I'm preparing my own taxes and the software i'm using is asking if I rec'd the stimulus rebate. I answered yes and typed in the amount. This reduced my amount of my refund but when I click on the "Explain this" link, it states "this credit does not need to be repaid nor subtracted from your 2008 tax refund". My question then is why is it reducing my 2008 refund amount? Did I miss something?
What happens is this is for people who did not receive it last year. Whether their income had been too high in 2007 and dropped in 2008 or their SS# was wrong and they did not receive the check. It lowered the amount that you got back b/c it automatically figured you didn't get it and thus was giving it to you. You're not being taxed on it.
that's really strange,,,I just did taxes, and the amount was not reduced. Though I was thinking it would be as I know happened before with other stimulus rebates. Maybe you should try a different software, good luck
From what I understand the stimulus check counts toward your earned income and since they didn't take any taxes out of your check you are paying for them now, which is why it is reducing your refund. They either took it out then and you recieved less money or they take it out now and all that it effects is your refund amount.
