With the changing tax laws it is sometimes difficult to keep up on the latest information. If you have been wondering about the 2009 economic stimulus payment, here are some of the commonly asked questions and their answers.
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If I received an economic stimulus payment last year, do I have to claim it as income this year? Good news, no! You do not have to report it as income.
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If I received a payment in 2008, would it cause me to lose money on this year’s refund or cause me to owe more if I have to pay? More good news, no! The economic stimulus payment will not affect your refund or cause you to owe more. Any amount you received is totally independent of the tax you would have paid.
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Do I have to file a tax return to claim the credit? Yes, you do. You must file a tax form to claim the credit.
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How will the 2009 economic stimulus payment be made? This year will be different. If you are going to receive a credit recovery credit (new name for this year) it will not be mailed as a separate check. You will see it added to your refund or deducted from the amount you owe. No separate mailings.
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How long will it take to receive my check? Because the rebate will be part of your 2008 income tax refund, you will generally see it 6 to 8 weeks after you file your return.
You will need to claim the recovery credit rebate on Form 1040, 1040A, or 1040 EZ. Online tax preparation sites have interactive calculators that will help you with the calculation.
If you happen to file using the paper booklet, the worksheet instruction booklet will help you to figure the amount by hand. With tax laws that change so quickly, it is beneficial to access the easy to use software that the professionals have waiting for you.
I’m sure you’re anxious to see if you’re eligible for the tax credit and if you are, I’m sure you’re even more anxious to actually have the money in your hands.
Why not visit TurboTax Online to find answers to all of your 2009 economic stimulus payment questions? Our time is also very valuable and their expertise can take the burden off of us. Turbo Tax also has consultants standing by to answer your tax preparation questions.
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