Are we expecting a tax stimulus check?

[Kalhoun]

I’m confused. I know my weekly deductions are less due to a tax cut. But are we supposed to be getting a stimulus check this month in addition to the weekly cut?

[Whack-a-Mole]

@Kalhoun

I’m confused. I know my weekly deductions are less due to a tax cut. But are we supposed to be getting a stimulus check this month in addition to the weekly cut?

No clue.

I will say I am more than a little pissed that the government taxed my stimulus check from last year. I had no idea they’d do that so poof government wants $100+ back from the $450 they gave me.

Bastards. I can only hope some AIG exec will get a nice manicure with that.

[Baracus]

I am not aware of any official talk of getting a stimulus check.

@Whack-a-Mole

I will say I am more than a little pissed that the government taxed my stimulus check from last year. I had no idea they’d do that so poof government wants $100+ back from the $450 they gave me.

Are you sure about that? I have seen a number of people confused because their tax software showed that their expected refund decreased when they entered the amount of their stimulus check. That wasn’t because the check was taxed though. Rather the software assumed that you hadn’t received your check and added it to your expected refund until you told it otherwise.

[Fuzzy_Dunlop]

@Baracus

I am not aware of any official talk of getting a stimulus check.

Are you sure about that? I have seen a number of people confused because their tax software showed that their expected refund decreased when they entered the amount of their stimulus check. That wasn’t because the check was taxed though. Rather the software assumed that you hadn’t received your check and added it to your expected refund until you told it otherwise.

From http://www.irs.gov/newsroom/article/0,,id=179211,00.html

@The IRS

What is it? It’s an economic stimulus payment that more than 124 million households will receive. It’s not taxable, and it won’t reduce your 2007 or 2008 refund or increase the amount you owe when you file your 2008 return. Payments started in May and will continue through the end of 2008.

I’d be more than a little pissed if I filed my taxes wrong, too.

[KneadToKnow]

@Whack-a-Mole

I will say I am more than a little pissed that the government taxed my stimulus check from last year. I had no idea they’d do that so poof government wants $100+ back from the $450 they gave me.

What pissed me off was having to enter the entire amount of my state refund from last year when last year my ex-wife and I were married filing jointly and half of that refund went to her. No allowance for dividing it in half or anything, that I saw.

[Whack-a-Mole]

@Baracus

Are you sure about that? I have seen a number of people confused because their tax software showed that their expected refund decreased when they entered the amount of their stimulus check. That wasn’t because the check was taxed though. Rather the software assumed that you hadn’t received your check and added it to your expected refund until you told it otherwise.

Hmm…maybe I should start a new thread on this because now I am confused.

The IRS online filling I am using says the following:

Click this link to find out how much your 2008 stimulus payment was to enter in this box.

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.

Following that link it says my stimulus payment was $458.

When I enter that into the online filing software (http://www.free-tax-return.com) it INCREASES my payment to the IRS by $458!

Till you mentioned it I did not test it. Now I tested it I am so confused!

HELP!!!

ETA: On the summary form that adds it all up this is what changes:

Recovery rebate credit. 142 (higher final payment to IRS this way)
Recovery rebate credit. 600 (lower final payment to IRS)

[dracoi]

Whackamole, your software assumes you got no stimulus and that you deserve all $600 this year, for having not received anything last year. This year’s amount is reduced by what you got last year, so the software is making a faulty assumption. When you enter the correct number, the software corrects the amount you receive for this year. It’s like having a typo on your W-2 and having the tax “increase” when you fix the typo.

As for stimulus for next year… there won’t be any checks. Rather, it will be refundable credit on next year’s return. However, the goal is for the refundable credit to be offset by reduced withholding on your W-2. Thus, the net effect is $0 in the best-case scenario. (In the worst case scenario, you and your wife have withholding reduced by $800 total and your other sources of income disqualify you for the credit. Now you owe an extra $800 thanks to reduced withholding).

I’m livid when it comes to this “stimulus.” There are going to be a lot of very unhappy people next year.

[Kalhoun]

@dracoi

Whackamole, your software assumes you got no stimulus and that you deserve all $600 this year, for having not received anything last year. This year’s amount is reduced by what you got last year, so the software is making a faulty assumption. When you enter the correct number, the software corrects the amount you receive for this year. It’s like having a typo on your W-2 and having the tax “increase” when you fix the typo.

As for stimulus for next year… there won’t be any checks. Rather, it will be refundable credit on next year’s return. However, the goal is for the refundable credit to be offset by reduced withholding on your W-2. Thus, the net effect is $0 in the best-case scenario. (In the worst case scenario, you and your wife have withholding reduced by $800 total and your other sources of income disqualify you for the credit. Now you owe an extra $800 thanks to reduced withholding).

I’m livid when it comes to this “stimulus.” There are going to be a lot of very unhappy people next year.

Ok, now I’m really confused. I thought the reduced withholding was due to a reduction in taxes, meaning they’re taking less because they want less. You’re saying they’re taking less but they want the same amount?

[dracoi]

@Kalhoun

Ok, now I’m really confused. I thought the reduced withholding was due to a reduction in taxes, meaning they’re taking less because they want less. You’re saying they’re taking less but they want the same amount?

Yes, that’s basically right. The amount of tax due will not change.

There will be (for people who qualify) a $400 ($800 married) credit to offset the reduced withholding. The problem is that some people will have reduced withholding and then not qualify for the credit.

[suranyi]

@dracoi

Yes, that’s basically right. The amount of tax due will not change.

There will be (for people who qualify) a $400 ($800 married) credit to offset the reduced withholding. The problem is that some people will have reduced withholding and then not qualify for the credit.

To be fair, the vast majority of people will qualify for this credit, I believe.

Ed

[dracoi]

@suranyi

To be fair, the vast majority of people will qualify for this credit, I believe.

Ed

Yes, you’re right. Anyone with a single stream of income (or two streams for a married couple) will be fine. The people at risk are those with who have multiple jobs, take retirement distributions, sell stock, have investments, operate rental properties or own a business. So there will be a sizable minority who will be hurt by this move and not all of them are “rich” by the definitions of popular conception.