Remember that $600/$1200 "stimulus" check we received last year?

[Writer]

Well, goodness gracious! I guess it was time to pay the piper! Our refund this year was drastically reduced... want to guess why?

x(

[atreides1]

1. Explain Please

Thank you

[Writer]

3. We have to pay back the amount we received for our stimulus check on this year's tax return.

So our return was reduced by $1200.

[montanacowboy]

6. You did not have to pay it back

I don't understand why they would take it out. It was not counted as income.

[ohtransplant]

11. You are correct. See below.

Stimulus Payments Not Taxable; Reports of Extensive Refund Delays False

The IRS has received a number of recurring questions involving stimulus payments and the recovery rebate credit. Here are some important tips to keep in mind:

Taxability. The economic stimulus payment is not taxable and it should not be reported as income on the 2008 Form 1040, 1040A or 1040EZ.

Refund delays. IRS personnel are aware of reports that errors in claiming the recovery rebate credit could delay tax refunds for as much as eight to 12 weeks. These reports are false. As the IRS detects and corrects return errors concerning the recovery rebate credit, refund delays are currently no longer than about one week.

One payment. In addition, the IRS notes taxpayers will receive a single refund that includes any recovery rebate credit to which they are entitled. The IRS will not be issuing separate recovery rebate credit payments.

http://www.irs.gov/newsroom/article/0,,id=203191,00.html?portlet=6

[polmaven]

20. But, from what I read back then,

It may have been considered to be an advance. No, not taxable, but to be deducted from any refund due now. I may be wrong on this, but I read it somewhere...(don't remember exactly where)

[prolesunited]

13. Even if it was taxable

it wouldn't be taxed at 100%.

[high density]

16. Pay back? No.

We knew from the start that this was an advance on a tax cut that otherwise would not have been realized until we filed our '08 taxes. There's no "pay back" involved unless your withholding was way off to begin with.

[ComtesseDeSpair]

2. Interesting...

My refund was bigger than last year.

[ellie]

4. So was mine

and I received an extra $39. Last year's check was $1161 and the $39 makes it an even $1200.

[Bryn]

5. I don't understand

I thought Obama wanted to help us little people. Only corporations and banks got the bailout money, and turned around and used it on themselves with bonuses and continue to stealing from us with those bogus charges. x(

Why can't us little people get share of bailout money to pay for student loans, mortgages, pay off credit cards and tear them up, etc. ?

[babylonsister]

8. For starters, Obama had nothing to do with last year, so you might

want to redirect your ire.

And if you are a student, read this. It might actually happen-or not.

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=389&topic_id=5011123&mesg_id=5011123

[Bryn]

10. Ok, thanks

:hi: I just want to be sure that us people aren't forgotten. So many lost jobs, high credit card debits, foreclosures, student loans, high rents, etc. I don't have a student loan. I was speaking of us people in general.

[catnhatnh]

7. Ummm...

You might want to check this thread:
http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=102&topic_id=3726983

Which contains this tidbit:
But the 2008 tax forms aren’t very clear about that. You still have to acknowledge getting a check on your return for bookkeeping purposes. And that’s misleading taxpayers — and even some professional tax preparers and early releases of tax software — into mistakenly calculating it as income.

and is sourced back to MSNBC...

[PBS Poll-435]

9. UR DOIN IT RONG

Trust me.

[Barack_America]

17. Thank goodness.

I was having a serious :wtf: moment over here.

[peace13]

12. Nope, not taxable.

Go back to the drawing board and do it over. It is not taxable. You may have to document how much you got but it is not taxable.

[PBS Poll-435]

14. Exactly... If your 2008 income was substantially less than 2007

And you became eligible for more because you were totally or partially phased-out, you will get the additional stimulus payment with your rebate.

For example, if you are single and had AGI of $78,000 in 2007, your stimulus check would have been for $450 because you were partially "phased-out." If in 2008, you had AGI of $72,000, you would get your regular tax refund PLUS an additional $150.00 economic stimulus payment.

Last years checks were just an advance on the "Recovery Rebate Credit" for 2008.

[WI_DEM]

15. the stimulus checks aren't considered taxable.

[Blue_In_AK]

18. I thought that one wasn't taxed.

Alaska's huge permanent fund dividend with Caribou Barbie's added $1200 energy rebate, though, will be. An extra untaxed $6,500 income for my husband and me. Ouch.

[AlCzervik]

19. no i don't actually but that's ok.