PSTX Posted June 2, 2009 Report Posted June 2, 2009 I have had two changes in the economic stimulus payment computation for the 2008 returns The IRS decreased one and increased another client. For the decrease, I spoke to 3 people at the IRS and got three different and incoherent answers as to why. For the increase, the Where's My Refund option said there was a mistake on the return and the extra refund was the stimulus payment due.Anyone else have this problem with the software? Quote
jainen Posted June 2, 2009 Report Posted June 2, 2009 >>Anyone else have this problem with the software? << To what software problem are your referring? Quote
PSTX Posted June 2, 2009 Author Report Posted June 2, 2009 >>Anyone else have this problem with the software? << To what software problem are your referring? The Worksheet for Line 70 - Recovery Rebate Credit. One IRS employee informed me that many of the tax prep software programs do not compute this correctly. Quote
jainen Posted June 2, 2009 Report Posted June 2, 2009 >>One IRS employee informed me that many of the tax prep software programs do not compute this correctly<< I see. But apparently two other IRS employees told you differently. What did tech support say? Quote
PSTX Posted June 2, 2009 Author Report Posted June 2, 2009 >>One IRS employee informed me that many of the tax prep software programs do not compute this correctly<< I see. But apparently two other IRS employees told you differently. What did tech support say? 2nd IRS employee said she was owed more, 3rd said she wasn't because of a "credit elect" Haven't tried Tech yet, I will this afternoon. Quote
PSTX Posted June 2, 2009 Author Report Posted June 2, 2009 2nd IRS employee said she was owed more, 3rd said she wasn't because of a "credit elect" Haven't tried Tech yet, I will this afternoon. I asked tech support why my client got $1300 more in a rebate credit than what was calculated by ATX. I emailed the return to her, she consulted with others. ATX tech support said that the rebate is determined by the IRS and that it is beyond the function of the ATX program to calculate it. The IRS decides if a client is due a payment. There can't be a calculation for that. It is beyond the scope of the ATX program. She said that calculating the credit is not a math calculation, the IRS decides who receives the credit. I'm stunned and at a loss. Good thing the rebate madness ends this year. Quote
TAXBILLY Posted June 2, 2009 Report Posted June 2, 2009 Why not give us the numbers so that we can see where the problem lies? I had no problem with any of my 900+ clients. taxbilly Quote
PSTX Posted June 2, 2009 Author Report Posted June 2, 2009 Why not give us the numbers so that we can see where the problem lies? I had no problem with any of my 900+ clients. taxbilly Thank you. MFJ, 2 small kids, his W-2 of $11.000, his sch C $91000 LOSS, interest income $200, Itemized $31,000 (includes medical of $21000), IRS says they got $900 for the rebate sent in 2008 (for line 70 schedule - on line 28), and withholding of $509 Program computes no tax and no rebate, just a refund of $509. IRS just sent a check for 1809 Quote
kcjenkins Posted June 2, 2009 Report Posted June 2, 2009 There have been numerous reports of the IRS making errors on these, even if you use their own website to check how much they already got. That's beyond our control. Quote
Don in Upstate NY Posted June 2, 2009 Report Posted June 2, 2009 MFJ, 2 small kids, his W-2 of $11.000, his sch C $91000 LOSS, interest income $200, Itemized $31,000 (includes medical of $21000), IRS says they got $900 for the rebate sent in 2008 (for line 70 schedule - on line 28), and withholding of $509 Program computes no tax and no rebate, just a refund of $509. IRS just sent a check for 1809 I agree with the program. With no tax due, no net earned income, and no social security or veteran's disability pay, they don't seem to qualify for any EIC, child tax credit, additional child tax credit, or recovery rebate credit. What they do seem to qualify for is a NOL, which can result in a partial or full refund of the taxes paid during the past five years. See Form 1045. Quote
jainen Posted June 2, 2009 Report Posted June 2, 2009 >>I agree with the program.<< Well, I don't, at least assuming (without any foundation whatsoever) that the data was entered correctly. I think the IRS is probably right this time. With two children and qualifying income exceeding $3000, they get $300 more for the Recovery Rebate Credit, plus the $509 withholding. I'm not sure where the extra thousand came from; perhaps a forgotten ES payment or the Child Tax Credit. The IRS will tell you, but you have to ask the right question. The fact that three IRS reps and some several software techs ALL gave answers that did not resolve the matter suggests to me that you are not formulating your question correctly. In my first post in this thread I also felt that you were not formulating your question correctly. Quote
PSTX Posted June 2, 2009 Author Report Posted June 2, 2009 >>I agree with the program.<< Well, I don't, at least assuming (without any foundation whatsoever) that the data was entered correctly. I think the IRS is probably right this time. With two children and qualifying income exceeding $3000, they get $300 more for the Recovery Rebate Credit, plus the $509 withholding. I'm not sure where the extra thousand came from; perhaps a forgotten ES payment or the Child Tax Credit. The IRS will tell you, but you have to ask the right question. The fact that three IRS reps and some several software techs ALL gave answers that did not resolve the matter suggests to me that you are not formulating your question correctly. In my first post in this thread I also felt that you were not formulating your question correctly. For this return, the IRS said it was the recovery rebate credit only. Quote
Don in Upstate NY Posted June 2, 2009 Report Posted June 2, 2009 I think the IRS is probably right this time. With two children and qualifying income exceeding $3000, they get $300 more for the Recovery Rebate Credit, plus the $509 withholding. ... But with a W2 for $11,000 and a $91,000 LOSS on Schedule C, they don't have ANY qualifying income. Quote
Jack from Ohio Posted June 2, 2009 Report Posted June 2, 2009 At the firm where I work, we did 2,900+ returns so far for 2008. We have had 14 notices sent to clients saying our calculations for RRC were incorrect and lowering the amount of refund submitted. 14 phone calls later, (that is one of the jobs I do) all 14 were changed to the amount we originally submitted. Each time the IRS person said that THEIR system made the error. The IRS system SUCKS BIG TIME for calculating the Rebate Recovery Credit. To be fair, there were a few times when the client received MORE RRC than we submitted. Each of those times it was input error by the preparer, or taking the client's word about how much RRC they already received. The boss had early on sent the memo telling everyone to check the IRS site for EVERY taxpayer, no matter what they tell us. My point is, that ATX calculator was RIGHT ON every time that all the correct information was input. Quote
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