2008 1040 tax return, line 71?

Question

I took a look at the draft of the 2008 1040 form and I saw on line 71 it says "Recovery rebate credit" and I wanted to know how that was going to work. The government said that our rebate checks would not affect our taxes for this year. What is going on???

Answer 1

If you didn't get the maximum rebate this year, you might be eligible to get the rest of the amount, or part of it, next year when you file.  If you got the max amt this year, or don't qualify for more next year, that line will be blank or zero.

Answer 2

For 2008, you generally can claim a recovery rebate credit of up to $600 ($1,200 if married filing jointly). Generally, the credit cannot be more than your 2008 net income tax liability (your regular tax liability plus any AMT, minus any nonrefundable credits you claimed other than the child tax credit). However, your credit will be at least $300 ($600 if married filing jointly) if you meet either of the following two conditions:

The total of your earned income, social security benefits (including social security disability payments), tier 1 railroad retirement benefits, certain veterans benefits, and nontaxable combat pay is at least $3,000, or

Your total income is more than $8,950 if your filing status is single or married filing separately ($11,500 if head of household; $14,400 if qualifying widow(er); $17,900 if married filing jointly), and your net income tax liability is more than zero.

If you meet either of these conditions, you can also get an additional $300 for each of your children who is a qualifying child for the child tax credit.

To be eligible, you and your spouse each must have a valid social security number. To get the additional $300 credit for a child, the child must have a valid social security number. You are not eligible to get a payment if you can be claimed as a dependent of another taxpayer, or if you file Form 1040NR, 1040NR-EZ, 1040-PR, or 1040-SS.

If your 2008 AGI is more than $75,000 ($150,000 if married filing jointly), your credit will be reduced by 5% of your AGI in excess of that amount.

Credit reduced or eliminated by economic stimulus payment.Your credit is reduced by any economic stimulus payment you received in 2008. However, if your credit is less than the stimulus payment you received, you do not have to repay the difference.

Answer 3

Repeat after me, you only get the rebate once.

The IRS is giving you two chances to qualify for the maximum amount.  

If you qualified for the maximum with your 2007 tax return, you get nothing more on your 2008 taxes.

If you got nothing, or qualified for $300, or had an issue, or had a baby in 2008, etc, you get a 2nd chance at the rest of the rebate.

Even if your 2008 tax return says you qualify for less money than you already got, you won't be asked to pay it back.

Under no way, shape or form is the IRS asking for any of the money back.  It's not taxable, nothing.

Answer 4

If the rebate is reflected in the change of the tax tables, then without the adjustment, people would could get the benefit twice. Once in the rebate check and once on the tax return.

If you got a rebate check, you must put the amount on line 71 to change your tax to the proper amount.