The Entertainer Posted February 3, 2009 Report Share Posted February 3, 2009 I finished my taxes over the weekend and I used Turbo Tax. For those that have done them, was your refund amount reduced my the 2008 Stimulus payment amount? Mine was. After transferring my information from my 2007 Turbo Tax files, one of the first questions that pops up is "Did you receive a Stimulus Payment in 2008?" I answered yes. It then ask, "How much?". I enter in the amount and click continue and the next thing I know is that my refund is reduced by that exact amount. I went online and tried the free editions of both Turbo Tax and H & R Tax Cut, and they both do the same thing too. Is it just me or is anybody else getting this? I have done some research and the IRS website spins the 2008 Stimulus law around so much. One place says the 2008 payment is a "Tax Refund Advance". The next place I look says that the payment should not be counted as additional income (No Shit!) and shouldn't impact your 2008 refund. There is even one place on the IRS website that states "No, the stimulus payment will not reduce your refund or increase the amount you owe when you file your 2008 tax return. The combined amount you received in the form of an economic stimulus payment plus any additional amount you receive, if any, in the form of a recovery rebate credit is independent of the normal tax you would have paid." Some links that I have found about the Stimulus Payment: [url="http://www.irs.gov/newsroom/article/0,,id=177937,00.html"]http://www.irs.gov/newsroom/article/0,,id=177937,00.html[/url] [url="http://www.irs.gov/newsroom/article/0,,id=179181,00.html"]http://www.irs.gov/newsroom/article/0,,id=179181,00.html[/url] [url="http://www.irs.gov/newsroom/article/0,,id=201641,00.html"]http://www.irs.gov/newsroom/article/0,,id=201641,00.html[/url] Link to comment Share on other sites More sharing options...
Jason Posted February 3, 2009 Report Share Posted February 3, 2009 My refund was not reduced by my stimulus check. Link to comment Share on other sites More sharing options...
Vol_Bengal Posted February 3, 2009 Report Share Posted February 3, 2009 Mine wasn't either - I used Turbo Tax online. Have for the last 5 years... I initially thought it would then did some research last fall where they stated it wouldn't so I watched it very closely as I worked through it. And, yes, that question about the stimulus was right at the very front right after personal information was verified... Link to comment Share on other sites More sharing options...
CatScratchFever Posted February 3, 2009 Report Share Posted February 3, 2009 I got a lower refund this year as well, by approximately the amount of the rebate, so I looked into it further, suspecting the same thing you did. The result: my total taxes owed this year was slightly higher because I made more money. The total amount deducted from my paycheck was lower than last year. These two things working together resulted in my lower refund. It had nothing to do with the stimulus. After all was said and done, the total amount of tax I paid this year vs. last as a percentage of my income remained about the same. No significant difference. As much as I hate the IRS and would like something else to make me angry at them, there is nothing unusually crooked going on as it relates to the last years stimulus check. I suggest you run the same calculations I did and see what happens. FYI, I used TurboTax as well. Link to comment Share on other sites More sharing options...
Jason Posted February 3, 2009 Report Share Posted February 3, 2009 [quote name='The Entertainer' post='744040' date='Feb 3 2009, 07:35 AM']I finished my taxes over the weekend and I used Turbo Tax. For those that have done them, was your refund amount reduced my the 2008 Stimulus payment amount? Mine was. After transferring my information from my 2007 Turbo Tax files, one of the first questions that pops up is "Did you receive a Stimulus Payment in 2008?" I answered yes. It then ask, "How much?". I enter in the amount and click continue and the next thing I know is that my refund is reduced by that exact amount. I went online and tried the free editions of both Turbo Tax and H & R Tax Cut, and they both do the same thing too. Is it just me or is anybody else getting this? I have done some research and the IRS website spins the 2008 Stimulus law around so much. One place says the 2008 payment is a "Tax Refund Advance". The next place I look says that the payment should not be counted as additional income (No Shit!) and shouldn't impact your 2008 refund. There is even one place on the IRS website that states "No, the stimulus payment will not reduce your refund or increase the amount you owe when you file your 2008 tax return. The combined amount you received in the form of an economic stimulus payment plus any additional amount you receive, if any, in the form of a recovery rebate credit is independent of the normal tax you would have paid." Some links that I have found about the Stimulus Payment: [url="http://www.irs.gov/newsroom/article/0,,id=177937,00.html"]http://www.irs.gov/newsroom/article/0,,id=177937,00.html[/url] [url="http://www.irs.gov/newsroom/article/0,,id=179181,00.html"]http://www.irs.gov/newsroom/article/0,,id=179181,00.html[/url] [url="http://www.irs.gov/newsroom/article/0,,id=201641,00.html"]http://www.irs.gov/newsroom/article/0,,id=201641,00.html[/url][/quote] Before you blame your stimulus check, do your taxes on paper. I don't think that check is even mentioned on the 1040 long form. Link to comment Share on other sites More sharing options...
|Bunghole| Posted February 3, 2009 Report Share Posted February 3, 2009 Chiming in to add that we did ours on TurboTax too, and our refund was unaffected by the stimulus check. That may be because we lied and checked "no", though. Just kidding. Link to comment Share on other sites More sharing options...
Montecore Posted February 3, 2009 Report Share Posted February 3, 2009 Haven't had a chance to check this out yet, but found this online ... [quote]Like many Americans, my wife and I received an economic stimulus check last year. We received the full check - $600 each, for a total of $1,200. When I started filling out our tax return with TurboTax I noticed there is a section to enter the amount of your stimulus check. When I did so, the amount of our tax return dropped by the exact amount of our stimulus check. At first I thought I was losing out on money. Then I remembered why it appears this way. How the Economic Stimulus Check Affects your 2008 Tax Return The stimulus check was not free money like many people assumed. The stimulus was actually a change to the tax code that was to take effect for the 2008 federal tax season (taxes filed this year). The new tax code eliminated the 10% tax bracket. The economic stimulus package was a change in the tax code that eliminated the 10% bracket for the first $6,000 of taxable income in 2008. However, the US Government wanted to give its citizens the money up front in the hopes they would go out and spend it to stimulate the economy. In some ways, the stimulus check was like an advance payment for the changes that took affect for the 2008 tax season. How tax software programs handle the stimulus check. Commercially available tax software such as TurboTax, TaxCut, etc. will fill out your tax return based on the 2008 federal tax code – eliminating the 10% tax bracket from the first $6,000 of your income. When you input your information, the tax program automatically gives you that additional $600 (10% of $6,000 for single filers) as part of your tax return. When you input the amount of your economic stimulus check into the tax program you use, the software will reduce your 2008 tax rebate by that amount because you have already received that money. Call it an advance on your tax return if you will.[/quote] [url="http://cashmoneylife.com/2009/01/30/how-the-economic-stimulus-check-affects-your-2008-tax-return/"]Website[/url] Link to comment Share on other sites More sharing options...
The Entertainer Posted February 3, 2009 Author Report Share Posted February 3, 2009 [quote name='Jason' post='744112' date='Feb 3 2009, 01:04 PM']Before you blame your stimulus check, do your taxes on paper. I don't think that check is even mentioned on the 1040 long form.[/quote] You are correct, the long form or paper form does not do this. [quote name='Montecore' post='744215' date='Feb 3 2009, 05:50 PM']Haven't had a chance to check this out yet, but found this online ... [url="http://cashmoneylife.com/2009/01/30/how-the-economic-stimulus-check-affects-your-2008-tax-return/"]Website[/url][/quote] Thanks for link! That is exactly what happened. Link to comment Share on other sites More sharing options...
STRAYCAT Posted February 4, 2009 Report Share Posted February 4, 2009 [quote name='Bunghole' post='744120' date='Feb 3 2009, 01:38 PM']Chiming in to add that we did ours on TurboTax too, and our refund was unaffected by the stimulus check. That may be because we lied and checked "no", though. Just kidding.[/quote] [img]http://consumerist.com/assets/resources/2007/03/alcapone.jpg[/img] :brow: Link to comment Share on other sites More sharing options...
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