My stimulus check amount has been reduced doe to "2007 qualifying income or '07 income tax liability?

Question

H&R block filled out our income tax, bad mistake I knew it wasn't right in the first place. My husband was supposed to get an accountant to look over it. Never did.

What is net tax liability? I see what our total income is on the copy of our form. I was self-employed and did pay taxes on the income.

Our original stimulus payment was calculated as $1243. My mother lives with us, and she was not considered a dependent by HR Block. However she added her as an exemption. It seems this is why we're getting screwed. This stimulus program is a mess.

On hold with IRS right now, not that they'll be any help I'm sure.

Someone please help, we paid our full taxes and should be entitled to the whole original estimated amount. If it wasn't for bad luck, we'd have none at all.

Answer 1

what everyone seems to have missed is that you are only ELIGIBLE up to a certain amount of the stimulus, singles are only eligible up to $600, couple $1200, children $300, the media advertised as though everyone would be getting those amounts, but it based on your tax liability, basically how much money you made in 2007 and how much you paid out in taxes to the IRS in 2007.  

Sorry to tell you but you may not be eligible for any additional money because it sounds as if your tax liability wasn't high enough to get the full payout for being married and having an eligible dependent.  after all they have already compensated more than married couple with out a dependent would get.....

Answer 2

Your net income tax liability is one of the following depending on which form you filed:

·On Form 1040, the amount shown on Line 57 plus the amount on Line 52;

·On Form 1040A, the amount shown on Line 35 plus the amount on Line 32; or

·On Form 1040EZ, the amount on Line 10.

You say your mother wasn't considered a dependent but was added as an exemption - if she was added as an exemption then she WAS claimed as a dependent, that's what the exemption is.  You don't get extra for the stimulus for a dependent who it not your child under age 17, so you wouldn't get extra for your mom.

You don't say what you actually got (or what the letter says you'll get) and if you have any kids and how old they are, so nobody can say whether your payment is right or wrong.

Answer 3

You never stated what was the error the preparer made.  If you believe your return is incorrect, go back to the preparer and have it reviewed at no cost.  You can go to the office that is open in your area.  If it is wrong, they will correct it for free.  Bring a copy of the tax return as well as the letter from the IRS, and your preparer will explain how the payment was figured.

Your mother being on your tax return will not increase your stimulus payment.  Since you have received an exemption of $3,400 for your mother, your taxes may be reduced.  This will reduce your stimulus payment, not increase it.

The odd amount of $1,243 is not possible with the stimulus payment.  If you file a joint return and have no children, you receive up to $1,200.  If you have dependent children, you receive $300 for each child.  

You would receive an odd amount only if you owed tax more than $600 and less than $1,200.  So $1,243 is not possible.

The Social Security and Medicare tax you paid for self-employment do not figure into your stimulus either.  What does count is the amount on Line 57 of Form 1040.  If you have children, add the amount on Line 52 to the amount on Line 57.