Taxpayer asks:
I haven’t done my taxes in 3 years, I don’t owe the Feds any$, will I get the stimulus funds every1 else got once I do my taxes? (via twitter)
Taxgirl says:
By law, the IRS is not able to make any economic stimulus payments after December 31, 2008.
But all is not lost. Assuming that you qualify, you may be eligible to claim the Recovery Rebate Credit (for those who missed the credit or had a change in status) in 2009 by filing a 2008 income tax return. This also assumes that you properly filed for extension – individual taxpayer returns were due on April 15, 2009. With an extension, that pushes out the date to October 15, 2009 – just 17 days away. So if you qualify, get moving.
Before you get too excited, though, I should point out that your statement that you “don’t owe” does give me pause. There are income and tax liability limits; for a refresher on who qualifies for the RRC, check out this prior post.
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.
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Taxpayer asks:
I have a query on the recovery rebate for the year 2008.
Let me explain my status as of last year and current year.
Last year :
Tax filed as “Maried filling jointly”
Myself – have SSN
Wife – ITIN
KID1 – ITIN
Since my wife didn’t have an SSN, we didn’t qualify for the stimulus package, which I agree upon.
This year :
Tax filed as “Maried filling jointly”
Myself – have SSN
Wife – SSN
Kid1 – ITIN
Kid2 – ITIN
Since my wife has SSN this year, I was expecting recovery rebate of around $1200 (600 each for myself and my wife). I understand that my kids don’t have SSN, so I won’t get any credit for them.
But the IRS department totally denied any credit saying that all the persons on the tax return should have valid SSN.
Is this correct? Last year many of my colleagues in similar situation got stimulus package for themselves and their spouse and not for kids. So why I have been denied the credit for myself and my wife this year ?
Your advise on the same would be highly appreciated.
Taxgirl says:
Unfortunately, the IRS is right on this one. To be eligible to collect a rebate, you’re only eligible if “[y]ou and any family members listed on your tax return have valid Social Security numbers.”
I’m not sure why others you know might have received a check other than human error. I do know that some folks were filing MFS (married filing separately) to avoid being ineligible altogether – but that’s not something that I recommend in most circumstances. It’s rare that MFS produces a significantly better tax result, especially with dependent children.
I wish I had a better answer for you.
All that said, I’m not sure why your children would not have a SSN if you and your wife do – have you applied?
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! – Now on Facebook!
Taxpayer asks:
Hi,
I’m very disorganized and still haven’t filed my 2007 taxes (as of March 2009!). I’m planning to file in April 2009. Of course, I did not receive an Economic Stimulus Payment in 2008.
I’m single, and I definitely have taxable income and will owe taxes. Will I be eligible for the Recovery Rebate Credit when I get to my 2008 taxes? I’ve read all through the IRS RRC pages. They talk about all sorts of eligibility requirements, but say nothing about people who simply are behind in filing.
Taxgirl says:
You can file for the RRC on your 2008 taxes even if you did not file for 2007, assuming that you qualify.
That said, I would definitely file – and pay – your 2007 tax returns as soon as possible in order to insure that there are no delays in processing your rebate. Additionally, I’m not sure whether IRS was expecting you to file in 2007 or not (i.e. if forms W-2 or 1099s were sent their way) but it’s better to file that old return promptly to avoid any potential issues – not to mention that the clock is ticking on penalties and interest!
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! – Now on Facebook!
Taxpayer asks:
Hi Tax Girl,
I thought I’d see our accountant today but she’s out, then I found out about you!
My parents claimed me as a dependent in 2007 because they paid for my last semester of college (although I did work and live on my own most of the year). I was an independent in 2008 and I used Turbo Tax to e-file my federal refund which I received today. The software said I could be eligible for the $600 rebate credit but said nothing after that, I filled in everything I needed to.
I believe that I am eligible but I did not receive the rebate along with my direct deposit refund today. The IRS website says, “the IRS notes taxpayers will receive a single refund that includes any recovery rebate credit to which they are entitled.”
It also says “Some of the major factors that could qualify you for the recovery rebate credit include: You were claimed as a dependent on someone else’s return in 2007 but cannot be claimed as dependent by someone else in 2008.”
Do you know why I wouldn’t have received the rebate? Or how I can file to receive it even though I have completed and received my federal tax refund?
Thank you!!!!!
Go Phillies!
Taxgirl says:
I don’t know what you were studying in college, but my gut is that you’re going to do pretty well… Sneaking that “Go Phillies!” into your post definitely got you to the front of the pack (hey, it’s my blog, I can make arbitrary decisions like that).
The quick answer to your question is that if you were claimed as a dependent last year, but filed on your own this year, you should be entitled to the RRC. However, there are other factors that could affect your eligibility and/or the amount of the RRC. For one, you had to have at least $3,000 in qualifying income and in most cases, owe some tax. You also have to have a valid Social Security number.
If your qualifying income was more than $3,000 and you met the other criteria, here’s what I’d recommend:
- First, double check your return and make sure that you didn’t accidentally indicate that you already received a stimulus check. The RRC credit can be confusing!
- Second, double check with your parents to make sure that they didn’t include you this year – if they use software or an accountant, you might have been automatically added by mistake.
- Third, if both of those don’t work, give the IRS a call at 1-800-829-1040 and ask them what’s going on (be prepared to wait on hold for a bit).
Most software packages are pretty accurate, so my guess is that it’s related to your income/tax levels or a reporting error.
Good luck!
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! – Now on Facebook!
