Tax Refund Stimulus Check 2009
Question: 2009 Federal Income Taxes?
When we received the stimulus checks earlier this year, it was explained that this amount was an advance on our 2008 Tax Refund. So basically the tax tables in 2008 were reduced. Since the rebate was given to us, the amount withheld from our paychecks never changed. In 2009, I believe we are keeping the same reductions in place. Can I assume that my withholding will decrease?
Answer: No, the stimulus check was not an advance on your 2008 tax refund. It was based on your 2008 projected taxes (which were based on your 2007 income tax returns).
Nothing has changed. Taxes work the same exact way- withholding and all. The only difference is that, if you happen to have additional exemptions this year (if you had a baby or got married, for instance), then you’ll actually be entitled to an additional stimulus payment. If you got divorced or lost a dependent, then you get to keep the extra, even though you, technically, shouldn’t have gotten such a large check. In essence- if you deserve more, you’ll get more. If you deserve less than projected, you don’t have to pay it back.
I hope that helps. :0)
Filing Tips for the 2010 tax season prepared by CRI
To make the 2010 tax filing season less stressful, the accounting and advisory team at Carr, Riggs & Ingram, LLC (CRI) has identified several tips to help everyone better prepare for the filing season.
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