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Posted by Caliban on April 14, 2008, 10:46 am
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OK.
Filed taxes a bit ago and thought they seemed high...however, a decent size
stimulus check will be coming for the wife and I.
I now realize why they seemed high. I forgot to apply a rather large tax
credit that we qualify for. Obviously, I'll file an amended return.
However, I note that, if I had filed and included this credit to begin
with, our stimulus payment would have been about half the size. So, will
we have problems relating to an amended return (applying a large credit)
and an overly-large stimulus payment? From the IRS site, it looks like the
stimulus payment shouldn't change at all. But will I have problems when I
file 2008's taxes next year?
--
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Posted by Paul Thomas, CPA on April 14, 2008, 11:20 am
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> Filed taxes a bit ago and thought they seemed high...however, a decent
> size
> stimulus check will be coming for the wife and I.
>
> I now realize why they seemed high. I forgot to apply a rather large tax
> credit that we qualify for. Obviously, I'll file an amended return.
> However, I note that, if I had filed and included this credit to begin
> with, our stimulus payment would have been about half the size. So, will
> we have problems relating to an amended return (applying a large credit)
> and an overly-large stimulus payment? From the IRS site, it looks like
> the
> stimulus payment shouldn't change at all. But will I have problems when I
> file 2008's taxes next year?
File your amended return whenever (in the next couple of months). It seems
they owe you (you over paid), so there's no "due date" to be worried about.
--
Paul A. Thomas, CPA
Athens, Georgia
--
<< ------------------------------------------------------- >>
<< 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 14, 2008, 11:27 am
Please log in for more thread options "Caliban" <wrote:
> Filed taxes a bit ago and thought they seemed high...however, a decent
> size
> stimulus check will be coming for the wife and I.
>
> I now realize why they seemed high. I forgot to apply a rather large tax
> credit that we qualify for. Obviously, I'll file an amended return.
> However, I note that, if I had filed and included this credit to begin
> with, our stimulus payment would have been about half the size. So, will
> we have problems relating to an amended return (applying a large credit)
> and an overly-large stimulus payment? From the IRS site, it looks like
> the
> stimulus payment shouldn't change at all. But will I have problems when I
> file 2008's taxes next year?
Well, congratulations on coming up with a question that's not easily
answered. I suppose it's too much to hope that you're talking about the
Child Tax Credit. If you are, relax. It's disregarded in the computation
of the stimulus payment and the 2008 credit.
The statute draws no distinction between original and amended returns when
determining the amount of the advance payment. It just says that the
payment is calculated based on 2007 numbers.
Regarding a reckoning on the 2008 return, it says that the 2008 credit is
reduced by the stimulus payment "made or allowed," but not below zero. In
general concept this means that if your stimulus payment based on your 2007
numbers was greater than the credit allowable for 2008 you don't have to pay
it back.
I don't see anything in the statute that authorizes a recovery of a stimulus
payment because of an amended return. That said, the ethical thing to do
would be to get the amended return filed ASAP and see what develops. I'd
also keep the excess where I could find it until the dust settles a year
from now.
--
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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Posted by Elle on April 14, 2008, 1:15 pm
Please log in for more thread options > Filed taxes a bit ago and thought they seemed
> high...however, a decent size
> stimulus check will be coming for the wife and I.
>
> I now realize why they seemed high. I forgot to apply a
> rather large tax
> credit that we qualify for. Obviously, I'll file an
> amended return.
> However, I note that, if I had filed and included this
> credit to begin
> with, our stimulus payment would have been about half the
> size. So, will
> we have problems relating to an amended return (applying a
> large credit)
> and an overly-large stimulus payment? From the IRS site,
> it looks like the
> stimulus payment shouldn't change at all. But will I have
> problems when I
> file 2008's taxes next year?
I think this question is going to come up a lot. So to be
clear for the archives, how about some clarifying
information? When you say "credit" above, do you mean a
number on lines 47-55 (line 52, the child Tax Credit
excepted) changed?
Are you using the IRS stimulus payment calculator linked at
http://www.irs.gov/newsroom/article/0,,id=177937,00.html#Calculator ?
If so, what stimulus payments does it give for (1) and (2)?
What formula, software, or web site are you using that gives
you the same numbers for the original and amended returns'
stimulus payments?
So far, I do not think the exact information for how this
will be treated is available. Verbage in the original
stimulus act bill and media reports say that, on 2008's tax
return, one will not have to pay back excess one received in
2007, no ifs ands or buts (so it seems... ). But that leaves
too much room for other people getting away with stimulus
payment fraud.
My bet is that you will pay the excess stimulus payment you
receive back, one way or another. E.g. it's possible the IRS
will catch the error on the original return (depending on
the specific credit) and send you the correct amount anyway;
or they'll get the amended return in time and make the
change; or, using a line on your 2008 tax return, you will
return the excess.
The goal is to try to be honest, so amend as quickly as
possible, and document any exchanges you have with the IRS,
preferably with something from them in writing.
A similar question arose recently where I am. A man filed a
stimulus payment 1040A. He put his only income, Supplemental
Security Income (SSI), into the Social Security benefits
line. But SSI is not income that counts towards the stimulus
payment. I have no idea whether the IRS is coordinating with
Social Security to track such income and see who is and is
not entitled to a stimulus payment. He is in a particularly
bad situation because he will not have to file a return for
tax year 2008 (in theory, based on his only income being
SSI) and because he is disabled. He has little idea how all
this works anyway.
--
<< ------------------------------------------------------- >>
<< 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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