Anyone want a simple rebate calculator?

[Zee]

Here's a link:

http://www.chateaumezcal.com/2008-tax-rebate.html

[thomtax]

Thanks for link.

LT

[Bees Knees]

Errors

The linked rebate calculator is not entirely accurate. It does not include earned income from a partnership or a farm. And, net income tax liability for purposes of the rebate is not line 57 of Form 1040.

[Zee]

The linked rebate calculator is not entirely accurate. It does not include earned income from a partnership or a farm. And, net income tax liability for purposes of the rebate is not line 57 of Form 1040.

"Good Eye" (as every parent tells their child missing a baseball swing). I guess you're saying it should be Line 63? If so, I'll contact the author of the calculator.

[BOB W]

But we as preparers would know which line to put the info on. I'm not going to give this to my tax client.

[BP.]

"Good Eye" (as every parent tells their child missing a baseball swing). I guess you're saying it should be Line 63? If so, I'll contact the author of the calculator.

Not line 63 either.

From TTB's Update page:

"Net income tax liability. The term net income tax liability means the regular tax liability, plus any additional tax under AMT, minus any nonrefundable personal and other credits (but not reduced for the child tax credit)."

[bertrans]

You ladies and gentlemen are a fantastically effective and generous group!! Thank you all for your comments. Well done!

[bertrans]

The linked rebate calculator is not entirely accurate. It does not include earned income from a partnership or a farm. And, net income tax liability for purposes of the rebate is not line 57 of Form 1040.

Mr Knees/Bees:

You, Sir, are simply outstanding!!

[Zee]

Thanks everyone. I sent a note to the author of the worksheet, but don't know whether he'll revise it or not. I know it's not his business, he's just trying to help. If he does change it, I'll add a new link in this post.

[bruehaus]

Ineligible individuals

The rebate calculator assumes that the taxpayer is eligible to receive a rebate. Taxpayer is ineligible if claimed as a dependent, a nonresident alien, or an estate or trust. Author should add a question "Are you eligible to receive a rebate?" Other than that, I like the concept. Almost every tax interview I've done includes at least a minute about the rebate. Ouch!!!

[Zee]

An update from the author of the calculator

I've decided to post the author's response to suggestions/comments on the calculator. I invited him to respond on this string, but he asked that any feeback be routed through me. He just doesn't have enough time to participate in another forum, and not a lot left on cleaning the calculator up.

He does have some questions. Please help answer those questions with a post.

Here's his response:

Good morning John,

I think you are correct about the definition of earned income, although this doesn't affect the calculator (if you put in the correct values ). I will update the line-number references and the (new) explanation of various fields that appears below the calculator. (Look at the current version of the calculator, if you haven't yet this morning, for this enhancement.)

I discovered another, significant, problem in the calculations. I was applying the "Special Rules" (for minimum rebate amounts) to all taxpayers, not just the ones defined in Paragraph 2. That has now been fixed.

If "net income tax liability" does NOT appear on a line number, it is going to be tricky for laymen to use the calculator. Am I correct that it is line 57, less any child tax credit? I also need to specify the line numbers for forms 1040A and 1040EZ.

I have another question. Please look at Sec. 6428(b)(2)(B)(ii) of the latest house bill (click here). Do they mean unadjusted gross income or AGI. If the former, the calculator will require an additional field, and a slight modification in the formula!

Better "picky" than wrong. I received the following email from my "elected representative" today. Apparently Congresspersons don't understand the law either:

"I also urge you to file your taxes early. The earlier you file your taxes this year, the sooner you will receive your tax rebate as part of the Economic Stimulus package that passed the House and was signed into law by the President yesterday. The stimulus package will provide tax relief to qualified taxpayers of up to $300 per individual and $600 per family. To receive this rebate, you must file a tax return this year for your 2007 taxes. For more information and to see if you qualify, click here."

Also, do I need to put a disclaimer (such as you have at the end of your email) with the calculator?

I'm a little sorry that I started on this project. I'm spending far to much time on it (three days so far), and it's all for free.

Carl

[bertrans]

The rebate calculator assumes that the taxpayer is eligible to receive a rebate. Taxpayer is ineligible if claimed as a dependent, a nonresident alien, or an estate or trust. Author should add a question "Are you eligible to receive a rebate?" Other than that, I like the concept. Almost every tax interview I've done includes at least a minute about the rebate. Ouch!!!

TP is also ineligible if he has an invalid SSN, an ITIN, an ATIN, or any other identifying number not issued by SSA.