Federal Tax Rebate/Refund Question

[dex]

I just finished doing my taxes - I owe about $495 in Fed Taxes on a AGI of $14K - Turbotax tells me I will be getting a rebate of $495. I did my mother's taxes same basic story.

Neither of us had wage income.

Does this sound right?

[ziggy29]

Quote:

Originally Posted by dex I just finished doing my taxes - I owe about $495 in Fed Taxes on a AGI of $14K - Turbotax tells me I will be getting a rebate of $495. I did my mother's taxes same basic story. Neither of us had wage income. Does this sound right?

Sounds about right to me. I don't think it matters if it's not wage income.

If you're single and taking the standard deduction on exactly $14,000 of ordinary income, you'd have $5,350 on the standard deduction and $3,400 for a personal exemption for a total of $8,750 in deductions. That would leave $5,250 of taxable income, all of it in the 10% bracket for a tax burden of $525. (So your $495 is ballpark for that income level.) Your rebate is capped at the amount of income tax you paid, if I understand it correctly, so you'd get a $525 rebate in my example (or $495 in your case).

[dex]

Thanks for the reply - it just sounded a bit off for me to send in the same amount they will be sending me back in the form of a rebate.

[jazz4cash]

So......How does Turbotax know about the rebate? My TT did not give any references to the stimulus rebate. I probably have not downloaded any updates since I installed the program from a CD.

[W2R]

Quote:

Originally Posted by jazz4cash So......How does Turbotax know about the rebate? My TT did not give any references to the stimulus rebate. I probably have not downloaded any updates since I installed the program from a CD.

TT doesn't' have to know about the rebate. The rebate is sent separately from any tax refund, and it will be based on your return.

[pie2008]

I think the update to TurboTax will give info on the rebate. I just filed with TurboTax Online this week, and there was a section about the rebate and what we would receive. It also gave us the option of having a check mailed or having the rebate direct-deposited into our account.

[jazz4cash]

Quote:

Originally Posted by Want2retire TT doesn't' have to know about the rebate. The rebate is sent separately from any tax refund, and it will be based on your return.

I understand, but dex mentioned TT "told him" he was eligible whereas my TT was clueless about the rebate. I use the CD version of the software rather than the online version and I have not downloaded any updates, so maybe that's why. Thing is, I'm mostly just curious about TT since I don't really care about the stimulus rebate as I feel a bit guilty about getting it. I feel better when I realize it's a tax cut and Im going to utililize (not spend) it better than Uncle Sam, tho. Probably my last yr using TT.

[W2R]

Oh ok, I didn't understand.

There is a very simple calculator on the Internal Revenue Service website that will tell you if you are eligible and what your rebate will be, if that is any help. You do have to type in a few numbers from your tax return (4, I think).

[Bikerdude]

Quote:

Originally Posted by jazz4cash I since I don't really care about the stimulus rebate as I feel a bit guilty about getting it.

I'll give you my address and you can send it to me. I don't have a guilty bone in my body .

[FIREd]

Before about March 1st, there was no mention of the tax rebate on Turbotax online. It was added around that time in order to let people know what size rebate they could expect based on their 2007 return. If you bought Turbotax on CD, you may need to download the updates.

[jazz4cash]

Quote:

Originally Posted by Bikerdude I'll give you my address and you can send it to me. I don't have a guilty bone in my body .

heh,heh, heh...DW does not share my feelings on this! Really I guess Im more po'd with TT than anything....they are denying my mail-in rebate claiming I did not include purchase receipt. I sent original of everything Staples gave me. Im writing off the 7 bucks and will try TaxCut or something else next year. Can't say I did not get my money's worth since all 5 members of household were required to file this year.

[Twinkle Toes]

Quote:

Originally Posted by Want2retire Oh ok, I didn't understand. There is a very simple calculator on the Internal Revenue Service website that will tell you if you are eligible and what your rebate will be, if that is any help. You do have to type in a few numbers from your tax return (4, I think).

Only income I have is passive. I tried using the Internal Revenue Service calculator to determine whether I will bet a stimulus check. The IRS calculator thinks I failed to include income and puts me in a loop to go back and "properly" fill out the information requested.

Anyone else go through this exercise? No stimulus check for me...even though I will be paying federal income tax this year.

[FIRE'd@51]

Quote:

Originally Posted by Twinkle Toes Only income I have is passive.

I believe you need either earned income or SS to qualify for the rebate.

[LOL!]

Quote:

Originally Posted by jazz4cash I understand, but dex mentioned TT "told him" he was eligible whereas my TT was clueless about the rebate. I use the CD version of the software rather than the online version and I have not downloaded any updates, so maybe that's why. Thing is, I'm mostly just curious about TT since I don't really care about the stimulus rebate as I feel a bit guilty about getting it. I feel better when I realize it's a tax cut and Im going to utililize (not spend) it better than Uncle Sam, tho. Probably my last yr using TT.

I guess you have always clicked on "No, don't update" every time you started up TT? I would consider that dangerous since one would want all the AMT fixes and other things repaired before submitting your return, right?

Anyways, you have to be pretty bold to not update TT online.

[Goonie]

Quote:

Originally Posted by FIRE'd@51 I believe you need either earned income or SS to qualify for the rebate.

That's what I was told by the accountant who did my taxes this year. Since I had earned income for a few months in '07, I qualified. If the rebate hadn't been done until next year (for '08 taxes), I'd be S.O.L.

My Mom who's on SS also qualified for it.

We're both happy campers!

[kaneohe]

Quote:

Originally Posted by Twinkle Toes Only income I have is passive. I tried using the Internal Revenue Service calculator to determine whether I will bet a stimulus check. The IRS calculator thinks I failed to include income and puts me in a loop to go back and "properly" fill out the information requested. Anyone else go through this exercise? No stimulus check for me...even though I will be paying federal income tax this year.

Did you input something in every box in the calculator? I got the same endless loop until I put 0 in every blank box I had left. You should get a definitive answer----yes or no----if everything is filled out completely and an explanation if your rebate is reduced or zero.

[kaneohe]

Quote:

Originally Posted by FIRE'd@51 I believe you need either earned income or SS to qualify for the rebate.

That too was my belief from all the newpaper and TV coverage. One of my friends told me that the IRS calculator told him he was getting $1800 for his family including 2 kids---with no wages or SS. I didn't believe him so did the IRS calculator and got the same answer that he did. Went back and re-read the snail mail IRS mailing and it does sound like the main requirement is that you have paid taxes regardless of source and not having the qualified income that I thought you needed.

I mentioned my surprise to an IRS person who was at our volunteer tax site on Saturday and she too was surprised. So I don't know whether things were changed at the last minute or newpapers got it wrong or IRS is wrong but if IRS is right , it sounds like any source of income counts.

[OAG]

Just did the IRS Calculator for DW and I: Line 7: 0 (No earned Income) SS Income: Yes AGI greater than SS Income, Paid taxes over $2.5K. Calculator said "may get" $1,200. (IRS never says "will"). Also lines that were not applicable I just left them blank - still worked fine.

[Jeb-NY]

My 80+ year old parents have H&R Block do there taxes every year. They live on a couple of small pensions and SS and have not had to pay taxes in many years. Their H&R Block guys said they would be getting $1200 when the checks are sent out.

Jeb

[Walt34]

Quote:

Originally Posted by jazz4cash .... I feel a bit guilty about getting it.

I used to feel that way but with therapy I got over it.