Accounting Group LLC May 29, 2008
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Accounting Group LLC
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Michelle The following are excerpts out of a recently published article that you may of seen in the news this week, published by the Seattle PI. It relates to reasons why many taxpayers have not received their stimulus checks yet, or won't get any or the maximum amount.

If taxpayers owe any federal debts, child support, student loans or other obligations, all or part of their tax rebate could be applied to those debts. The IRS will send a letter explaining why and how much of their rebates are withheld.

Taxpayers who filed joint returns also have learned that they won't get a rebate if their spouses didn't have a valid Social Security number. Congress had intended to exclude illegal immigrants from the rebates, but left out thousands of others, including U.S. service members married to foreigners. On Thursday, Congress fixed that by passing a $2 billion package of tax breaks that includes a provision saying active-duty personnel who file a joint tax return will be eligible for the tax rebate even if the spouse does not have a Social Security number.

Filers who had tax-preparation fees withheld from their federal income tax refunds, even if they elected direct deposit, will get their rebates by paper check instead. The IRS began sending out paper checks May 16 and is doing so by order of the last two digits of Social Security numbers.

Another area of confusion has been over whether college-age children are eligible for the tax rebate. You are not eligible for a tax rebate if your parents claimed you as dependent, even if you made at least $3,000 in qualifying income. And your parent would not be eligible for a $300-per-child tax rebate either, unless you were under 17 as of Dec. 31, 2007.

If you have any questions and have used me to prepare your return this past year please feel free to inquire about any additional questions you may have.

Sincerely,
Michelle Franz
Michelle J. Franz, Owner
Accounting Group LLC
http://acctgrp.com


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