EVOLICARUS

so i was going through turbo tax questions tonight and i see we are getting taxed on our Stimulus check from last year. What BS!!!

Gfaze

I don't get it, when they sent it out they said that it would be tax free.

T Ho

Everybody f''s up the understanding of this.

You are not getting taxed on it. The stimulus check was an advance on your taxes. So, when accounting for it, the tax rules show the stimulus being given on the return, and then you put in the amount that you received. This adds up to $0, so it has no effect on your return. It may make the number in Turbotax go down, but you are not missing out on any money- instead, you are thinking that you get to double-dip.

Since you are not a high-paid international banking executive, you will not be getting handed any free money.

doopstr

I'm going to get stimulated an extra $300 when I do my taxes because I had another kid born last year.

TS_eXpeed

I'm getting my stimulus check this year because of an error on the IRS's part. They said they couldn't send me one last year because they weren't printing anymore checks, but I would get it this year.

LuvMyTSX

How much have you spent on diapers?

FiftyFive

You already got your W2?

imj0257

iTrader: (1)

^ I already got my W2

pebe

I'm sure at least triple that. I know I have 8 more months of formula!

spdy0001

Well this will suck because I normally try to break even, so if they already "gave" me $600 then I will end up owing them $600

gr8ness97

iTrader: (5)

Lame

FiftyFive

Hm, still waiting to get mine.

chill_dog

My company doesn't mail W2's until almost the last possible day

TzarChasm

No that's not how it works. You will still owe the same amount you would normally have owed.

thunder04

iTrader: (1)

According to http://www.factcheck.org/askfactchec...t_taxable.html

(key points are in bold)

Q: Is the economic stimulus payment taxable?
More than 130 million taxpaying households will be eligible for economic stimulus payments in May 2008. Is this considered taxable income?

A: No.
Like most things involving the IRS, the 2008 stimulus payments generate a lot of questions, details, exceptions and paperwork. On the face of it, the idea is simple: If you file your 2007 taxes with at least $3,000 of taxable income, you will be eligible for a minimum payment of $300 (and a maximum of $600). Those with high incomes may not receive a payment, or may get a lower amount. But that doesn't eliminate the IRS' need for a multi-part Frequently Asked Questions list.

The answer to this one, at least, is fairly clear. The payment is not included in your tax refund check, but it is not taxable income. You won't have to pay taxes on it in 2008, and it will not reduce your 2008 refund. The IRS does recommend keeping a copy of the official notice detailing the amount of your payment – for your records, of course. Would you expect anything else?

–Jess Henig

Update, March 12: Some readers have written to us to say some states would tax the stimulus payments; others have insisted that we were wrong and that these payments would be taxed on their 2008 federal tax returns. However, neither allegation is correct.

First, the stimulus payment is not taxable at the state level. Verenda Smith at the Federation of Tax Administrators says the confusion stems from the fact that some states offer a deduction for federal taxes paid. If an individual’s federal tax payment goes down, so will the amount of the deduction, which means that person would be paying slightly more in state taxes. That’s not a tax on the stimulus payment, but it reduces the deduction that’s intended to defray federal tax expenses.

Iowa and Alabama, which allow full deductions for federal taxes, and Missouri, which allows a partial one, are already trying to revise their laws so that the deduction isn’t affected by the stimulus payment.

Second, the stimulus payment will not be considered taxable income on 2008 returns, and it won’t affect the amount a taxpayer owes. The only reason a taxpayer might have to disclose how much he or she received on the 2008 return is if the individual didn’t qualify for the full payment in 2007 and believes he or she did qualify in 2008. Eric Smith (no relation) at the IRS explains: “It’s a one-time credit, but you get two shots at it.” If a taxpayer isn’t eligible for a payment, or doesn’t qualify for the maximum payment, based on the 2007 return, that taxpayer will have a chance on the 2008 return to show that he or she is eligible for the remainder. (Those who receive the refund in 2007, but aren’t eligible in 2008, won’t need to pay it back.) To claim a full or partial payment for 2008, taxpayers will need to know how much they did or didn’t get for 2007.

For further clarification, contact a tax professional or call the IRS’ individual assistance line (1-800-829-1040).

Bearcat94

It's not "free" money, it's *my* money. And beleive me, I worked my ass for that 600 bucks or whatever it was.

If they were going to give it back, they shouldn't have taken it from me in the first place.

thunder04

iTrader: (1)

Lol, that's not exactly what I meant...so I edited my post.

paz840

iTrader: (2)

what stimulus check?

Bearcat94

Haha - too slow. :wink:


BTW - I did NOT "work my ass" for that money.

I did "work my ass off" for that money though.

Although, if I had the ass for it, the former would've probably been easier and more lucrative.

dallison

not taxable, turbotax is wrong

RaviNJCLs

iTrader: (4)

Correct.

thunder04

iTrader: (1)

"The only reason a taxpayer might have to disclose how much he or she received on the 2008 return is if the individual didn’t qualify for the full payment in 2007 and believes he or she did qualify in 2008. Eric Smith (no relation) at the IRS explains: “It’s a one-time credit, but you get two shots at it.” If a taxpayer isn’t eligible for a payment, or doesn’t qualify for the maximum payment, based on the 2007 return, that taxpayer will have a chance on the 2008 return to show that he or she is eligible for the remainder."

So...Turbo Tax asks for the information to just so it can check to see if you are eligible for any more.

juniorbean

iTrader: (5)

Paying an accountant to do my taxes for the win. This way I do not need to worry about this shit...

svtmike

+1

JediMindTricks

i'd like another stimulus check.

svtmike

You are aware that a "stimulus" is not the same thing as a "prostate", aren't you?

dallison

i show up with all my papers and we go back a week later to pick up the packet. Well worth the fees

spdy0001

You are a special case because of your business

For the average taxpayer like myself paying someone to do your taxes is a huge waste of money. I realized this one year when someone convinced me to go to their tax person so that I could get more money back. Hell I paid that tax person more than they extra little bit they got me so in the end I lost

For me I sit at my computer with H&R block's free software and in about an hour im done. No need to make an appointment and carry all my papers to some person who will likely use the same kind of software.

svtmike

I spend 80% of my tax prep time gathering the papers, 20% with the software.

97BlackAckCL

iTrader: (6)

gatrhumpy

iTrader: (1)

Onlinetaxes.com FTMFW!

subinf

Same here. I supposed I should do them once just so I know how they work, but having someone else do it is so much easier.

hdcolumbus

TS_eXpeed

It's really easy for me right now so I don't mind, but once I start doing itemized returns, then that definitely might be a consideration.

Bearcat94

I TOTALLY agree.

When we got our first house and were able itemize I thought, "Uh oh, too complicated. Have some one do it for me."

Went to H&R Block and $50 later, I was like "*That's* it? WTF? Never again." And I've done my own ever since.

EVOLICARUS

LOL!! when i bought my house i did the same thing. I saved every F'ing receipt. And had HR block look at it and they gave me my return i was pissed that i spent 125 dollars for no extra return for all the time i spent getting all of my papers and whatnot. Last year did it myself through turbo tax and saved money and ended with a larger return. go figure

PortlandRL

I got my W2 on payday (Monday).

Sarlacc

Anyone else in Cali hear about the bullshit about possibly getting an IOU instead of an actual refund check this year

jupitersolo

I would change my deduction rate fast if I was in California.

Sarlacc

I'm waiting to see what happens...this was the year my wife is supposed to get a big refund because of buying the condo.

With as bad as my industry has been hit lately...we, like MOST of cali, will actually need OUR money back.

This state has been run into the ground by many a dumb motherfucker. Sad that Ah-nuld is the one taking the blame for everything.