I Have A Tax Question About Schedule M (Vanity)

self | 2/15/11 | OneVike

[OneVike]

Is their anyone out there who can help.

[NVDave]

You aren’t alone:

http://www.nytimes.com/2010/04/10/your-money/taxes/10tax.html

[jiggyboy]

You must have done some math wrong there. The best you’re gonna get out of Schedule M is that it takes $800 off the bottom line of your final tax liability. Did you multiply by 2 or 0.02 on line 2 for example.

[kingu]

Umm, your wife likely got the $250 check, which means your tax credit from Schedule M, assuming your income information is right, should be $650 off your taxes, meaning that instead of $1000, you owe $350. I'm unclear how you came up with 15,000 since the MAXIMUM the credit can possibly be for a married couple is $800.

[OneVike]

Line 2 of the Schedule M worksheet?

Or the 1040A Taxform?

[voteNRA]

"Making Work Pay Credit"

I got the same check "out of the blue" last year with the same explanation.

Unfortunately I have no answer, only a ping for what answers you may get.

We decided that since I missed such a large "deduction" that we would go the professional preparer route this time around - no telling what this bunch has to give away that I am missing.

[OneVike]

I took the amount from form 1040 line 27 and put it on the form as they asked
I then deducted it from my income and it came up with about 15,700

The I was told to put that in line 40 of my tax form

[voteNRA]

Added: my "Making Work Pay Credit" amounted to $800 for a married couple with 2 kids.

[OneVike]

We decided that since I missed such a large "deduction" that we would go the professional preparer route this time around - no telling what this bunch has to give away that I am missing.

I may be doing the same, if I cannot get this figured out.

[Jet Jaguar]

Take it while you can get it.

Then go back to Galt’s Gulch.

[jiggyboy]

Look at lines 5-9 on Schedule M. You should be doing some math and get something on all of those lines, and it sounds like your $15,000 is just dropping through.

[jiggyboy]

On Schedule M, but I meant line 8 where the 2% calculation is.

[voteNRA]

"I may be doing the same, if I cannot get this figured out."

I have been doing my taxes for 15 years, besides the BS deductions I just don't trust this bunch. If I can hire a professional for a couple hundred bucks, might as well let his license accept the burden of any potential audit.

That is going to be the approach from my end anyway

[OneVike]

I don't have that line. Hold tell me if this is the foprm you speak of, because it is the one i am using from the IRS's

[voteNRA]

"Take it while you can get it. Then go back to Galt’s Gulch.

Doing my best but I have some stocking up to do to get "Galt" - Keep on, keeping on .... as they say

[Jet Jaguar]

Nodding.

:0)

[OneVike]

I just realized I was given the wrong form. I am using an earned income credit one, instead of the schedule M.

No wonder
\

[jiggyboy]

http://www.sadtrombone.com

[gleeaikin]

Before spending a lot of money on a tax preparer if you only have problems with one form there is another option. Call the IRS phone number listed on your instructions, and ask for help with the Schedule M. They will direct you to someone who will help you understand what you should do. Do it soon before the rush. I had 3 different questions which I took to 3 different people in IRS. They were knowledgeable and helpful in their area of expertise. I have caught tax preparers in errors, so be careful. At least the IRS gives you an ID number in case their people make a mistake that you later have to correct.

[OneVike]

Thanks,