Rebate as credit on 2008 returns?

John D. Goulden · Joined: 25 Aug 2007 Posts: 43

I've been told by several people that the stimulus package checks coming out
this summer are an advance payment on a credit that will appear on the 2008
returns. In particular, they are saying that if your '08 return qualifies
you for more than you actually got the previous summer, IRS will send you
the difference; if your '08 return qualifies you for LESS than what you
actually got, you get to keep the full amount anyway (and if true this will
effect lots of divorced couples who trade their children's tax benefits back
and forth). But - I don't see anything like this on irs.gov or the other
press releases about the rebates. So what's the deal - will this be part of
our '08 tax forms or do we just get checks this summer and that's the end of
it?

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John D. Goulden

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Archived from group: misc>taxes>moderated

Paul Thomas, CPA · Joined: 25 Aug 2007 Posts: 3094

"John D. Goulden" wrote
> I've been told by several people that the stimulus package
> checks coming out this summer are an advance payment
> on a credit that will appear on the 2008 returns.

To the extent that you don't get the rebate based on the 2007 return, or
don't get the full credit, yes, there will be an add-back for the credit not
received during the year that you shouls have received.

> In particular, they are saying that if your '08 return qualifies you for
> more than you actually got the previous summer,
> IRS will send you the difference; if your '08 return qualifies
> you for LESS than what you actually got, you get to keep
> the full amount anyway (and if true this will effect lots of
> divorced couples who trade their children's tax benefits
> back and forth).

Possibly, yes.

And folks who don't have a child on the 07 returns, but do on the 08 (for a
host of reasons).

> But - I don't see anything like this on irs.gov or the
> other press releases about the rebates.

What, you expect them to tell you how to game the system?

> So what's the deal - will this be part of our '08 tax forms or
> do we just get checks this summer and that's the end of it?

For most people, they'll get a check (or direct deposit) this summer and
that's the end of it. Others - many others based on the last time they
played this shell game - will have some extra coming on the 08 returns.

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Paul A. Thomas, CPA
Athens, Georgia

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Ira Smilovitz · Joined: 25 Aug 2007 Posts: 166

"John D. Goulden" wrote in message @news2.newsguy.com...
> I've been told by several people that the stimulus package checks coming
> out this summer are an advance payment on a credit that will appear on the
> 2008 returns. In particular, they are saying that if your '08 return
> qualifies you for more than you actually got the previous summer, IRS will
> send you the difference; if your '08 return qualifies you for LESS than
> what you actually got, you get to keep the full amount anyway (and if true
> this will effect lots of divorced couples who trade their children's tax
> benefits back and forth). But - I don't see anything like this on irs.gov
> or the other press releases about the rebates. So what's the deal - will
> this be part of our '08 tax forms or do we just get checks this summer and
> that's the end of it?
>
> --
> John D. Goulden

You must not be looking very hard. There is a massive amount of information
available at the IRS website. At the top of the main page there is a link to
"Rebate Questions?" The page it links to is being updated almost daily as
more information is available.

Ira Smilovitz

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