New line on 1040 this year

[zeros]

I just heard about this. It involves the 2008 tax rebate payment taxpayers received. The line is only for filers who now deserve more than what they received. The rebates were based on a 07 return filed. Filers must use a complex 29-line worksheet to figure the right amount of the credit. Does anybody know about this?

[erchess]

Since before rebate checks started going out

I have known how the rebates were figured and that we were headed this year for something like what you described. However I have not heard any details. The worksheet should be no problem for a tax professional but the added complexity may send a few more former self preparers to professionals which is a good thing for professionals and for anyone concerned with compliance.

[JohnH]

I was hoping it would be more than 29 lines - maybe more like 3-4 pages that involved calculations that looped back on one another. The we could say, "Here's your form to claim an extra $300 rebate - that'll be $150 for the work I did on it. "

[Nashville]

First Time Homebuyer Credit

Will there be a separate new line item for the First Time Homebuyer Credit?

The IRS does not ask me how to design their forms every year, but I might suggest a single line for the combination of all refundable credits. Pouring out money in refunds to people who have never paid in seems to be in vogue for politicians nowadays.

[Jiggers]

Fees.........

I was hoping it would be more than 29 lines - maybe more like 3-4 pages that involved calculations that looped back on one another. The we could say, "Here's your form to claim an extra $300 rebate - that'll be $150 for the work I did on it. "

Well considering that the taxpayer won't remember, and our software may or may not have calculated the amount correctly from the prior year, assuming we did the prior year's return, we will probably have to access the IRS by way of phone or internet to get the amount of the rebate, there will be a fee.

I am guessing for the 5 minutes worth of work, including entering it somewhere in our software, I am probably going to charge $10 for a 1040EZ, $15 for a 1040A, and $20 for a 1040.

And then finding out that the client didn't get the rebate, and exploring the reasons why, I am probably going to charge $20 extra for those that didn't get the rebate.

Spread the wealth my way. That looks like about $4,500 more for me next year.

[JohnH]

Jiggers: I'm beginning to like your "spread the wealth" concept - did you borrow that idea from someone in the news lately?

My mechanic now charges an "ESD" fee when he changes my oil or sells me tires (Environmentally Safe Disposal Fee). Maybe I'll just add an "STW" charge on my invoices.

[solomon]

Will there be a separate new line item for the First Time Homebuyer Credit?

The IRS does not ask me how to design their forms every year, but I might suggest a single line for the combination of all refundable credits. Pouring out money in refunds to people who have never paid in seems to be in vogue for politicians nowadays.

Line 69 on the 1040 from Form 5405.

[Nashville]

Form 1040

Line 69 on the 1040 from Form 5405.

Are you finding this from a draft form? Have been looking at the IRS website and the only draft forms available are Sch D-1, H, and J.

[Burke]

If you go on the IRS website, you can pull up the 2008 Form 1040. The rebate line is on there under Tax Payments. Also, pull up 1040 instructions and go to page 62-63 and print them for worksheet. First Time Homebuyers Credit is right below it. Form 5405 available only in draft right now.

[solomon]

Are you finding this from a draft form? Have been looking at the IRS website and the only draft forms available are Sch D-1, H, and J.

http://www.irs.gov/taxpros/lists/0,,id=97782,00.html

Actually, the 1040 is out of the draft stage now.

http://www.irs.gov/formspubs/lists/0,,id=97817,00.html

[Grumpy]

Actually

Line 69 on the 1040 from Form 5405.

Line 69 is for first time homebuyer credit, calculated on Form 5405.

[Grumpy]

Recovery Rebate Credit

is on Line 70, with reference to pages 62 and 63 of the Form 1040 instructions.

[BOB W]

I hope I am reading the " Recovery Rebate Credit Worksheet" wrong... Please see page 62 of the 1040 2008 instructions> line # 4.

Please help me here!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! http://www.irs.gov/pub/irs-pdf/i1040gi.pdf

NEVER MIND>> LINE 2 SAYS TO SKIP LINES 3 & 4

[Grumpy]

I hope I am reading the " Recovery Rebate Credit Worksheet" wrong... Please see page 62 of the 1040 2008 instructions> line # 4.

Please help me here!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! http://www.irs.gov/pub/irs-pdf/i1040gi.pdf

Did you note that if you answer yes to Line 2 then you skip Line 4?

Also, my apology to Solomon. I misread his post about lINE 69.

[solomon]

Line 69 is for first time homebuyer credit, calculated on Form 5405.

That is what I said.