Karen Lee Posted December 6, 2008 Report Posted December 6, 2008 The worksheet is not linked properly yet to the 1040 but it is early. I have a client whose spouse died in early 2007 and they sold two houses and was cashed out in 2007. Their cap gains resulted in too much income to qualify for the Stimulus Payment. I was playing with the Line 70 worksheet to see if the surviving spouse would qualify for the Recovery Rebate Credit. When using the worksheet I can't find an exception for filing MFJ last year and single for 2008 (not a qualifying widow). The worksheet doesn't show an exception, the instructions don't offer an exception but I think there should be one. If someone knows of a pub or notice or other resource for me to research this, I would appreciate it. Thanks, Karen Quote
TAXBILLY Posted December 6, 2008 Report Posted December 6, 2008 The rebate is a 2008 one which used 2007 figures if one wanted to file earlier. Since your client was not eligible in 2007 because of the income limitations he follows the 2008 rules and he is single. taxbilly Quote
jainen Posted December 7, 2008 Report Posted December 7, 2008 >> The worksheet doesn't show an exception... I think there should be one<< Why do you think that? Do YOU have a pub or notice or other resource to suggest such an exception? Quote
Karen Lee Posted December 7, 2008 Author Report Posted December 7, 2008 It is as taxbilly says. I was trying to complicate the issue with the worksheet in MAX that has a box for filing MFJ in 2007 and MFJ in 2008 and not allowing completion of the worksheet. Since there was a change in filing status that appeared to disallow the credit, as I was playing with a client that I knew would have the credit for 2008, I figured there was something I was missing. Taxbilly very NICELY brought me back to the basics and made me realize that it is more of a software issue that should be watched and not something I missed. The worksheet is not working correctly yet. I appreciate your concern. Karen Quote
Janitor Bob Posted January 23, 2009 Report Posted January 23, 2009 It is as taxbilly says. I was trying to complicate the issue with the worksheet in MAX that has a box for filing MFJ in 2007 and MFJ in 2008 and not allowing completion of the worksheet. Since there was a change in filing status that appeared to disallow the credit, as I was playing with a client that I knew would have the credit for 2008, I figured there was something I was missing. Taxbilly very NICELY brought me back to the basics and made me realize that it is more of a software issue that should be watched and not something I missed. The worksheet is not working correctly yet. I appreciate your concern. Karen When figuring the recovery rebate credit, one of the questions asks if either taxpayer or spouse was a member of the armed forces in 2008.....I check no...and it said "No, you cannot take the credit".....really? Quote
jainen Posted January 23, 2009 Report Posted January 23, 2009 >>it sais "No, you cannot take the credit".....really?<< Yes, really. But you only get to that line if you answer "no" to the question about Social Security numbers. If you can say yes to Social Security number, the worksheet tells you to skip the next couple of lines. In other words, no rebate without SSN unless you are military. Quote
kcjenkins Posted January 23, 2009 Report Posted January 23, 2009 Or to put it another way, you can get the credit, even without a SSN, if you are in the military. Quote
Janitor Bob Posted January 23, 2009 Report Posted January 23, 2009 Duhhhh...more coffee, please! ....Man...sometimes you post a question on here...then feel really stupid! Quote
Lion EA Posted January 23, 2009 Report Posted January 23, 2009 I can feel really stupid without even posting a question! But, better to get it answered... Quote
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