Rebate

[tpnl]

I attended an update seminar Monday and the group putting on the updates seems to think that there will be a lot of new rebate claims for tax year 2008. Example divorced/seperate parents dad claimed the kid on the 2007 and received $300, now in '08 it is mom's turn, she will get $300. As stated before, if you received too much, you will not be asked to return the overpayment. Also suggested is MFJ could file MFS in '08. The main taxpayer in '07 (the first name listed) claimed kids will have received the credit and in '08 the secondary spouse will claim kids and receive credit.

What have any of you heard on this matter?

[ChEAr$]

Not understanding

I attended an update seminar Monday and the group putting on the updates seems to think that there will be a lot of new rebate claims for tax year 2008. Example divorced/seperate parents dad claimed the kid on the 2007 and received $300, now in '08 it is mom's turn, she will get $300. As stated before, if you received too much, you will not be asked to return the overpayment. Also suggested is MFJ could file MFS in '08. The main taxpayer in '07 (the first name listed) claimed kids will have received the credit and in '08 the secondary spouse will claim kids and receive credit.

What have any of you heard on this matter?

your question. I thought the "stimulus" was past history after oct 15th, except of course
for any unpaid amounts eligible as rate reduction for 2008.

[Gretel]

Yes, the "Stimulus" is history but not the credit that can be claimed on 2008 tax returns. If this credit is higher than the stimulus payment was T/P gets more money. Another reason to raise fees.

Interesting scenarios, and I don't see why they wouldn't work.

[tpert]

That's how it worked last time when parents claimed kids in alternate years, so I guess it will work that way again.

[Earl]

Rebate

Found interesting that they suggested that could file MFJ in 2007 and MFS in 2008 and get the rebate for children for both years. Does this sound like it would pass? Would anyone want to be the one to try this? I would like to see more justification for using this procedure before I would try it.

Anyone else have any information on this portion of the rebate program..

[Jesse]

I just came back from a seminar and the text states: "if married taxpayers filed a joint return for 2007 and they file separtely for 2008, half of any advance rebate they received is treated as allowed to each spouse".

Upon further discussion we were told yes it is split in half so a couple w/ one child received $1,500, they will each claim $750 if they file seperate in 2008. The end result will be the person who claims the qualifying child in 2008 could potentially receive an extra $150. Qualifying Credit of $600 + $300 less the $750 deemed to have received allows another $150.

Think of the games that could be played. Do you think further guidance will be issued?

[FEDUKE404]

Stimulus scenarios for 2008

The "Recovery Rebate Credit" stimulus payment for 2008 is not history, merely the pre-payment of it via the 2007 tax return data.

The scenario is, rightfully or wrongfully, following exactly the same path as that of earlier stimulus payments:

1 - You never have to "repay" anything
2 - A person no longer married is considered to have received half of the MFJ stimulus amount from the 2007 return
3 - A person who had too much income on their 2007 return can receive up to the full amount of the "original" stimulus payment if their income has decreased enough during 2008.
4 - A new little "bundle of joy" that arrived in 2008 can also potentially give you some more money that otherwise was not available based on the 2007 tax return.


FE

[dyne]

Rebate from 2008 tax return is REFUNDABLE

According to www.irs.gov those who failed to file a 2007 tax return to get the rebate
or tax stimulus payment may simply file a 2008 tax return to get the rebate. Since their
are supposedly millions of people who did not file their 2007 tax returns, this may
cause many such taxpayers to file a 2008 return. More trouble for us. And imagine what
a mess it will be if Congress creates a SECOND tax stimulus payment.

[Ray]

More on the Stimulus

I thought the stimulus was an advance on the 2008 refund. If it is I sure can't find a line that subtracts it out on the 2008 1040 draft.

Was my assumption wrong? It really is a freeby?

Ray

[FEDUKE404]

Stimulus credit on 2008 tax return

I thought the stimulus was an advance on the 2008 refund. If it is I sure can't find a line that subtracts it out on the 2008 1040 draft.

Was my assumption wrong? It really is a freeby?

Ray

Go to line 70 of 2008 Form 1040, and refer to the appropriate worksheet.

(You don't "subtract it out" but, under the correct circumstances, you can add any allowable and unused credit to the total shown on line 71.)

As for any "freebie" issue - you never have to return the funds.

FE

[tpert]

Right.

The worksheet subtracts out what you were paid last year. And just like last time anyone who filed the 2007 return on time gets two chances to qualify (with the 2007 return and with the 2008 return). Anyone who missed the October 15 deadline is stuck hoping that their 2008 return allows for the same or bigger credit than 2007 did or they lose out.

In the original post, if the parent who had the kids in 2007 missed the deadline, only the parent with the kids in 2008 gets the additional stimulus rebate for them. If the parent who had them in 2007 met the deadline, that parent gets it based on 2007 and the other parent gets it based on 2008. Ain't taxes great!

[dyne]

2009 Tax Rebate?

on [url]www.myincometaxrebate.com/ is a 2 page article which says that a tax rebate may
be issued based upon the 2008 tax return. It all seems exactly like the rules for the
tax rebate issued during 2008 based upon the 2007 tax return. I have not heard of this.
It does not mention adjusting for the tax rebate issued during 2008. Are they wrong or
has such a law been passed? It says IRS will calculate the rebate. Now I am confused.
Comments?

[MLINDER42]

Rebate

As of now there is no new rebate.There will be a recalculation of the 2007 rebate based on 2008's earnings. If they should receive more or received nothing last year they will get it on this years return.Thank god for software but it will still be a pain.

[opie]

I just came back from a seminar and the text states: "if married taxpayers filed a joint return for 2007 and they file separtely for 2008, half of any advance rebate they received is treated as allowed to each spouse".

Upon further discussion we were told yes it is split in half so a couple w/ one child received $1,500, they will each claim $750 if they file seperate in 2008. The end result will be the person who claims the qualifying child in 2008 could potentially receive an extra $150. Qualifying Credit of $600 + $300 less the $750 deemed to have received allows another $150.

Think of the games that could be played. Do you think further guidance will be issued?

What you mention is definitely on the draft instructions for the Rebate Credit:

Enter the amount, if any, of the economic stimulus payment you received (before offset) as shown on Notice 1378. If filing a joint return, include your spouse’s payment. If you filed a joint return for 2007 and received an economic stimulus payment, you and your spouse are each treated as having received half of the payment.

[dyne]

HR 5140 states:"HR 5140 would provide REBATES to certain persons filing individual income
tax returns for taxable years 2007 OR 2008" www.irs.gov says that taxpayers who failed to
file a 2007 tax return to obtain a rebate may file a 2008 tax return to get the rebate.
www.myincometaxrebate.com provides details.