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Stimulus Payments May Bite Taxpayers In April

Posted By admin || 2-Dec-2009

Stimulus Payments May Bite Taxpayers In April

Stimulus payments may equal a bigger tax bill for millions of Americans.  More than 15 million taxpayers may owe the government $250 or more because of how the IRS organized last spring's tax breaks which were designed to help lift the economy out of the recession. Due to IRS errors everyone from married couples to struggling students may be forced to fork over up to $400 to Uncle Sam.

Who Should Be Concerned

If you worked two jobs you may have received a $400 dollar stimulus at both places of employment. One of those payments must be returned to IRS once you file your taxes.

Dual-income households. If you and your spouse both work and make more than $13,000 a year, you may need to return up to $400 to the IRS once you file you taxes.

Working students. If you were a single student who worked a part-time job you may have received a $400 increase in your take home pay. However, if your parents claimed you as a dependent on their tax returns you must return the full amount of the stimulus payment.

Working retirees. More than 50 million Social Security recipients received $250 payments; however, retirees who were working will have that $250 payment deducted from their tax credit.

Unfortunately, taxpayers who received extra stimulus payment in 2009 will face penalties imposed by the IRS. Those penalties will be removed but ONLY if you request it.  Remember, the mistakes made during this stimulus program are the fault of the IRS.  Don't pay for their mistakes. Please take the time to calculate how much you will owe at tax time.  If you are unable to pay your taxes on time, you can file for an extension, request payment plans or even defer payments. Note, interest may still accrue during any deferment or payment plan.

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