Stimulus

[Madhavok]

Bear with me if this has already been mentioned.
Had a friend file his taxes and he said there was a box for 08 stimulus. So he puts down $600 to go along with his $650 return for 09. Letting them know he had a $600 stimulus from 08. H&R Block calls him to say he'll only be getting a $50 refund this year. In essence, the stimulus was just and advance on the tax return? If so, what the **** was the point?!

 

[deskslave]

No idea if this is accurate or not, but I have no reason to doubt it.

http://www.consumerismcommentary.com/2009/01/02/filing-your-2008-taxes-with-the-economic-stimulus-recovery-rebate-credit/

The instructions for all three forms include a worksheet to help you calculate how much of a credit you should receive towards your 2008 tax due. By following the instructions on the worksheet, you can calculate the credit you should receive based on your 2008 tax situation, list the credit you received last year if any, and subtract the latter from the former to get the amount of the remaining credit owed to you.

If the result is a positive number, you can claim an additional credit. If the result is a negative number, you don’t have to pay back what you received in 2008. You get to keep the excess credit you received. In most cases, if you received a payment in 2008 for the economic stimulus, you will enter zero on this line.

To simplify everything, just enter “RRC” on this line on the tax form. This will instruct the IRS to calculate the recovery rebate for you. Also, if you file electronically, your software will ask you the appropriate questions to calculate the recovery rebate.

Just so it’s clear, the 2008 economic stimulus is a new credit that’s appearing on the 2008 income tax forms that are due in April 2009. Either you received your credit as an advance in 2008 (the “economic stimulus payment”) or you claim it when filing your taxes (the “recovery rebate credit”); thus, the net effect is the same.

The instructions for all three forms include a worksheet to help you calculate how much of a credit you should receive towards your 2008 tax due. By following the instructions on the worksheet, you can calculate the credit you should receive based on your 2008 tax situation, list the credit you received last year if any, and subtract the latter from the former to get the amount of the remaining credit owed to you.

If the result is a positive number, you can claim an additional credit. If the result is a negative number, you don’t have to pay back what you received in 2008. You get to keep the excess credit you received. In most cases, if you received a payment in 2008 for the economic stimulus, you will enter zero on this line.

To simplify everything, just enter “RRC” on this line on the tax form. This will instruct the IRS to calculate the recovery rebate for you. Also, if you file electronically, your software will ask you the appropriate questions to calculate the recovery rebate.

Just so it’s clear, the 2008 economic stimulus is a new credit that’s appearing on the 2008 income tax forms that are due in April 2009. <b> Either you received your credit as an advance in 2008 (the “economic stimulus payment”) or you claim it when filing your taxes (the “recovery rebate credit”); thus, the net effect is the same. </b>

So you don't put the $600 in that box, as far as I can figure.

 

[Angola!]

What if my $600 was kept by the IRS because I owed them money?

 

[Ace]

Whenever the IRS says "just to make it clear" they have lost me.

 

[slappy4428]

What if my $600 was kept by the IRS because I owed them money?

I'll hang up and listen too...

 

[mustangj17]

The way I understood it, the stimulus was taxable, but it wasn't like a loan or anything. So they aren't going to ask for $600 of a $600 stimulus back.

 

[Petrie]

The way I understood it, the stimulus was taxable, but it wasn't like a loan or anything. So they aren't going to ask for $600 of a $600 stimulus back.

Same here. Did TaxCut online, and the stimulus didn't seem to affect the amount of my return...?

 

[deskslave]

The way I understood it, the stimulus was taxable, but it wasn't like a loan or anything. So they aren't going to ask for $600 of a $600 stimulus back.

No, it wasn't taxable. I believe the previous one was, but this one wasn't.

Essentially, the way I understand it, the stimulus was a $600 credit on this year's taxes, paid in advance. If you didn't qualify at the time, but you do now for whatever reason, you're still entitled to the $600. If you DID qualify then, but don't now, they don't take it back.

If your refund this year is $200, then officially it's $800. But you already got $600 of it.

As for situations like Gola's, I would assume they kept the stimulus because it's easier than mailing you a check for $600 and then you mailing them one in return. So your credit was applied to last year's taxes, instead of this year's.

But I'm not a tax professional, so it's entirely possible I don't know what the hell I'm talking about.

 

[imjustagirl]

Don't trust H&R Block. Ever. You couldn't pay me enough money to go back to those ****ers. The number of people I know, including me, who got ganked by those people...**** 'em. I'm not sure they even take classes.

Go ANYWHERE else.

 

[Petrie]

Don't trust H&R Block. Ever. You couldn't pay me enough money to go back to those ****ers. The number of people I know, including me, who got ganked by those people...**** 'em. I'm not sure they even take classes.

Go ANYWHERE else.

Like their Web site?

I think this is the fourth year I've used TaxCut, and I've yet to have problems...*knocks on desk*

 

[Tommy_Dreamer]

Don't trust H&R Block. Ever. You couldn't pay me enough money to go back to those ****ers. The number of people I know, including me, who got ganked by those people...**** 'em. I'm not sure they even take classes.

Go ANYWHERE else.

Gee, my mother worked for H&R Block for more than 15 years. She even went to classes and all. Hell, she worked her way up to management. I have heard of people having "problems" with H&R Block. They do take their fair share of profit, but as does any process/business unless you do it yourself.

I myself have never had a problem in the years I've been to H&R Block, and even in the years since mom died, I've never had a problem with them.

 

[dooley_womack1]

Stimulus...not a clown car.

 

[Madhavok]

'H&R Block? Come on. I mean I don't even know what they do.'

 

[Steak Snabler]

I did my taxes tonight. That line is there, but it's nothing to worry about if you make less than $75,000 per year (which I think is most of us, but maybe I've grossly underestimated the average income of SportsJournalists.com members).

I did the 20-line worksheet and came up with zero as my final answer, which means it didn't affect me.

 

[imjustagirl]

Don't trust H&R Block. Ever. You couldn't pay me enough money to go back to those ****ers. The number of people I know, including me, who got ganked by those people...**** 'em. I'm not sure they even take classes.

Go ANYWHERE else.

Gee, my mother worked for H&R Block for more than 15 years. She even went to classes and all. Hell, she worked her way up to management. I have heard of people having "problems" with H&R Block. They do take their fair share of profit, but as does any process/business unless you do it yourself.

I myself have never had a problem in the years I've been to H&R Block, and even in the years since mom died, I've never had a problem with them.

I don't even know if the post still lives, but when I moved to Va. five years ago, I went to H&R Block because I had two states and moving costs and everything else and it was more than I could handle. All I know is I took my stuff in, they asked if I had the W-2s, I said "that's teh thing in your hand that says "W-2" on it, and they had to spend four minutes looking at it to determine it was.

I should have walked out.

 

[Tommy_Dreamer]

Don't trust H&R Block. Ever. You couldn't pay me enough money to go back to those ****ers. The number of people I know, including me, who got ganked by those people...**** 'em. I'm not sure they even take classes.

Go ANYWHERE else.

Gee, my mother worked for H&R Block for more than 15 years. She even went to classes and all. Hell, she worked her way up to management. I have heard of people having "problems" with H&R Block. They do take their fair share of profit, but as does any process/business unless you do it yourself.

I myself have never had a problem in the years I've been to H&R Block, and even in the years since mom died, I've never had a problem with them.

I don't even know if the post still lives, but when I moved to Va. five years ago, I went to H&R Block because I had two states and moving costs and everything else and it was more than I could handle. All I know is I took my stuff in, they asked if I had the W-2s, I said "that's teh thing in your hand that says "W-2" on it, and they had to spend four minutes looking at it to determine it was.

I should have walked out.

Unfortunately, you probably got the newb who had just graduated their tax class. I'm blessed that my mother is still remembered and loved by those that worked under her at H&R Block and when I moved back in Nov. 2007, I was lucky enough that someone recognized me as well and grabbed me up to prevent me from getting the newb treatment.

But if I was you, yeah, I would be jaded against them as well. That's just inexcusable.