Draft Of 2008 Stimulus Credit Worksheet
New Line On The 1040 Will Spark Confusion Among Many Filers Next Year
It involves the 2008 tax rebate...payments folks received of up to $1,200 for couples and $600 for singles, plus $300 for each dependent child under age 17. Low-income S.S. beneficiaries and others were eligible for a $300 check.
The line is only for filers who now deserve more than what they received. The rebates were based on recipients' 2007 tax data and didn't reflect events in 2008 that could boost the amount such as a newborn baby, a drop in income for filers who made too much to get a full rebate and a person who is no longer a dependent.
But filers must use a complex 29-line worksheet to figure the right amount of the credit. Technically, folks will claim any extra rebate as a 2008 tax credit. And they'll have to scour their records for the IRS notice that explains their rebate. All this is bound to cause headaches in 2009 for taxpayers and preparers.
Kiplinger/Fairmark Press
It involves the 2008 tax rebate...payments folks received of up to $1,200 for couples and $600 for singles, plus $300 for each dependent child under age 17. Low-income S.S. beneficiaries and others were eligible for a $300 check.
The line is only for filers who now deserve more than what they received. The rebates were based on recipients' 2007 tax data and didn't reflect events in 2008 that could boost the amount such as a newborn baby, a drop in income for filers who made too much to get a full rebate and a person who is no longer a dependent.
But filers must use a complex 29-line worksheet to figure the right amount of the credit. Technically, folks will claim any extra rebate as a 2008 tax credit. And they'll have to scour their records for the IRS notice that explains their rebate. All this is bound to cause headaches in 2009 for taxpayers and preparers.
Kiplinger/Fairmark Press
posted by Milt Baker CPA | 10:08 AM
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