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Posted by njoracle on April 16, 2008, 10:51 am
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A self employed person had a bad year in 2007 and had less then $3000
income for 2007. Therefore, the person won't be eligible for a stimulus
rebate. They expect 2008 income to be substantially higher then $3000.
Will they be eligible to get the rebate in 2008 because they weren't
eligible in 2007? The IRS FAQ's have a vague reference to this as a
possibility but I'm not clear on the details.
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Posted by Paul Thomas, CPA on April 16, 2008, 1:13 pm
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>A self employed person had a bad year in 2007 and had less then $3000
>income for 2007. Therefore, the person won't be eligible for a stimulus
>rebate. They expect 2008 income to be substantially higher then $3000. Will
>they be eligible to get the rebate in 2008 because they weren't eligible in
>2007? The IRS FAQ's have a vague reference to this as a possibility but I'm
>not clear on the details.
Yes. The bribe err......economic stimulus rebate check.......sent out in
2007 is an advance on a 2008 credit.
When all of us file the 2008 return (early 2009), we'll compute the amount
of the 2008 economic stimulus credit, and then subtract the amount received
in advance (in 2008). For most people it'll be even, for some they'll get
some extra amount however the math works out.
So if your friend has more income in 2008, and qualifies for $600, but
received $0, he'll get that much more tacked on to his refund, or owe that
much less.
Other examples would be a family that bore a child in 2008, would see the
extra $300 in their 2008 return.
--
Paul A. Thomas, CPA
Athens, Georgia
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<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
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Posted by Paultry on April 16, 2008, 2:10 pm
Please log in for more thread options Paul Thomas, CPA wrote:
> Other examples would be a family that bore a child in 2008, would see the
> extra $300 in their 2008 return.
So an amorous first quarter may have had a financial motive?
:-)
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
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Posted by Paul Thomas, CPA on April 16, 2008, 4:55 pm
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> Paul Thomas, CPA wrote:
>
>> Other examples would be a family that bore a child in
>> 2008, would see the extra $300 in their 2008 return.
>
> So an amorous first quarter may have had a financial motive?
Sex for money? Who does that.
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<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
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Posted by Phil Marti on April 16, 2008, 1:37 pm
Please log in for more thread options "njoracle" wrote:
>A self employed person had a bad year in 2007 and had less then $3000
>income for 2007. Therefore, the person won't be eligible for a stimulus
>rebate. They expect 2008 income to be substantially higher then $3000. Will
>they be eligible to get the rebate in 2008 because they weren't eligible in
>2007?
Yes.
The stimulus payment is actually an advance payment of the estimate, based
on your 2007 return, of a 2008 tax credit. Any amount of the 2008 credit
that you didn't receive as a stimulus payment will be credited on your 2008
return.
--
Phil Marti
Clarksburg, MD
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
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