Economic Stimulus Act of 2008

[Bees Knees]

Is anyone understanding from this how the $300 per child is going to work. I thought when they started talking about this that everyone with children was going to qualify for the child rebate.

Now it looks like that only people eligible for the child tax credit is going to get it. It also doesn't say if the Aditional Child Tax Credit is going to factor into the equation. So if someone was eligible for $500 of the $1000 child tax credit, then I am assuming they will not get the $300 for their child because the tax liability has already zeroed out. Or are they going to just say that if you received any amount of child tax credit then you qualify for the $300 extra per child.

From the update:

Special rules. In the case of certain taxpayers:
• The credit will not be less than $300 ($600 MFJ), and
• The credit will be increased by $300 multiplied by the number of children that qualify
the taxpayer for the child tax credit under Section 24(c).
The following taxpayers qualify for these special rules:
• The taxpayer has qualifying income of at least $3,000, or
• The taxpayer has a net income tax liability which is greater than zero, and gross
income which is greater than the sum of the basic standard deduction plus the
exemption amount (twice the exemption amount in the case of a joint return).

So you will note that it does not say you actually have to receive some benefit from the child tax credit. Your tax could already be zero and the child tax credit, and/or additional child tax credit does you no good.

The only requirements are you have to have a child that would qualify you for the child tax credit, and you either have at least $3,000 of qualifying income, or your tax liability is greater than zero with gross income in excess of the standard deduction and personal exemption.

[Zee]

President Bush has signed legislation. It's official.

[superman]

Does everryone have to file?

Even if the taxpayer does not have to file a normal tax return do they need to file this year just so the IRS know they exist so they would qualify for the FREE money? I pose this question for mainly the people living just off SS and no other source of income. I have heard conflicting information and just want to clearify before I start calling some clients that do not need to file but may want to this year.

[Larmil]

Ir-2008-18

Even if the taxpayer does not have to file a normal tax return do they need to file this year just so the IRS know they exist so they would qualify for the FREE money? I pose this question for mainly the people living just off SS and no other source of income. I have heard conflicting information and just want to clearify before I start calling some clients that do not need to file but may want to this year.

Says you MUST file to get rebate,

[Zee]

Even if the taxpayer does not have to file a normal tax return do they need to file this year just so the IRS know they exist so they would qualify for the FREE money? I pose this question for mainly the people living just off SS and no other source of income. I have heard conflicting information and just want to clearify before I start calling some clients that do not need to file but may want to this year.

It appears to me a return should be filed even if filing isn't necessary. How else would they qualify for an Advance Rebate? I'm also assuming they can be e-filed.

[clr]

Stimulus Payments: Instructions for Low-Income Workers and Recipients of Social Secur

http://www.irs.gov/irs/article/0,,id=179096,00.html

[Bees Knees]

Charge your regular fee!

OK, I’m not going to feel guilty charging people my minimum fee for filing a return with just Social Security benefits or VA benefits reported on line 20a and zero on line 20b, just so that they can get their rebate. I did that last year for people who wanted their telephone tax rebate.

If we don’t file a 2007 return for them to get their rebate check this summer, we will still have to file one in 2008 so that they can get their refundable credit. What’s the difference? They still have to PAY us for at least one year’s worth of tax preparation to get the money.

Don’t be cheap on your fees. This is not our fault, so stop thinking you have to perform some kind of community service at next to nothing rates.

[BOB W]

One of the reasons why we charge a new client the same as an old client is because we anticipate that we will not have to setup the client ever again. In the case of a one time client, setup has a value. What is it worth to you?

[JohnH]

Exactly the point

I know that not every new client I set up will return. However, if I know beforehand that the preparation is probably a one-time event then I factor that into what I charge - I generally increase the fee. Bob, you nailed it - there's little payback in setting up a one-time client at normal fees.

Add to that the fact that every time most of these clients hears about a friend of theirs getting their check, they will be calling to ask why they haven't received their check yet (I'm guessing there will be some sort of staging of when the checks are issued, probably by last name. But even if we tell them the schedule they won't remember it).

Many of them will also call just to let you know they got the check, or to ask why their check is less than the one their neighbor got. And I predict there will be some who fall through the cracks for one reason or another, will require some sort of follow-up, and won't want to pay for the extra work because they've "already paid you".

Dont' mean to be a pessimist, but I think it's less-than-desirable business. I don't intend to file them for free, but I will encourage anyone who calls to check into VITA or TCE & get it done for free. I also plan to have the phone numbers handy.

[BOB W]

John > I like the idea of having the VITA phone number handy. The more I think about this situation the more I don't want it. It will make me the bad guy no matter what I do. Charging client's parents $75-$90 or more> I'm a thief....what bad goodwill that will be .............

[Kong]

To Bee Knees

I am going to charge a maximun of $30.00 to one time clients in order for them to recieve whatever the goverment is willing to send them. I understand that we need to charge for our services but we more then make that up with our regular paying clients. We as individuals need to give back to the community which we serve. So what if I don't see them again, at least I gave alittle back.

[Gene V]

More information

This was e-mailed

There Economic Stimulus Plan will have minimal impact on 2008 calendar year income tax returns.



Taxpayers will reconcile the amount of the credit with the payment they receive in the following manner. They will complete a worksheet calculating the amount of the credit based on their 2008 income tax return. They will then subtract from the credit the amount of the payment they received in 2008. For many taxpayers, these two amounts will be the same. If, however, the result is a positive number (because, for example, the taxpayer paid no tax in 2007 but is paying tax in 2008), the taxpayer may claim that amount as a refundable credit against 2008 tax liability. If, however, the result is negative (because, for example, the taxpayer paid tax in 2007 but owes no tax for 2008), the taxpayer is not required to repay that amount to the Treasury. Otherwise, the checks have no effect on tax returns filed for 2008; the amount is not includible in gross income and it does not otherwise reduce the amount of withholding.



Thank you,



Brian Wozniak

IRS SB/SE CLD


Brian.Wozniak@irs.gov

[Snaggletooth]

Disability Payments

Is the term "social security recipients" extended to include people not of old age, but receiving disability payments from the social security administration?

[Black Bart]

Good question, Snag.

Is the term "social security recipients" extended to include people not of old age, but receiving disability payments from the social security administration?

I had one of these come in yesterday -- took a guess and told him yes (hope I don't have to eat my words).

One other thing -- does "qualifying income" refer only to earned income plus SS, VA, and RR benefits? Nothing for, say, a Schedule E landlord who's not on SS yet?

[betseyjane]

I have read varying things in different places - so I have a question that maybe someone here can answer. If my husband and I filed jointly, made under the $150k, but still owed $13 to the federal govt - will we be receiving this rebate?