MY 2008 INCOME IS HIGHER. DO I STILL GET A STIMULUS CHECK FOR 2009?

I had an unusual situation in 2008 that boosted my income from all sources (gross and AGI) by about $15,000 over normal (to over $100K). $11,000 of that went direct to Uncle Sam (I withdrew $ from IRA to pay tax bill on 2007).

Does that mean zero stimulus package payment for me and my husband? Is there an appeals process for special situations?

Nancy

Nancy, sorry, no appeals are built in, but you may not be in a bad spot. I presume that you are referring to the 2009 stimulus, not the 2008 stimulus. (It would seem that we should be pretty stimulated with all of this so called stimulus that they are throwing around). Anyway, here is the deal on the 2009 law.

· Since you are an employee you will get the stimulus through a reduction in your payroll taxes. The money will come though a higher payroll check estimated at about $13 per month. You will get this no matter what.
· The IRS gave your employer new payroll withholding payments. You should probably have seen an increase in your net payroll check.
· When you file your 2009 tax return (by April 15th of 2010) you or your tax preparer will determine whether or not you qualified. If you did not qualify, you will have to pay the money back with your 2009 1040.
· Since you are married, in order to qualify, your adjusted gross income (AGI) for 2009 would have to be under $150,000. The additional money that you made in 2008 makes no difference; it is just your 2009 AGI.
· If you are wondering what you’re AGI is, for 2008 it is on line 87 on the bottom of page one of your 1040.

Please let me know if you have any other questions or if your question was on the 2008 stimulus.

It is a pleasure serving you.

Larry Kopsa CPA