Recover Rebate Credit

[Terry D EA]

You do not qualify for the credit if all of the following apply:

1. You received an economic stimulus payment of $300 ($600 if married filing joint).

2. Your 2008 tax on Form 1040 line 46 is $300 or less ($600 if married filing joint)

3. Your 2008 filing status is the same as your 2007 filing status

4. You do not have any qualifying children.

I have a young client who meets all of the above except her taxable income in 2008 is more than 300.00. The worksheet is giving her an additional $300.00. The worksheet is confusing and I have read and re-read the information on this credit until my eyes have gone crossed. Am I correct when I read that her stimulus payment was less than $600.00 and because her tax liabitlity for 2008 is greater than $300.00, she gets the additional $300.00 credit?

Terry D.

[mcb39]

You do not qualify for the credit if all of the following apply:

1. You received an economic stimulus payment of $300 ($600 if married filing joint).

2. Your 2008 tax on Form 1040 line 46 is $300 or less ($600 if married filing joint)

3. Your 2008 filing status is the same as your 2007 filing status

4. You do not have any qualifying children.

I have a young client who meets all of the above except her taxable income in 2008 is more than 300.00. The worksheet is giving her an additional $300.00. The worksheet is confusing and I have read and re-read the information on this credit until my eyes have gone crossed. Am I correct when I read that her stimulus payment was less than $600.00 and because her tax liabitlity for 2008 is greater than $300.00, she gets the additional $300.00 credit?

Terry D.

You are correct. She gets the additional $300 this year. Have had several of these. Many times they were students last year and nobody got the stimulus because they were someone else's dependent. This year they are working and get the full $600..

[RitaB]

I have a young client who meets all of the above except her taxable income in 2008 is more than 300.00.

Terry D.

I think you mean the tax liability is more than 300.00?

"Am I correct when I read that her stimulus payment was less than $600.00 and because her tax liabitlity for 2008 is greater than $300.00, she gets the additional $300.00 credit?" --- Terry D.

Not necessarily. We are talking about a person that did receive $300 stimulus payment, if I understand correctly.

If so, if the tax liability is $508 this year, the RRC will be $208, for example. If the tax liability is $750, the RRC will be $300.

If the worksheet is giving her $300 this year, her tax on 2008 tax liability must have been at least $600, right?

Also, I'm assuming there are no credits. So, I guess line 56 is at least $600, correct?