Stimulus money

[ArmedProgrammer]

I suspect that many of you are confusing your tax return with your tax BILL....

Take all payroll deductions, all of the sales tax , all of the Social Insecurity, the amount you pay or owe on April 15, etc... keep track of it from year to year... THAT (when considered alongside your GROSS income) is what will tell you whether your taxes are going up or down. Everything else is shell games that politicians play so that you don't REALIZE that you're getting hosed.

Agree with the poster above about the interest free loan. Never loan your money to Uncle Sam. Especially for no return.

 

[Mike H]

As a disabled Vet I too recieved the $250.00 stimulus check this summer.
H & R did my taxes and e filed. It got rejected right away and then I got a call from H & R asking if I got the stimulus. The gov't wanted it all back. It reduced my refund by $250.00. So much for stimulating my economy. SUX.

 

[Lex Concord]

What about "Schedule M"?

You may all remember O's "stimulus" whereby withholding was reduced? You got to keep the money at the point of pay, rather than getting a check as we did under Bush? It was called "Making Work Pay".

I didn't realize until after I sent in our return that the reduced withholding evaporates UNLESS you file Schedule M and claim the "Making Work Pay" credit on your return.

That's right, even though withholding was reduced throughout the year, your tax burden didn't actually change at all unless you filed the form along with your return.

From the "Avoid Common Mistakes" page on IRS.gov...
Avoid Common Mistakes When Filing Your Tax Return

Remember Making Work Pay. The Making Work Pay tax credit –– available in 2009 and 2010 –– is worth up to $400 for individuals and $800 for married couples. Most people got it as a reduction to their paycheck withholding. Form 1040 filers must complete Schedule M, attach it to their returns, and claim the credit to benefit from it. (Tax software handles these calculations automatically for e-filers.) Also, if you received the one-time Economic Recovery Payment, you need to reduce your Making Work Pay credit by that amount. Taxpayers who are not certain whether they received the economic recovery payment can find out with the help of an online tool, Did I Receive a 2009 Economic Recovery Payment? If you don’t have access to the IRS Web site, call 866-234-2942.

Since finding this, I have sent in 1040x (amended return) with Schedule M attached.