Posts tagged as:

liabilities

Taxpayer asks:

If you owe the unemployment office 1500.00 of being over charged benefits do I still qualify for the check or do they keep my money?

Taxgirl says:

Unemployment is a state obligation unrelated to income tax. It is my understanding that your check can be reduced for federal or state income taxes or non-tax federal debt such as student loans and child support – but not for other obligations. So, my guess is that your check will not be affected by your unemployment issues. I would love to hear someone more “in the know” if there is a different answer.

Regardless, you will receive a letter explaining what happened to your check if it is less than contemplated.

If you have more questions about the rebates, check out the posts about rebates and the stimulus plan listed in the sidebar!

Like any good lawyer, I need to add a disclaimer: Unfortunately, it is impossible to give comprehensive tax advice over the internet, no matter how well researched or written. Before relying on any information given on this site, contact a tax professional to discuss your particular situation.

Have a question? Ask the taxgirl!

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Taxpayer asks:
I ran across your blog while searching for some info on the Tax “stimulas” rebate. To make it short, my husband and I are paying on back taxes (Federal – not state) for 2005. Will we still receive the rebate, or will it go to what we already owe?

Thanks, I have not seen any information on this yet.

Taxgirl says:

I’m afraid that I don’t have good news for you. If you owe for prior taxes or have other federal liabilities, including overdue child support or past due federal student loans, the IRS will apply at least a portion of your rebate towards those liabilities. I don’t know what formula or criteria they’ll use to determine how much will be used for liabilities versus how much you get to keep.

Like any good lawyer, I need to add a disclaimer: Unfortunately, it is impossible to give comprehensive tax advice over the internet, no matter how well researched or written. Before relying on any information given on this site, contact a tax professional to discuss your particular situation.

Have a question? Ask the Taxgirl!

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