I made 1 stupid error, now why don't I get my stimulus rebate?

Question

I did an ammended 1040x, and now I call the IRS and explained that I had accidently put a wrong number for my income (under $3000). My accountant changed it and now it is correct at $4000. I was told they are only looking at the original 1040, and not the new one. WTF?? 1 wrong mistake and its like I'm out $2100. Do I have any recourse??

Answer 1

You will get it with next year's taxes.  Just think, you will be one of the very few of us that gets one next year!  

It sounds like you are upset so you are probably looking for somebody to blame.  Remember it was you accountant who screwed up, not the IRS.  We all knew the rules - or he should have - his first mistake was doing the return wrong - his second was not telling you that the amendment would not fix it until next year.  Time for a new accountant?

Answer 2

Sorry, the mistake you made meant that you were not eligible for the stimulus payment.  The payment is based on your original return.  How did you leave off the income in the first place?

If you make enough money in 2008 to owe any tax, you might benefit from the stimulus law on next year's tax return.  That's your only recourse - for this year, you aren't eligible.

If it's any consolation, you aren't out $2100.  You said in an earlier question that you are a family of five.  Your rebate would have been $1500, not $2100 - I know, that's still a lot of money.  But you and your husband wouldn't qualify for the maximum $1200 for the two of you.

Your earlier question also said his business had made $5000 - then you filed something under $3000, then amended it to $4000?

Answer 3

The IRS reviews every amended return.  If the amended return affects the tax then the return and the amended return will be audited.

Answer 4

You can claim it on your 2008 tax return as a Recovery Rebate Credit.  Apparently, amended returns will have no impact on most stimulus payments.

Q. Will filing an amended return affect my stimulus payment?

A. In most cases, an amended return will not affect the stimulus payment. While amended returns will be processed to correct the income, deductions and income tax as appropriate, the economic stimulus payment amount will not be adjusted based on an amended return. The reason for this is that the reconciliation provision within the Stimulus Act gives taxpayers an opportunity to claim and receive any underpayment amount as a Recovery  Rebate Credit when they file their 2008 return next year.

In very limited circumstances, amended returns that are filed solely to include previously unreported qualifying income may result in the issuance of a stimulus payment that was not issued based upon a taxpayer's original return. However, these circumstances are generally limited to low-income individuals and recipients of Social Security, some railroad retirement or certain veteran's benefits who filed their original returns prior to the IRS issuing guidance for their situation.

An amended return can result in a delayed stimulus payment if the amended return is received before the stimulus payment is issued. In this situation the stimulus payment will be issued, if applicable, once the amended return has been processed. Due to the high volume of amended returns received, please allow 12-16 weeks for the IRS to process your amended return before making any inquiries about your  return and stimulus payment.

Answer 5

I doubt you would have been eligible for a $2100 rebate.  If you filed as single, that would have required you to have 6 children under the age of 17.  (Or married, with 5 children.)

But think positively, your EIC probably went up by $500....

As for who made the error, the tax return is a team effort.  Your preparer should have walked you through it before submitting it.  If you didn't take in all of your W-2s, that's your fault.  If you are self-employed and forgot tor report all of your income, that's your fault.