2009 Tax refund vs. last year's stimulus check

Norm Apter

I know that someone asked about this a few weeks ago, however, I can't find that thread.

Here's my situation. In March, 2008, my wife and I filed jointly and were due for and received a tax refund of say $950 shortly thereafter. Now, in accord with our income level / level of tax refund, the total amount of our stimulus check last June (?) was $600.

OK, so fast forward to this year. This year we filed jointly once again and supposedly ought to be receiving a total tax refund of $1513.

I just checked our joint checking account today and saw that there was a deposit from the U.S. treasury for exactly $913 -- then it dawned on me that the difference between that figure and our anticipated return is the exact amount of the stimulus check we received last June: 600 even.

I guess I must have missed something there. Is this the way its working out for everybody? Or are there variables at work (i.e. is it because of our low-income bracket)? I didn't expect last year's stimulus check to be an up front "payment" against this year's tax return, but I guess thats what it seems to be. Not complaining, this just caught be me off guard (and dammnit, it throws a monkey wrench into my audio upgrade plans!).

Does anyone who knows something about this mind going over it again? (even though its been covered here before).

Thanks,

Norm

ESavinon

Yes. Last year's stimulus check was an advance on 2008's income tax return.

Norm Apter

Thanks for confirming.

I don't know how I missed that. I feel like I'm fairly well informed regarding national news but this one totally slipped under my radar.

LessisNevermore

No refund reduction here, got the full amount.

danger boy

what if last years stimulus check was more than your return for this year? will you own them the shortage amount?

Ender

ESAVINON wrote: »

Yes. Last year's stimulus check was an advance on 2008's income tax return.

Er... no. Lol. I do taxes for a living for now and that is just a completely wrong statement. The stimulus check is yours now and forever (unless you used it lol).

What most likely happened is that the tax preparer (whoever it was) forgot to put down that you received the stimulus payment last year (whatever program was used should have had a text field in which you state the amount that you received for the stimulus). If the government forgot to send you your stimulus check last year, you are supposed to receive the check this year. However, if you forgot to tell the program that you received the stimulus payment when you did, then the program will think the government owes you the stimulus check. Therefore, your return will come out with the refund + stimulus check when in reality, then refund should just be... refund.

Check your 1040 and make sure the Recovery Rebate Credit (line 70, I believe) is blank if you already received your stimulus. If you received your full amount and the line 70 has a number, then the return was done wrong.

The IRS most likely recognized this and sent you your actual refund without the stimulus check amount.

Also, you can check the IRS website to see how much you got last year, in case you're not sure: https://sa1.www4.irs.gov/irfof/IRServlet?app=IRACTC&selectLanguage=en

Norm Apter

Ender wrote: »

Er... no. Lol. I do taxes for a living for now and that is just a completely wrong statement. The stimulus check is yours now and forever (unless you used it lol).

What most likely happened is that the tax preparer (whoever it was) forgot to put down that you received the stimulus payment last year (whatever program was used should have had a text field in which you state the amount that you received for the stimulus). If the government forgot to send you your stimulus check last year, you are supposed to receive the check this year. However, if you forgot to tell the program that you received the stimulus payment when you did, then the program will think the government owes you the stimulus check. Therefore, your return will come out with the refund + stimulus check when in reality, then refund should just be... refund.

Check your 1040 and make sure the Recovery Rebate Credit (line 70, I believe) is blank if you already received your stimulus. If you received your full amount and the line 70 has a number, then the return was done wrong.

The IRS most likely recognized this and sent you your actual refund without the stimulus check amount.

Also, you can check the IRS website to see how much you got last year, in case you're not sure: https://sa1.www4.irs.gov/irfof/IRServlet?app=IRACTC&selectLanguage=en

Thanks for bringing to my attention the Recovery Rebate Line.

I think I see the source of the problem. Yes, we did receive the full amount of our stimulus check.

We used a 1040A form -- actually my wife used Turbo Tax -- but somehow $1200 got entered on that Recovery Rebate line (when in fact we only received $600) and I didn't catch it before we sent it off (I'm looking at a copy of teh form we made before sending it). I've never used Turbo Tax but she claims that she did not directly enter this amount but somehow Turbo Tax calculated it. Nevertheless, neither of us caught this error before sending it off.

I realize that its probably not kosher to ask tax advice on an Audio board, but is there anything we can do to rectify the situation given what stage we are in (i.e. already filed and received part of what is truly due).

If you have any advice, please let me know.

Ender

Lol. Pm'd you. Let me know if you need any further advice (but through pm in case it is against Polk Audio policy or something).

Note: I refuse to give any shady advice, so don't worry about shadiness. I always follow standard IRS procedure (except gray areas, but those are relatively for most people).

Norm Apter

Got it (and replied), thanks.

Maybe I'll be able to pick up that dream CD player, after all.

Ender

Ender wrote: »

Lol. Pm'd you. Let me know if you need any further advice (but through pm in case it is against Polk Audio policy or something).

Note: I refuse to give any shady advice, so don't worry about shadiness. I always follow standard IRS procedure (except gray areas, but those are relatively for most people).

Er... I meant to say relatively few. Lol. "Relatively for most people"? Terrible.

Anyhow, I replied back. I sure hope so. I know my refund is basically paying for my SDA-to-be.