Posted on 04/10/2010 7:27:37 AM PDT by Oldeconomybuyer
As the deadline approaches for filing tax returns, the process of claiming a tax break created by the stimulus package has proved to be more work than millions of people had bargained for.
What millions of taxpayers did not realize was that to have the credit deducted from the total amount of taxes owed, they are required to complete a new form, Schedule M. For millions of retirees, the procedure also requires an additional step because they have to deduct the tax break, known as the “Making Work Pay” credit, from other tax credits they may have received.
While either of those procedures takes only a few minutes, I.R.S. officials said that the unfamiliarity with the process of claiming the credit had led to errors in more than four million of the 82 million returns processed as of this week. The government expects to receive 60 million more returns by the filing deadline on Thursday, so it is possible that millions of additional returns will also contain similar errors.
(Excerpt) Read more at nytimes.com ...
I checked again. I am not eligible for this credit, since my income is not low.
All they have to do is go to taxact.com and let them do their taxes.
So you’re going out of your way to be a jerk then?
BTTT
My return was one of the four million. I was expecting $1200 back, when I checked my refund status, I found out I was getting back just shy of $2000. About a week after the refund hit the bank, the IRS sent me a letter explaining that I didn’t file for the credit and that they’d added it in for me. I didn’t even notice anything about a “Schedule M” or the stimulus tax credit, I just filed like we always have for years.
}:-)4
Turbo Tax is the way to go. I used it and it automatically calculated it into the return for me.
Same with H&R Block’s TaxCut program: It was automatic. I haven’t done my taxes by hand for at least a dozen years, and wouldn’t dream of doing so.
Seen any word on those filing this year with their taxes?
My tax preparer is filing an extension so we are closed when we file. I'm not sure this was necessary.
I did my Mom’s tax returns, and she just mailed them off. If the [NSFW}ing IRS claims a [NSFW]ing error on her return, just because I didn’t take care to add a [NSFW]ing stimulus creidt, I think I’ll [NSFW]ing go crazy!!!
Well, that might explain why I owe them 767 bucks this year, along with the mortgage interest that my mortgage company won't report to the IRS until next year.
I don’t even recall seeing a “stimulus tax credit” box on my 1040. I thought the stimulus contribution consisted of decreasing my withholding a tad.
Wait until the Bush tax cuts expire on December 31 2010 and then people will feel the real pain. People who were paying 25% in Federal taxes are going to pay 28%, people who were paying 28% are going to pay 31%, those who were paying 31% will be paying 34%, the highest bracket of 35% will be paying 39%. Many other tax dedcutions that have been in the Bush tax cuts for the last 8 years will also expire by December 31 2010.
The Times, in their sly way, are trying to point the finger at employers -- for deducting "too much".
Fact is, the Obama administration changed the withholding tables -- so as to reduce withholding. But they didn't change the tax tables. So you still owe the same amount of tax, but not as much was withheld against your liability.
This was Obama's idea of "a tax cut".
Well, that doesn’t surprise me. 0b0z0 seems to be what you people down there call “all hat and no cattle.”
A minimum EARNED income. I suppose you family business could pay you a salary ~
PING!
And I missed the damn thing, too, but I haven’t sent mine yet, fortunately. And please don’t brag about how your tax software figured it out for yas. I pride myself on doing it by hand, and if I hear any more “easy-peasy” comments, my pointy head will explode.
No problem. Just use the Tim Geither method.
Filing this year seems to be to your advantage. It’s the ones that filed last year that are having problems. That’s because they revised the forms, and changed the rules after the fact, so from what I can gather all those that filed last year got caught in an audit of sorts.
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