Walter & Shuffain, P.C.
Certified Public Accountants & Business Advisors
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As you may be aware, many taxpayers received a stimulus rebate check in 2008. The stimulus checks were distributed to qualifying taxpayers and were subject to reduction based on income phase-out rules. In an effort to stimulate the economy and get the checks in the hands of taxpayers early, taxpayers received the checks based on their 2007 filing status and adjusted gross income. However, the checks were actually advance payments of the 2008 Recovery Tax Credit.
What does this mean for you? To the extent a taxpayer did not receive the check in 2008 due to being over the income phase-out limit, from their 2007 income, they may qualify for the credit on their 2008 return. A taxpayer would qualify if their 2008 adjusted gross income was below the phase-out limit. There are other circumstances in which a taxpayer that received a rebate check in 2008 may be entitled to an additional amount in 2009. For example, if a taxpayer had a child born in 2008, he or she maybe entitled to an additional $300 rebate check.
If you would like more detailed information, please do not hesitate to contact us.