently needing to be in the armed forces). Wow!

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avatar Dawn

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

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avatar caramelcherl

So nico help me out here please, I received $900 for my rebate last year, so what do I put next to the line that reads “Recovery rebate credit”? I entered the whole 900 and my refund came back -900. Should i just leave it blank or enter 0.

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avatar SYNYSTER

The biggest problem i have with this whole situation is that i had no choice in the matter. Okay,yeah, i could have just held onto the $1200 that me and my wife recieved from the government and could use that to pay them what we owe this year. Why would anyone do that? Everywhere,including the IRS, said that this money would not be taxable. Now that statement is true but what they didn’t explain in any sort of way was that it was going to effect your return this year. I may have paid off some bills last year but now i’m back in the hole again. A little hole but a hole non the less. I reiterate, we the people did not have a choice! That is why im upset.

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avatar Teoslola

I received the $600 economic stimulus check last May but now the IRS forms are deducting that amount from my tax refund of 2008 . (How is this supposed the simulate anything when they take it back 7 months later.)
I tried to ignore that line but the IRS rejected my tax return and only when I added the $600 on my forms and it was deducted from my return did they accept my forms.

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avatar Surly Heron

It is to bad to see so much confusion over this issue. I believe it comes from the fact that several filing programs automatically enter a rebate amount and then later back it out after the “amount received in 2008″ is entered. As a result many think they are “loosing” the payment, which is not the case.

One issue that has risen and I am trying to confirm, does claiming additional stimulus or entering RRC on the return slow down the refund. I have been told that the IRS is red-flagging these returns and refunds are being held up 8 – 10 weeks.

If this is the case would I be better off not claiming the stimulus and not entering RRC and then assume that the IRS will review my records and determine if it is due to me?

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avatar weirdred

I mailed my return 1-31-09 and claimed $600 additional stimulus (we had no tax liability in 2007 but we do for 2008). I usually get my refund direct deposited fairly quickly, so I can post if it takes more than a few weeks…. although even if they red-flag it, they will easily see that we had less credits and more income this year.

I personally wouldn’t trust the IRS to make sure that you will get additional credits. I would rather wait a few extra weeks than have to file an amended return if they didn’t catch it.

Oh and BTW, the RRC did not affect my return in ANY way other than getting the additional funds. However, I do my own taxes without a program, so I wasn’t under any illusions ;)

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avatar LL

I did my taxes online and the stimulus check is pushing me into owing over $800 – if it weren’t counted would have a refund. The check itself was for $900.

The thing is, I never got the check it was diverted by student loans. The same student loans that garnish my paychecks at 25% with no end in sight even though the amount of the loan has been paid back at several times it’s value.

Is there anything I can do about this since I never even received the payment? Can it still be considered as income if it was diverted? I don’t know how I can pay an $800 tax bill when student loans who got the payment in the first place also make it so there is no disposable income.

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avatar superhottie1220

I Just got married in november, after i received my stimulus check. will I now be able to file for the rebate on my taxes? and how should we file last years taxes?

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avatar SMontego

Question:

I already mailed in my 1040 EZ.

I was not eligible to recieve the stimulus last year because I was a dependent. This year I am not a dependent and am therefore eligible.

I forgot to enter on line 9 that I should be recieving $600 as a credit rebate because I didn’t see it. I have already mailed my form. What do I do now to ensure I get the rebate credit? Do I have to amend it?

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avatar Flexo ♦125,041 (Platinum)

SMontego: The IRS *should* catch it and add your stimulus to your refund.

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avatar jayme

I got married this year and we are filing jointly. Do you put in our combined stimulus check amounts? (We received separate checks before we got married)

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avatar think0011

Perhaps Flexo can help answer this question.

I did not receive the stimulus last year. MFJ with 2 kids. One kid turned 18 in 2008. The other is 16.

If I got the stimulus last year, it would have been $1200.

In reading through the material, I guess I am only eligible for $900.

Please correct me if I am wrong….

Furthermore, I am itemizing and so my child tax credit may be limited. This has an effect of further lowering the Recovery Rebate Credit to $600.

Thus, if was eligible in 2007 tax returns, I would have received $1200, but 2008 would amount to $600.

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avatar weirdred

think0011 – It’s based off of 2008 returns. If you had gotten it in 2007 it was just given “early” to start folks spending. If you got over the amt you were due based on 2008 taxes you were allowed to keep it, so you would have had the $1200.

Basically, I think the only thing you can do is file 2008 taxes and get $600. Why didn’t you get it in 2007? You probably should have tried tracking it down when it was based off of 2007 numbers. You can’t choose the better option; they just wanted the money out there immediately in 2007 so they estimated it based on 2007 numbers.

EDIT — MFJ should get $1200 PLUS the amt on the kids, so with one child it would be $1500. Unless you didn’t have enough tax liability to qualify for $1200? I dont have kids but I didn’t think the child tax credit would reduce the amt?

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avatar Salone

Flexo: I think you need to do a little more research. I usually get about $1200 dollars back each year. And yes you can get the about the same amount back if your income doesn’t increase and your deductions are the same. I put in that I received a $900 stimilus payment and went back and put in 0. With putting in zero I would receive about 1200 with putting in 900 I will receive 300. Lets do the math the difference is $900. The government is taking the money back.

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avatar Scott

Just Another way to describe it…..
Think of it this way. The government decided to give you for example $600 to help your economic situation (which is why they called it economic stimulus). They did not change the tax laws on what you pay on your income. On your 2008 tax forms they are asking whether you received your rebate, and if you didn’t, they will adjust your refund to give that $600 to you because you still have it coming to you.

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avatar nmireles

Last year(2007 tax seaon)my husband and I filed seperately. He received $600 and I received $600 for the stimulus check. My husband was umployeed all of 2008. So, this tax season I filed for my income and we filed joint, but he has no income. On the recovery rebate line I put $600, because this is what I received. Should I have put his too? I filed through Turbo Tax. I receive where the IRS accepted my return and I was suppose to recieve my refund on Jan 30 he first time, Feb 3 the second time, and now it says Feb 10. Is this delay due to the fact that I only entered my rebate amount and not my husbands?

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avatar Cara

hey I’m trying to file my taxes online with FreeTaxUSA which I’ve used in the past and had no problems. when I came to the part about the stimulus it said it estimated that I’d have recieved $600 but I only got $300. I also checked the IRS website and it said I recieved $600 too. I filed single w/ no dependants last year and nothing has changed… Is there something I’m missing or can I put that I got $300? I didn’t owe any taxes when the stimulus was addministered (I got a refund the year before) I just don’t want to screw it up and get introuble but then entering RRC or whateve for the IRS to do it I think they’ll enter $600 but I didn’t get that.

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avatar anjvik

Last year I filed returns with filing status as Single and recd. $600 as stimulus. Now this year my filing status has changed to Married filing jointly. My spouse is new to US and she didnt filed last year and hence didnt get any stimulus. Is she eligible for recovery rebate credit of $600 this year. Should we put $600 as recovery rebate credit in our filing form 1040 EZ.

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avatar cvlakey

We adopted a baby in 2007. When we completed our 2007 return we had not yet received a social security number for our son so we had to use an adoption tax id. When we got our stimulus check it was only 1200 because they said we had to have filed with a ssn to get the 300 for our son. So I thought we would get the 300 when we filed our 2008 return. But since we our taking the adoption tax credit which makes our line 56 on form 1040 0 we don’t get the 300 on our son. This doesn’t seem right. The Recovery Rebate Credit Worksheet allows you to add back in the Child Tax Credit in order to get the stimulus but not the Adoption Tax Credit.
Is there anything we can do?

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avatar confusedinky

my wife and I have 2 kids and in 2008 we had a third child . the calculator for the stimuls estimated that we would receive $1800 but we only received $1200 for mfj and two kids, so should we receive a rebate of $600 or $900. when we filed our taxes the rebate blank was left blank following instructions from irs.

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avatar taxdummy

Will the recovery of the stimulus be a paper check seperate from the income tax check of simply added on?

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avatar Flexo ♦125,041 (Platinum)

taxdummy: The Recovery Rebate Credit, if you qualify, will be included in your refund (or will reduce your tax bill). It will not be a separate check or direct deposit like the Economic Stimulus Payment last year.

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avatar Kevin

ok i understand what everyone is saying about this stimulus check. what make me mad is that it cost millions of dollars to mail out the letter saying your getting a check then millions of dollars to send out the check. it was a wast of money then if it was only an “advance on your 2008 tax refund” when they could have just waited and gave you the tax credit on your refund and mail only one check out that they do evey year. for the people like me who pay in a little each year i now owe the amount of the stimulus check back. i know what you said by i am not really paying it back but i pay in every year and i should not have got a stimulus check then and i would not have if i had know how it worked but now i am stuck oweing the 600 back this was a stupid mistake and cant wait to see how is pans out

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avatar cliq2000

Well I for one am in agreement with the majority on this one. I believe it was a mistake on the part of our government, and shame on them for decieving the public so blatantly. I too would not have asked for the payment if I had been told it was actually an advance payment. This is what it used to be called. My question is this; does anyone know of a GOVERNMENT site or phone number where the taxpayers can go to make our opinions known? I mean I obviously am not the only one who is outraged! We should be voicing these concerns to those who have violated our trust. I also want to comment that it is very good of TurboTax and other tax sites to help us with these questions and concerns.

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avatar mbochte

just a quick question…
I filed my taxes on Turbo Tax online, and it said my refund was going to be $706.

Then it took me to another screen where it said:
Looks Like You’re Getting an Additional Tax Rebate!
Based on your entries, you qualified for the 2008 tax rebate when you filed your 2007 tax return.
Your situation has changed, and you now qualify for an additional rebate of $300.00 when you file your 2008 return

This did not change my refund amount at all. Does the 300 come later, or was that already included in the $706?

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avatar Flexo ♦125,041 (Platinum)

mbochte: If $706 is the amount that TurboTax explains is your tax refund after completing the entire federal questionnaire, then it includes the extra $300 for the Recovery Rebate Credit.

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avatar StewyTGreat

Flexo: you appear to be very helpful and i thank you for trying to explain this so many ways. I understand how it works, and i understand that were not getting the money twice, But here’s were i get confused. So if say i didn’t get a recovery rebate credit last year, and this year i qualify for one. Does that money get added to my return? and then i would have to deduct it from my refund next year? Its not my situation at all i am owing because i get back 450 but now pay 150(i wish they had told us exactly how it worked beforehand). But i am still curious about this. So if i qualify for 600$ rebate credit and am expecting back say 1000$ even… According to everything i understand i would only still get 1000$ but they would just claim i got an extra 600 dollars? OR would i get 1600 and then next year that 600 would be deducted from taxes and if i was getting the same amount i would only get 400$ back the following year. Because honestly i Lost all faith in the government in tricking so many people who they know wouldn’t read it. Not to mention how can they claim it as a 900 billion dollar or 400 billion dollar stimulus package if at the end of the year they get it all back? and yes even though its not affecting my refund they are now getting all that money back. So really there hurting more people than there helping because i am going to be very broke owing and getting nothing back, whereas i would have survived without the 600 just fine but loved the idea of extra money. and without thaat 600 i wouldn’t be going into debt now taking out a real loan to cover what i owe. The economy can’t be better with mroe people owing now not knowing the rules!!!!

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avatar Hevenbnd24

I also have a question. My husband and I were seperated through 2007 and filed differently that year. I claimed HOH, and he filed single. We got back together in 2008, and also took custody of our stepdaughter. Our amount recieved is different than what it would’ve been had we been together and claimed married.

Is this going to cause a review at the IRS? I really don’t want to explain the seperation?

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avatar TaxPro

I wanty to respond to a couple of posts relating to what to put in if a taxpayer was married or divorced in 2008. The IRS website gives the instructions as follows:

(my summary)

If you filed as married filing jointly last year and are not doing so this year, each taxpayer is to enter 1/2 of the received amount on the worksheet.

If you did not file a joint return last year and are filing as maried filing jointly, add the amount received to the amount that your spouse received. (see the next case as well).

If you filed as married filing jointly last year and are filing married filing jointly with a different spouse this year, add 1/2 of the amount you received to the amount that your new spouse received.

Or to simplify things a bit, if you filed a joint return last year, the IRS says that each of the marriage partners received half of the payment. If you are filing a joint return this year, the total amount you received is the total of the amounts that each of you received last year.

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avatar Juicylee

I filed my taxes using software purchased, the only way it would take was to put $600 in stimulus recovery sheet. which in turn deducted from refund. Will I receive my $600 back, since now everything is saying I should have put ‘zero’, but the IRS kept kicking back as inc orrect.

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avatar Sarah

For years, My tax return has remained roughly the same amount…except of course this yr due to that lovely stimulus check. Your tax return should be about the same every year if nothing changes. This is just pure blindsidedness from our government…if it was going to be part of our 2008 tax return than that should have been clarified to us and we should have had the option to take if early or not…all they did was give us OUR MONEY EARLY while continuing to state that if was free money…bull@@@@!

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avatar Hevenbnd24

Head of Household received 300 instead of 600 (+ 300 for each child) I am claiming married this year.

I also am wondering because neither one of claimed my stepdaughter last year. Her mom did, and recieved the check for her. But this year it’s coming into us. I don’t want to do anything wrong, will it be on her mom this year? I verified the amount through IRS site. I got 600, he got 900.

Basically we are getting $600 more in the taxes because of status changing. 300 for HOH changing, and 300 for stepdaughter.
What’s with that comment about all of them going to manual review? That’s everybody in the country that had a baby, and everyone that got laid off that didn’t qualify last year but do now. That’s a LOT of people.

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avatar weirdred

Maybe this will help explain why most of you still aren’t getting it — due to problems with the software. if you do it by hand it shouldn’t change your refund amt.

here is the link
http://www.msnbc.msn.com/id/29041264/

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avatar Flexo ♦125,041 (Platinum)

Yes, that MSN article says the same thing I’ve been saying here all year — and last year, when the economic stimulus was announced. Most people won’t get the recovery rebate credit because they received the economic stimulus payment.

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avatar wynd0ze

Thank former President Bush for the mess.

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avatar Prashant

Gosh, some people are so slow and so dense that it is completely mind-boggling. If you are really so sure that all you got was a “loan” and the government just screwed you over, then why don’t you try pulling out your calculators and doing the math using their tax tables?

For all of those who supposedly get exactly the same amount refunded “like clockwork” (despite tax tables are inflation adjusted, and so are personal exemptions and standard deduction values), I always owe anywhere from $900 to $600 every year and this year I only owe $400. Hmm, maybe they’re screwing you to give me your refund?

I have a question similar to Jason above. My girlfriend (23 yrs) was claimed by her dad dependent last year while she was in the final year of college. We don’t know if her dad got a refund for her (they’re not on talking terms) and she will file as an independent this year as she is working and has a job.

Any way to figure out what the correct amount to claim would be? The tax software we’ve looked at is unable to provide much help.

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avatar Prashant

And people, please please don’t just blindly trust the software! Read the forms that it spits out, and make sure that everything looks OK!

I know, the software is supposed to do all that, but in the end we are responsible for our taxes, the software isn’t.

The Government didn’t advance you something to take away, it just gave out $600 per person EXTRA (in addition to any refund you would get) and chose to give it to you in the middle of the year instead of next year. For some unlucky people who did not get the EXTRA money, they will just get it this year.

It’s free money! FREEEE!!! They don’t want it back. They’re not taking it back!

They just don’t want to give you free money TWICE. Of course, I wish they would, but instead they’re just giving the free money to the banks. No more free money (ha, it’s fiat anyway) left for the common hardworking people.

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avatar Brad

I did not apply for an SSN for my wife in 2008 as I was not aware that for the Stimulus check, we need SSN. I cannot get the rebate stimulus credit now as she still does not have the SSN. But I can apply for her work authorization and then get the SSN somewhere in July 2009. What are my options?
1. File the return now, & then go for the amended tax return
2. Apply for an extension, & then file the return in July 2009.
3. Would it possible to claim this in 2010 return?

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avatar missy

See, everyone is blaming Bush for everything that is wrong with this economy. Next they will blame Obama! Look, this economy has been going downhill for a while. And guess what? It started before Bush. I am so sick of everyone blaming the wrong people. You really need to go back further than that.

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avatar rickay

i watched my tax preparer do everything on my taxes my refund was over 2000 and when they entered that i got 1500 for the stimulus my refund dropped 1500.00 NOT COOL. This whole thing is very confusing to me and no one else on this base had to put the stimulus in there taxes so i do not think i should have to. If i do not put it in will they later come back and tell me i have to pay them the 1500.00 back just seeing if i should put it in or not. any feedback would help.

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avatar Flexo ♦125,041 (Platinum)

Rickay: You’re not paying the $1,500 back. If your refund *didn’t* drop by $1,500 when you entered the correct amount on the line for the recovery rebate credit, you’d be getting the stimulus payment *twice,* once last year as a special payment, and once this year included in your tax refund. Since getting the payment *twice* would be unfair and cost a lot of more money to the government, they only want people to get it *once,* as they planned from the start.

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avatar weirdred

rickay –
you. are. not. listening. OF COURSE it will drop — YOU ALREADY GOT YOUR MONEY. The “default” is that you will get the stimulus with your taxes. Because 95% of people ALREADY got their stimulus money, it HAS to deduct it or you would get it twice.

Yes it’s confusing, I agree. It’s not being taxed, it’s just being noted that you already got it.

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avatar sandshaker

We received A $600.00 stimulus check last year. Now I am filling my income taxes they say no you received $1,200. I used Turbo Tax and was rejected, My bank, believe it or not, does not keep records that go back that far. I have no proof of us only recieving the $600.00, is there some other way to retrieve this information other than the IRS website?

Signed
ughhhhh

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avatar Jks

I forgot to add recovery rebate credit of $300 dollars
simply I didnt know until read this and I have filed electronically already,
would IRS catch this and include extra $300 dollars to the return?
If they dont what do I have to do?
Yes I am eligible for this.

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avatar BooBoo123

What is this RRC you mention putting on your form?

I’m on Social Security Disability and up to this year my parents claimed me, however they didn’t claim me this year so I could get the rebate. Should I have filed for the rebate last year even though they claimed me…they didn’t get any $$ for claiming me as I am 36. Do I use form 1040EZ?

Thanks.

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avatar matthew

Last year my wife and I only received $600 instead of $1200 as most married people did, will we get the other $600 this year? If so, how?

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avatar becky

Im confused my stimulus last year was 698 but the new calculator says it should have been 900.
I had HR Block do my taxes but they said they dont know if I’ll receive the other 200. So the question is when would I receive the 200? With my regular return or after? I just received my return and it was exactly what HR Block sid it would be and there was not an extra 200??

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avatar Sally

I am in the same boat as you. I calculated my tax withholding carefully last year to keep it about the same, either we would get a small amount back or owe a small amount (under $200). Now because of the Tax Credit, I now owe well over $900 to Uncle Sam! I too wished they had left well enough alone! Fortunately for me, I never took it out of the bank, so I am able to just pay it back. . . ..

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avatar Chas

Flexo,
Thank you for explaining this issue. I think my unpaid stimulus check just went from $1,800.00 to $1,500.00. Also the IRS apparently paid out millions for ineligible 16 year olds, which no one has complained about.

My wife and I filed our 2007 tax return before 4/15/08, making us eligible for a stimulus payment of $1,800.00. Apparently, because we were filing an amended return for a previous year, the IRS delayed sending our check and did not send our stimulus payment in 2008. In January, 2009, the IRS sent us a letter saying that we were due $1,800.00 and by law they were required to pay it in 2008, but they did not pay it so we “might be able to” to recover it on our return for 2008. Unfortunately, one of my children turned 17 in 2008, so we are now eligible for only $1,500.00.

That is aggravating for us, but technically I do not think that we were cheated. However, even though we were not paid for our ineligible child, the parents of over 4,000,000 other ineligible 16/17 year olds did receive $300.00 per child, meaning $100,000,000 in stimulus payments were overpaid. I think we were all cheated on that.

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avatar confusedness

This question might have been asked before, but here is my confusion:

I made a mistake in one of my three kids’ SS# in my 2007 return thus I did not get “any” Stimulus money (in addition to owing taxes for ineligible dependent) last year. Owing taxes for 2007 part was later corrected/removed by IRS after I contacted them and corrected the digit in my kid’s SS#, however, it was after the Stimulus deadline, so they could not do anything about Stimulus check and advised me to use 2008 return for recovery.

Now I am trying to use RRC, but since my kid (oddly enough the one I made a mistake in SS#) turned 17 in 2008, I cannot qualify her for $300 that we would have gotten in Stimulus check. In other words, if I hadn’t made a mistake in 2007 return, I would have received $1800 (1200+2*300), but now I can only get $1500 RRS in my 2008 return. I do not see in the IRS instructions that the Stimulus was forward rebate unlike that earlier tax credits when we had to list any credit received in the previous year. And the instructions says that RRC is excatly the same as Stimulus Rebate except that it si based on 2008 conditions instead of 2007 conditions. In most cases, people will be eligible for more than Stimulus, but in my case I will not get this year what I was eligible last year.

So my question is whether anybody has information on RRC being forward rebate? and if anybody will be giving back any money it their 2008 conditions changed to worse, i.e. the stimulus payment was correct for 2007 conditions but created a overpayed credit for 2008 conditions. If not, how come people who got their stimulus based on 2007 can keep that rebate if they should have gotten less based on 2008? Should I kiss that $300 dollars, that I never had. goodbye?

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avatar mi2jax

Okay, uh lets do the math. give us 600.00, take 600 away = they gave us nothing!! You can put the verbage anyway you like it, but math doesn’t lie!! Americans manipulated again… Yeah! What they gave us was an intrest free loan…

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