"Rebate madness"

[veritas]

Here is an excerpt I received from the state of Oregon this morning

"The Department of Revenue has begun to receive Oregon returns with “stimulus payment” written on the top of the form and no income (or less than the filing requirement) being filed. Please remember that individuals who are only filing for purposes of receiving the federal rebate are not required to file an Oregon return unless (1) income exceeds the Oregon filing threshold or (2) they are required to file a federal return for purposes other than the rebate."

Probably been smoking too much medical mj.

[Roland Slugg]

The rule of unintended consequences

Dear veritas

That's yet another example of fallout I hadn't thought of, and I doubt if any of the geniuses at Treasury or Congress did either. Oh, the bad laws we get when Congress rushes to act.

Since you like to quote Ronald Reagan, you might enjoy this favorite of mine: "My philosophy on the Cold War is very simple: We win ... they lose."

[thomtax]

I wonder how many of these were efiled, but the preparer did not realize that unless s/he suppressed the state, that it would file also? An easy overlook.

LT

[BOB W]

I wonder how many of these were efiled, but the preparer did not realize that unless s/he suppressed the state, that it would file also? An easy overlook.

LT

Been there done that>>>>> but I don't care, let the state work.................

[joanmcq]

My software doesn't file or prepare the state automatically (I don't have it set to automatically open state forms) so this would not be a problem!

Another idiotic act by the federal government that will have the states fuming and cost lots of bucks...

[Gary]

Arizona

In Arizona, a filer with only SS can get a refundable credit for $25, so it pays to file both Federal and AZ here.

[PIGLEE]

Rebate will cost Arizona.

I realized this yesterday doing a Stimulus Return, a couple filing will get a refund Arizona Refund check of $50.00. Arizona sends it out all the time, if they get an AZ Return.

I figured that if 2 million couples file an AZ return with the Stimulus Package, 2 million couples will get an AZ Refund of $50.00. That will cost the State of Arizona 100 million dollars. This will really blow Arizona's tight budget!!!! With all the retired people in Arizona it will probally cost the state a lot more.

[John of PA]

The worst is yet to come

For those of you like myself who file many extensions...........well the IRS is about to send letters out to all taxpayers telling them they must file by April 15 to get the advance rebate check (or wait until next years tax return to get it). I hope I am wrong, but there may be a panic by taxpayers that they do not want to file an extension so they can get thier check.

[JohnH]

CHange your cutoff date

I usually set March 20 or thereabouts as the cutoff date for extensions. This year I'm making it March 15, or maybe even March 10. Anything that comes in after that date automatically gets an extension - if we get it done fine, and if we don't then the Apr 15 date is already off the table.

[Jesse]

For those of you like myself who file many extensions...........well the IRS is about to send letters out to all taxpayers telling them they must file by April 15 to get the advance rebate check (or wait until next years tax return to get it). I hope I am wrong, but there may be a panic by taxpayers that they do not want to file an extension so they can get thier check.

Please, say it isn't so?! Really, they have to file by April 15?

[BP.]

Please, say it isn't so?! Really, they have to file by April 15?

Veritas gave us the link to the letter in another thread. Didn't see any mention there of a date. Check IRS FAQ page for stimulus payments. Says extension filers, or even those not on extension, will get the advance payment in 2008 if filed by 15 Oct 08.

[Jesse]

Answer is on the IRS Stimulus Payments FAQ page:

"Q. I have not yet filed my 2007 tax return. Can I still qualify for a stimulus payment in 2008?

A. Yes, but you must file a 2007 tax return. The IRS encourages you to file a return even if your income is low or much of your income is tax-free. File your return, if possible, by the regular April 15 deadline. If you file after April 15, with or without a tax-filing extension, your payment will be delayed. If you qualify for a payment, you can insure that you get it by filing your return by Oct. 15, 2008."

Whew, as I wipe my forehead, I was sweatin'. I thought I had read this but was not sure if it was IRS info or prior post someplace, either way I will have some extensions as usual, and don't need an extra guilt trip this year for someone not receiving the rebate because they don't have their sh!t together.

[Zee]

Please, say it isn't so?! Really, they have to file by April 15?

Here's what's posted on the irs.gov FAQ section on this issue:

Q. I have not yet filed my 2007 tax return. Can I still qualify for a stimulus payment in 2008?

A. Yes, but you must file a 2007 tax return. The IRS encourages you to file a return even if your income is low or much of your income is tax-free. File your return, if possible, by the regular April 15 deadline. If you file after April 15, with or without a tax-filing extension, your payment will be delayed. If you qualify for a payment, you can insure that you get it by filing your return by Oct. 15, 2008.

[Black Bart]

"Reefer Madness"

is apparently over (oops; scratch that -- I mean "Rebate Madness" -- kudos to Veritas for his catchy play on words).

I quickly got 25 or so of these and...poof...it's over with.

Oh well, I got thirty bucks a pop which I thought was reasonable enough (after all, they're some trouble and we're not social workers). It was a nice little tidbit while it lasted.

[JohnH]

Another wave - maybe two

Bart:
I think you'll see another rush in the near future. That first group got their info from the media and by word of mouth. The AARP Bulletin will be out in the next 5-7 days, and I wouldn't be surprised if it triggers another wave bigger than the first one.

Then there will be the publicity beginning around Apr 1 - "Be sure to file your stimulus return to get your rebate" emanating from government and from the chains. If this wave materializes it could be the worst, since many of the normal procrastinators will be clamoring for no extension this year at the same time you're fielding stimulus return inquiries. On top of all that you already have 25 retirees telling all their friends what a great guy you are and urging them to call you. It could get interesting.