Rebate Calculation Feature

[JohnH]

Someone posted on another forum that Drake now has a rebate calculator built into their software. It prints out a sheet as a part of the client letter advising the client of the estimated rebate they will be receiving. Nice foresight - certainly not necessary but a good client services feature.

Any bets on when ATX will have this capability? :(

[Jack from Ohio]

Someone posted on another forum that Drake now has a rebate calculator built into their software. It prints out a sheet as a part of the client letter advising the client of the estimated rebate they will be receiving. Nice foresight - certainly not necessary but a good client services feature.

Any bets on when ATX will have this capability?

I consider it un-necessary as it will open a HUGE can of worms when the IRS sends a letter to them that may disagree with the calculations. I am telling all clients to WAIT till they get the letter from the IRS because all the discussing and debating will NOT change what the IRS decides. Then the ball is in the IRS court and clients cannot acuse me (never happens, right?) of giving them bad information.

[jainen]

>>Drake now has a rebate calculator built into their software.<<

Lacerte's notice is nicely provisional. "The Economic Stimulus Act of 2008 includes a provision for the government to issue tax rebate checks. Based on data included in this 2007 tax return, the estimated rebate amount is ________." It is not part of the letter, but a separate statement in the compliance analysis that the preparer can discard.

[MN2V]

I sent an e-mail to tech support asking if ATX would be coming out with the calculations. I got a speedy reply that they had NONE planned and didn't expect to provide any....Silly me to expect more...

[Gail in Virginia]

But at least for that question, you got a prompt reply that was to the point! ;)

[Randall]

Overkill.

[SCL]

Overkill.

ditto

my calculator - open to correction.

1) 0 tax liability, but 3000 in qual income = 300 single (x 2 if joint) & needs a return filed.

2) tax liability between 300-600 (single) or 600-1200 (joint), rebate = tax liability.

3) tax liability over 600 (single) or 1200 (joint), rebate = 600 or 1200.

4) throw in 300 for kids if it applies (you figure it out).

[JohnH]

Dont forget to adust downward for income over $75K / $150K, where applicable.

[Pacun]

Also, kids means, kids that qualify for the child tax credit or additional child tax credit.

So a couple that makes only $6000 and 3 kids under 17 would get only $600. Am I correct?

[taxperson]

Is Lacerte guessing at the phase-out "brackets" or rates or whatever when income is over $75,000? Has the IRS released anything like that? All I've seen is that the amount will be adjusted, not how it's going to be calculcated.

And I know if ATX released that, 1/4 of the customers would like it, 1/4 would never notice, another 1/4 would call customer support to gripe about it printing in the wrong text font and the rest would complain that it's a waste of paper and time would have been better spent on other issues. Put me in the 4th set.

On the other hand, if I were paying Lacerte prices I would "expect more". Over $2,000 for just the Fed 1040, $395 for EACH state, $1,000 for unlimited efile and $1,200 for each business tax package. Go to Lacerte if they're so wonderful. It's your nickel(s).

http://www.lacertesoftware.com/products/pricing/index.aspx

[Ray in Ohio]

Also, kids means, kids that qualify for the child tax credit or additional child tax credit.

So a couple that makes only $6000 and 3 kids under 17 would get only $600. Am I correct?

you're not correct if I understand things right.

the couple would get $600 for itself plus $300 per child under 17 for a total of $1500.

Willing to be corrected, but that is how I have been figuring it.

[JohnH]

The phaseout is a straight percentage - 5% of the excess over $75K/$150K.

It's explained under the general info on the Stimulus Rebate on the IRS web site

[Pacun]

you're not correct if I understand things right.

the couple would get $600 for itself plus $300 per child under 17 for a total of $1500.

Willing to be corrected, but that is how I have been figuring it.

I think you are right because no one has mentioned the 11K floor when calculating the credit for the children. So any dependent kid related by blood under 17 will get $300. Thanks for your reply.