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.
Have a question? Ask the taxgirl! – Now on Facebook at http://www.facebook.com/taxgirl
David Smith writes:
If I could make one change in the tax code, I would eliminate any benefits for having children. I chose to be single. I chose not to have children. I am appalled to see how much our tax system subsidizes having children. It is welfare, just put forth another way.
I already pay property taxes in my state. Those property taxes are used to pay for schools to educate children that I don’t have. I understand that education is something that benefits society, so I don’t mind.
I feel similarly about programs that pay for medical insurance for children. I do think all children should have medical insurance.
But I don’t think that anyone should receive extra tax benefits because they chose to have children. It was especially annoying to see that Congress offered extra stimulus checks per child last year. Combined with extra exemptions and the earned income tax credit, people with children get huge breaks when it comes to taxes. I don’t think this makes sense and I don’t think it’s fair.
Taxpayer asks:
Hello,
I am writing in behalf of my daughter who has a stimulus check from last year that she cant get cashed. She and her husband or soon to be ex have received a $900.00 check that she cant get cashed. He isn’t playing fair and has moved out of the state and is refusing to sign the check or even give her the correct address. I had her mail the check off to him with a stern and direct note attached that he is to sign and send it back uncashed and she would send him his part on return. She sent it off signature required and it was returned as unknown address or person. The address she sent it to was the last known address the divorce attorney used to contact him. What can she do? Their boys are the ones suffering the most by not being able to cash this check…. any ideas?
Taxgirl says:
That stinks. But unfortunately, there’s not a whole lot that you can do. By law, each of your daughter and her ex is considered to receive half of the stimulus payment.
The IRS doesn’t want to play referee in a relationship. If the check is made out to the both of you, the job of the IRS is more or less over. This doesn’t sound like an issue which would lend itself to innocent spouse relief, it’s an issue of endorsing the check. That really makes it more of an asset/income split issue for the divorce.
Since you indicated that there’s a divorce attorney involved, I would suggest contacting him or her to have the court order him to sign the check. That may be tricky because of the location issue.
Other than that, I have no real suggestions (perhaps one of my colleagues might?). Your daughter has already filed the return together with her ex, so she can’t amend to file separately without his consent. And that’s clearly not going to happen.
What I would definitely advise against: signing his name to the check (don’t, don’t, don’t!) or otherwise trying to cash it without his permission. That constitutes fraud and/or theft and would make a bad situation worse.
It just sounds like a terrible situation. Sorry that I can’t be of more help.
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:
Are we getting a second check in 2009?
Taxgirl says:
Not exactly.
Beginning in April, employers will begin adjusting your withholding under the Making Work Pay Credit, giving you a few extra dollars in your paycheck. Phaseouts apply.
Later in the year, those who are disabled or retired will receive a small check in the mail since they do not qualify for the Making Work Pay Credit.
Those who are self-employed will be able to apply for the credit on next year’s tax forms. I haven’t seen drafts of the forms yet so I’m not sure about the specifics.
If you do not work, you are not eligible for the credit. And, unlike last year’s credit/check, the number of children that you have will not influence the amount of your credit, something many in Congress are glad about. You may remember that the initial version of the stimulus check bill under President Bush capped the credit based on dependents at three children, while the final version did not have a cap. This had the unfortunate consequence of having taxpayers with dependents come out of the woodwork in 2008 in order to claim several dependents on their return.
To recap, those who are employed will see the most benefit, unless you are phased out due to income restrictions (phase-outs would allow a partial credit for individuals up to $100,000 and couples earning up to $200,000). The credit is refundable, so if you don’t receive all of it due to withholding and you otherwise qualify, you can claim it on your 2009 tax return. No checks will be mailed during 2009 except to those who are retired or disabled.
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!
