Returning $$$ back for stimulus checks

[rainplace]

Quote:
Yes, my wife got one since she is a disabled veteran. Nobody is asking for repayment of those stimulus checks, nor are they asking for the Making Work Pay tax credit to be repaid. There is only an adjustment for those whose withholding didn't match the tax credit due to them.

Yes, I was just saying that there was a lot of misunderstanding about the 2008 stimulus check as well.

 

[Mac in Wisco]

Quote:
That's neither here nor there without knowing his tax liability. Depending upon his withholding status his employer took out $400 or $600 less over the course of the year, but he gets a $400 tax credit. If his withholding was good in past years the changes in withholding due to the Making Work Pay tax credit only affect him to the tune of a $200 difference, if at all.

 

[BarbK]

Quote:
Well not those stimulus checks but the other CHECKS that were handed out.
This is what my mom was talking about. Not what mac abilene was talking about. I don't think she/he realized the diff.

 

[Mac in Wisco]

Quote:
Well not those stimulus checks but the other CHECKS that were handed out.
This is what my mom was talking about. Not what mac abilene was talking about. I don't think she/he realized the diff.

Yet she also stated that it was only a short term loan that would have to be repaid. Once again, nobody is asking for any stimulus checks or tax credits to be repaid. For each income a withholding status of Married was claimed on, they were given $200 more back in their pay checks than the actual tax credit, up to two jobs anyway. Each additional income would be a $600 hit at tax time. For a couple each with a job, both withholding at the Married rate, this adds up to a $400 difference that will be accounted for at tax time. A third job claimed at the married rate would add up to $1000 difference.

For my wife and I, if we had kept the withholding at the new rate and both claimed Married as our filing status. I would have received $600 back into my paycheck, the wife would have received $600 back in her paycheck, $600 back in her taxable pension withholding, plus an $250 payment because she is a disabled veteran receiving disability payments. A total of $2050 dollars into our pockets over the year for an $800 tax credit. All that plus self-employed farm income is why I track everything so closely. It isn't as simple as filling out a W-4.

The IRS has a calculator for figuring your tax liability:

http://www.irs.gov/individuals/article/0,,id=96196,00.html

This is more accurate than the garbage on a W-4 when figuring multiple incomes, but you still have to know what you're talking about. Garbage in = garbage out.

 

[BarbK]

The stimulus CHECKS had to be repaid they stated that. Go talk to your CPA I know in 2008 when I got mine and mom did my taxed I had to repay it. So again go talk to your Accountant about the CHECKS that were handed out. Not the tax credits. We are talking about 2 totally diff things here.

FYI if anyone has any questions go talk to a TAX EXPERT. Even though some won't even listen to them.

 

[Mac in Wisco]

Quote:
This thread wasn't about 2008 or previous tax stimulus checks. This thread was about what has been in the news lately about those that didn't have enough withheld from their paychecks this year due to the Making Work Pay tax credit under the new administration and the "repayment" that may occur since some families pocketed more than the actual tax credit over the course of the year.

Since checks were handed out generously in previous years, some found out at tax time that they didn't qualify for the money to begin with and had to repay the money. Previous years' stimulus payment problems have nothing to do with this year's stimulus bill or it's tax implications. I'm sure your mother is an excellent tax preparer, but even she stated that she hasn't looked at this year's situation yet.

 

[Mac in Wisco]

This year's stimulus bill included a Making Work Pay tax credit. This was the only economic stimulus paid to the individual tax payer.

The tax credit is worth $400 for an individual and $800 for a couple filing jointly.

They revised the tax withholding tables in the spring and these were implemented by employers in April or May.

Depending upon when your employer implemented the new tables each persons withholding would be adjusted to have less withholding taken out over the remainder of the year to add more to their take home pay:

Each income claiming withholding at the Single rate had ~ $400 less taken out.

Each income claiming withholding at the Married rate had ~ $600 less taken out.

If you have dependents with income that is claimed on your tax return, they also had $400 or $600 less taken out that will effect your tax return.

There were also $250 payments made to Social Security recipients and some recipients of disabled benefits.

If you add up every job or payment for which your household received benefits of this year's stimulus bill and compare that to the actual $400 or $800 tax credit, then you will find how much is owed back to the government, or at least reduces your refund.

 

[BarbK]

Quote:
This thread wasn't about 2008 or previous tax stimulus checks. This thread was about what has been in the news lately about those that didn't have enough withheld from their paychecks this year due to the Making Work Pay tax credit under the new administration and the "repayment" that may occur since some families pocketed more than the actual tax credit over the course of the year.

Since checks were handed out generously in previous years, some found out at tax time that they didn't qualify for the money to begin with and had to repay the money. Previous years' stimulus payment problems have nothing to do with this year's stimulus bill or it's tax implications. I'm sure your mother is an excellent tax preparer, but even she stated that she hasn't looked at this year's situation yet.

Ok it was a missunderstanding on what was being talked about. Sorry. Sometimes things get confused when we can't see faces or hear the voices (at least on my end).