Important Tax & Tax Rebate Question

[reeses16 8]

Hi! Here's my situation, my husband and I were married in 2007, and he recieved his green card in 2007, and was employed in 2007. I filled our taxes online yesterday using TurboTax like I do every year. The IRS rejected the return, I logged in Turbotax and found that it was rejected because it listed a 2006 Adjusted gross income for my hubby that did not match the IRS records. This makes sense, my hubby wasn't living in the US or earning $ in 2006. It was a simple error to fix. Now, in the process of resending my file, Turbotax asked how (deposit/check) I would like to receive my "$600 tax rebate." I have been on turbotax several times since Jan, and this is the first time that option was prompted.

We are married, why isn't the $1200? I thought the rebates were based on 2007 income.

Anyone in a similar situation expected refund?

Anyone go to a tax prepare and get different results?

I'm waiting to complete the filling to find out why its not $1200.

Thanks.

[payxibka 10,047]

Because you need to understand how the stimulis payments work..... They are not attached or made a part of your return as it is a completely separate activity... These payments won't start being mailed until summer

[reeses16 8]

I understand that they are not mailed until this summer. There was a turbotax prompt that said, "Where would you like to receive your$600 rebated? (1) by direct deposit or (2) by mail. I'm concerned by amount it wrong since we're married and meet all the other requirements. If the prompt just said how do you want your rebate without any indication to amount, I wouldn't be concerned about it. Did that clarify my situation/question?

Also, I just went back and put a larger AGI for my hubby to see what would happen and turbotax still lists our rebated at $600. Our filling status is "married filling jointly." And we are certainly not over any income guidelines.

Thanks.

[payxibka 10,047]

I understand that they are not mailed until this summer. There was a turbotax prompt that said, "Where would you like to receive your$600 rebated? (1) by direct deposit or (2) by mail. I'm concerned by amount it wrong since we're married and meet all the other requirements. If the prompt just said how do you want your rebate without any indication to amount, I wouldn't be concerned about it. Did that clarify my situation/question?

Also, I just went back and put a larger AGI for my hubby to see what would happen and turbotax still lists our rebated at $600. Our filling status is "married filling jointly." And we are certainly not over any income guidelines.

Thanks.

Well then I guess the question might be better asked of the turbo tax community rather than on VJ as it sounds like a potential turbo tax flaw

[eau_xplain 2]

Hmmm.... we filed using turbotax but there wasn't any mention of the tax rebate. I'll have to look at our electronic return again and see if it says anything about the tax rebate and we just missed it.

[reeses16 8]

eau_xplain, thanks for checking. Yeah, I 've been to the site many times since they started accepting 2007 returns, and today was the first time rebate came up, I think you go under the Print and File Tab, then select file return. I think it might not work if you've already filled.

[rin and john 71]

Hi! Here's my situation, my husband and I were married in 2007, and he recieved his green card in 2007, and was employed in 2007. I filled our taxes online yesterday using TurboTax like I do every year. The IRS rejected the return, I logged in Turbotax and found that it was rejected because it listed a 2006 Adjusted gross income for my hubby that did not match the IRS records. This makes sense, my hubby wasn't living in the US or earning $ in 2006. It was a simple error to fix. Now, in the process of resending my file, Turbotax asked how (deposit/check) I would like to receive my "$600 tax rebate." I have been on turbotax several times since Jan, and this is the first time that option was prompted.

We are married, why isn't the $1200? I thought the rebates were based on 2007 income.

Anyone in a similar situation expected refund?

Anyone go to a tax prepare and get different results?

I'm waiting to complete the filling to find out why its not $1200.

Thanks.

Based on the IRS FAQ, you should get the $1200 assuming your spouse has a SSN. Rin has not adjusted status yet, so no SSN, just an ITIN for her and the children. Apparently I get nothing, because having an ITIN on my return zeroes out the $600 I would get if I filed separately!

http://www.irs.gov/newsroom/article/0,,id=179181,00.html

[reeses16 8]

Rin and John,

Thanks for the link. Yes, my hubby has a SSN and we were sure to go the SSA office and update his card & records once he got his green card.

I've been puzzling this all day. I noticed a detail in the link you sent that I hadn't noticed before: under Q. I want to estimate my payment. Please explain how it is figured, it says: "The payment is equal to the taxpayer’s net income tax liability, but no more than $600 for a single person or $1,200 for a married couple filing a joint return. The minimum payment is $300 for a single person or $600 for a married couple filing jointly." The rebate is also dependent on how much if any you owed in taxes, with minimum payment for a married couple is $600. I tested this out on the turbotax rebate calculator, and it looks like having a refund or owing taxes of $600 or less = $600 payment. If you owed $601 or more up to $1199, then you refund is the amount that you owe (if you had to pay $786, then your rebate will be $786). If you owed more than $1200 in taxes, then your rebate is $1200. Of course this is assuming you fall under the maximum income (before there are reduction in your rebate because of the amount of your earned income.)

Thanks to everyone for your responses!

Note: the numbers I listed are all based on married filing jointly.

[rin and john 71]

After reading further, Rin and I will be able to get it back on our taxes when we file next year. We will file AOS later this year to guarantee her GC will be issued after our 2nd wedding anniversary (to get 10 yr card and avoid lifting conditions). So Rin and our children can get SSN after that. Reading the IRS info it sounds like we can then either file an amended return or take a credit on next year's return.

From the IRS website:

"Can you use an ITIN instead of an SSN? Taxpayers with an Individual Taxpayer Identification Number (ITIN) instead of an SSN are not eligible to receive a stimulus payment. Both people listed on a "married filing jointly" return must have valid SSNs to qualify for the payment — if only one has a valid SSN, neither can receive the payment.

Not eligible at the current time? If your circumstances change and you become eligible after you file your 2007 federal tax return, you can always file an amended return using Form 1040X. If you're not eligible this year but you become eligible next year, you can claim the economic stimulus payment next year on your 2008 tax return."

This may apply to alot of VJ'ers (particularly K3 or CR1) if their SO get their SSN number later this year.

John

Edited March 6, 2008 by rin and john