Itemized Deduction Reduction
April 27th, 2008
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Question: 2008 Federal Tax – Are we eligible for the rebate recovery credit?
I could not find the answer to our specific situation on IRS website, and their phone help is too busy to answer. We filed married/joint return in 2007, with 2 children (dependents.) The total stimulus we could have received was $1800, but we only received $1200. I am not totally clear on the reason for this, except that it had something to do with the amount of other credits we claimed and our total (low) tax liability for 2007 (the reduction was NOT due to owing back taxes.) Our filing status and situation for 2008 has not changed dramatically (no new dependents, etc.) and again, our total tax liability is low due to Itemized Deductions, child credits, etc. Can we claim the rebate recovery, which I believe would be $600? I realize we could have the IRS figure it, but I have heard that our refund would be delayed by a week or two and we would prefer not to wait, if possible.
Answer: The MAXIMUM amount you could have received, in your situation, was $1800 ($1200 for you and your wife, $300 for each dependant).
The MINIMUM amount you could have received, in your situation, was $1200 ($600 for you and your wife, $300 for each dependant).
You probably didn’t earn enough to qualify for the full $1200 and instead only got $600 for you and your wife, then $300 for each dependant, making your rebate amount $1200 total.
That means you probably do not qualify for a recovery rebate.
Items on Amazon Right Now for Itemized Deduction Reduction:
CCH Lists Ten Ways to Reduce Your Taxes Whether You Itemize or Not
You don’t have to itemize to find opportunities for savings on your taxes, according to CCH, a Wolters Kluwer business and a leading provider of tax, accounting and audit information, software and services .
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