Payday loans help with small tax refunds
Former President George W. Bush
You may need payday loans after reading this.
Julia Sullivan of National Spending Journal has some bad news for you. If you were lucky enough to receive an economic stimulus check in 2008, that amount will be deducted from any refund you’re due to receive in 2009. Think of it as a Three Stooges-style “nyuk nyuk,” complete with a belt to the chops.
That’s right, you weren’t being given free money like you thought. That was an advance on this year’s tax refund. Doesn’t this news come at a great time for Americans who are wondering if they’re going to have a job tomorrow? Gosh, I’m tickled.
The government takes your money and gives it to bad banks
Remember how good that $600 dollar check felt? American workers were having a tough time then. Now, things are much worse. If you received more than $600 due to a family-sized refund, expect a family-sized reduction this time around. This could very well be part of the economic stimulus incompetent or unrepentantly greedy banks receive under President Obama’s watch. Let’s hope he changes his mind about capping payday loans. They’re much cheaper than tax refund loans.
Here’s Sullivan’s blow-by-blow of what has happened. Apparently, the stimulus was a sign of a change to the 2008 tax code (that’s this season’s taxes). It was an elimination of the 10 percent tax on the first $6,000 in income (which is where the $600 figure for the stimulus checks came from). The hope was that consumers would spend the money and stimulate the economy.
However, results were less than satisfying. Consumer spending is down, while saving has increased. But have we saved enough for a deeper winter? Guess we’ll all find out for ourselves. Until then, remember that payday loans are an option if you need a short-term bridge over surprise expenses. If you can’t remember how much “stimulus” you received in 2008, check with the IRS here. For more on the “stimulus” program, click here. Plus, check out the video below. Some are trying to turn this stimulus fear into a scam. If you need assistance with tax trouble click tax resolution/settlement.
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I’m happy I was able to help you. There is usually a reason, but sometimes the IRS does make a mistake, so it never hurts to be sure.
Pat, you are right, I went back into Turbo tax and had clicked that I hadn’t received a $600 check, which is somewhat true due to the fact that I am self employed and the stimulus check never came but went to pay off back taxes. OOOOPS..
I have found many times when people filed their 2008 tax return, they put down that they did not receive a stimulus check or stated they received less than they actually got. With some tax programs this will make their refund increase by the amount they should have gotten. Then when the IRS finds out they did actually receive more on their stimulus check than they stated, and therefore received more refund than they should have, they request the additional refund back.
Funny, I just got a letter from IRS saying I owe $600.00 more on my taxes because I got the stimulus last year…what’s up with that?
Excuse me, but my facts are straight. Look up the statistics for yourself, they are all over the internet, you will find I am right. I never said all races didn’t have children born out of wedlock, I just pointed out one race has about 70% born out of wedlock.
As far as this being about taxes and money….EXACTLY!!!! These people are a drain on our economy and our TAXES.
Pray for those cheating the system, they are the ones who need them.
Did anyone catch what that one lady said about a certain race with illegitimate children running around? How dare you, when all races consist of children born out of wed lock.And if you are a true professional, you should get your facts straight before running off at the mouth. This article was suppose to be about taxes, and money. You took it too far. Air out your feelings about race, and free loaders on another site. I will pray for you.
I believe people are getting very confused with what they are reading and then trying to interpret it to what they received in there tax return. Everyone will receive a different amount but if we did or did not receive a stimulus check last year should not matter but obviously it does either wise they wouldn’t ask!
This website is utterly ridiculous– the guy who wrote the original article is enjoying himself getting people worked up about something he just made up.
As people are trying to tell you, the stimulus in 2008 was a tax cut for your 2008 tax return where the US Treasury/IRS did its best to give you your money up front by mailing you a check instead of making you wait until you filed your 2008 tax return in 2009. If you got it in 2008,then you don’t get another payment in 2009 when you file your tax return, but if you didn’t get it in 2008, the IRS may give it to you now in 2009. But you don’t get to receive it twice, and no complaining about lawyers, accountants, Obama, or bank bailouts will get you a double payment. If you feel bad about having gotten it in 2008 and spending it already and wish you had just gotten it now when you really need it, that’s too bad– you still don’t get it again. Simple enough to understand?
As far as these payday loan people, I guess their point is that if you don’t have any money now and wish you could get an extra stimulus payment every year, you won’t, so they figure you should do a payday loan– but not finding moeny in the street or winning a lottery is also just as good a reason to get a payday loan– there is no reason to focus on the fact that the government is not giving you more money in 2009. They didn’t give you a stimulus check in 2007, 2006 or 2005 either, did they?
The only way I can figure the refund would come to the person less than what they figured they would get is if they put on the tax return that the amount they received was less than what they actually received, for example; they entered $300 when they actually received $600. The return would show they were due $300 more in stimulus, but when the IRS runs it thru their system, they find that the person did in fact receive the full $600, so they deduct the $300 extra showing on the return from the refund.
I really think some people think if they put they received less than they actually received, the IRS would be too stupid to catch it and send them some more.
And I love the arm chair experts who THINK they know more than us professionals who actually go to college and take Continuing Ed each year to learn all the tax changes. We don’t get our information from chat rooms and discussion boards and every Tom, Dick and Harry on the internet. We get our information from the source…the IRS.
I have done well over a hundred tax returns so far this year and not the first one was affected by the stimulus checks they received last year unless they did not receive as much as they were due and then it increased their refund (or lowered the amount due).
Just to be sure, I and a couple of other accountants in our firm, did several returns by hand, purposely leaving off anything to do with the stimulus. The refunds (or amount due) were exactly the same as the returns done using the rebate recovery worksheet.
I love the “legal language” used how “it doesn’t lower your refund or increase the amount you owe” but TOTALLY not explained to taxpayers that it WAS AN EARLY REFUND OR AMOUNT OWED on your 2008 taxes…I just love corruption and lawyers in this country. God I love our federal government hard at work screwing us over!
KnowsLittleBit:
Yes, your stimulus check does not lower your return neither will increase it.
Lies lies lies….Do you work for the IRS?
If you knew anything about doing taxes, you would understand that that worksheet is to ONLY refigure your stimulus that you received and see if you are due more. It does not take away or deduct the stimulus you received.
You apparently did the worksheet wrong.
does anyone knows how to read instuctions?
Did anyone open IRS 1040 instuctions document?
here is a link: http://www.irs.gov/pub/irs-pdf/i1040.pdf
Please scroll to pages 61, 62, and 63.
Try to fill that worksheet there.
What is on line 28 of that worksheet?
Suprise, Suprise, Suprise.
It is YOUR Stimulus Check amount.
Yes, your stimulus check does not lower your return neither will increase it.
But, you need to count those money as you received them in advance.
I don’t know how someone can think that there is a such thing as FREE MONEY.
There is nothing free in this world.
Anything that you see as “FREE” is a fake feeling that you are getting something for free. Look better and you will see in what trap you are going to fell.
I knew that this will be on my tax return and I didn’t spend a dime from that check until I see how it will afect my return.
I’m sorry for those people who were thinking that there is a something as free lunch.
As for those “TAX PROFESSIONALS”, Buyer Beware.
Many of them don’t know how to read instructions less how to fill a tax returns.
I had many years ago one company do my taxes and after I saw what they are doing – NEVER AGAIN.
If you decide that someone do for you, ask for GUARANTEE in WRITTEN that any fees , penalties, etc.. by IRS will be paid by that person if you get cought by IRS. You are totaly responsible for ALL ERRORS on YOUR tax return. It’s your tax return, not someone else.
if you have wrriten guarantee you can go to court at least and ask for damage to be paid to you by that tax prepartion person.
From what understand the stimulus will come in the form of an income tax rate cut, which for the average worker (whatever that means) will be about $13 a week. I don’t see that helping the economy much and certainly not the average worker. It just about amounts to the difference in buying ground beef instead of hamburger.
I am tired of working my butt off so those who don’t work or work very little can live better than me.
I make decent money, but after high insurance premiums, high deductibles, co-pays, no Rx, dental or eye care, no food stamps, no free school breakfast and lunches, no housing assistance, no childcare assistance, no transportation assistance, those who don’t work or work very little, who have a bunch of illegitimate children (approx 70% of the children born of a certain race are illegitimate) running around, live better than me. I don’t get the free medical and all the above mentioned and more that I work hard for. I don’t get a huge tax refund beyond the taxes I actually pay (many of which receive it thru fraud) . I am tired of working so those who have no morals and breed like animals in the woods, who find it more lucrative to live off the system than get out and work, can live better than me.
I also understand the average food stamp recipient for a family of 4 will receive a raise in food stamps from $588 to $679. That is about double what I can budget for food!!!!!
I have no problem helping those who have lost their jobs thru no fault of their own, because I know they will be back to work as soon as they can.
I’am confuse here .. Or we getting a stimulus check . or not …
Denise, you were on the money….right up until you confused the uninformed idiots as being Palin/McCain supporters. Obama’s disasterous start clearly shows who lacked intelligence in the voting booths.
Oh, btw people. Stop listening to the dumb@ss conman from the “Personal money store.” He’s flat out lying about the effect (there is none) of the stimulus check. Actually, I think he was trying to convince you all that it would have been better to WAIT for you money than to get it early….. because you need it now. Brilliant.
This is a perfect example of the uninformed American public. LOOK it up people. NO, your tax rebate stimulus check is NOT deductible from your return. Pat (a few posts above) said it very succinctly. (I’m thinkin’ the folks that believe this voted for Palin/McCain and think Joe the Plumber should be our next VP next to Caribou Barbie!!
Will you guys chill? Obviously everyone is in trouble with money. The stimulus check was to stimulate the economy, just b/c it didn’t work doesn’t mean the gov’t is going to take it out of your tax refund. And good grief, Obama’s only been in office one month give him a break. I didn’t vote for him, but imgine if you had to fix the problems the last 20 years of presidents caused…
Dont believe everything you read on the net folks, this article is completely false, lol. Our tax refund was the biggest it has ever been this year.
I would suggest people go to the IRS website to get actual facts about the 2007 stimulus.
http://www.irs.gov
This is a cut and paste from the IRS website
I have also included a cut and paste about the Recovery Rebate Credit. This is used if you did not get the total amount of stimulus you should have. If your tax refund is lower, there is some other reason or the program you used is wrong, the stimulus checks have nothing to do with it.
The link to the IRS website for this information is; http://www.irs.gov/instructions/i1040a/ar01.html
What is it? It’s an economic stimulus payment that more than 124 million households will receive. It’s not taxable, and it won’t reduce your 2007 or 2008 refund or increase the amount you owe when you file your 2008 return. Payments started in May and will continue through the end of 2008.
Recovery Rebate Credit
This credit is figured in the same manner as the economic stimulus payment you may have received in 2008 except that your 2008 tax information is used to figure this credit. Your 2007 tax information was used to figure your economic stimulus payment.
You may be able to take this credit only if:
You did not get an economic stimulus payment, or
Your economic stimulus payment was less than $600 ($1,200 if married filing jointly for 2007), plus $300 for each qualifying child you had for 2008.
However, you do not qualify for this credit if all of the following apply.
You received an economic stimulus payment of $300 ($600 if married filing jointly for 2007) before any offset (see Refund offset on page 55),
Your 2008 tax on Form 1040A, line 28, is $300 or less ($600 or less if married filing jointly for 2008),
Your 2008 filing status is the same as your 2007 filing status, and
You do not have any qualifying children.
Use the worksheet that begins below to figure the credit you can take, if any. Or you can use the recovery rebate credit calculator on http://www.irs.gov.
If you are not required to file a return but are filing only to get this credit, be sure to fill in lines 7, 14a, and 42 of your Form 1040A.
There are so many people on here with very strong opinions. We encourage this type of debate and applaud all of you for taking the time to comment.
Strangley enough the seemingly more educated people commenting seem to be furthest from the reality many people face in these hard economic times. Just ask yourself one question:
“If I did not receive the tax stimulus check last year, would I have recieve a bigger refund right now this year in my pocket?”
However you want to explain away the details is fine. The fact of the matter is that many people did not want a partial refund early or now they have decided they would rather have not recieved it in the first place.
Many of our staff members would have recieved a larger refund check now had they forgone taking the stimulus payment last year. There is no way to explain those details away to them. All regular people know is they could have gotten more in this exact payment right now had they not ever recieved the payment in the past.
It does not seem hard to figure out the logic. If you did not get it last year they add it to this year’s return. How does that not appear to be a disadvantage in the eyes of those who received it last year but really need it this year?
zipit,
From what I have heard, and please don’t quote me on this because it is just what I heard, some of the personal tax programs like Turbo Tax were erroneously figuring in the stimulus checks from last year at first. I was told they did an update to correct it, but that came after many had already filed their returns.
Another reason could be, you may have entered the stimulus in “other income” or some place else on your return. The amount of the stimulus should not be entered on the tax return at all.
We accountants review the new tax changes and laws each year and I can tell you the stimulus check had absolutely no effect on the tax returns filed this year. I have done well over a hundred returns so far this year using a professional accountant’s program. Not the first one was rejected and not the first one deducted the stimulus from the refund amount, nor added it to the adjusted gross income affecting the tax liability.
If the taxpayer did not receive the full amount of stimulus they were due, it is added to either the refund or they will receive a separate check. But the IRS will figure that part and it should not be put on the tax return in any place. Any over payments of the stimulus do not have to be paid back.
Michele,
The only thing I can tell you is to go to a tax professional and have your taxes refigured. You may have to file an amended return to get this all straightened up. Many professionals will do the estimate for free and only charge you if you need to file an amended return.
Pat. Can you explain then why on the 1040ez for example, the stimulus payment (rebate) is added to the total tax?
Then if it didn’t make a different, why did I have to fix the amount when they rejected it. From what I understand, the government put into effect a new tax law that would give us eligeable for a larger tax refund potentially. With this legistlation in place, they figured they would give us the money up front instead of wait till now in the hopes that we would spend it and help the economy. Since I recieved that portion of my tax refund early, I don’t get it now.
Michelle.
When you erroneously put in the $600 that you had received, the program figured your refund for an additional $600. It then rejected it, because the IRS files showed you had already received your $1200.
I am a tax accountant, the stimulus check you received should NOT be deducted from your refund.
Turbo Tax is an accoutants dream, we make a lot of money off their mistakes.
From what I can tell those on benefit may receive a payment whereas those working and paying tax will just see a small decrease in the amount of tax they are paying.
I do not understand how ANY of you are saying that it does not affect your taxes this year. I did my taxes on Turbo tax AND went to H& R, got more of a refund with Turbo Tax AND they even told me the stimulus check was an advance. I filed my taxed e-file and when I accidently put in my stimulus check for my husband and I as only $600 instead of the combo of $1200 they REJECTED my file. I was going to get $5300, then when I fixed the mistake, my rebate dropped exactly $600…. amazing how that worked. IT WAS AN ADVANCE on my rebate and now I get $1200 less then I would normally. If I had the choice, I would NOT have taken the stimulus check!
I cannot believe the irresponsibility of this article and the gullible, uninformed comments of some of these posted responses.
If you received a tax stimulus check last year, be it $600 or $1200 or more, it WILL NOT IMPACT YOUR TAXES OWED OR REFUND THIS YEAR.
Here is the simplest way to explain it. Congress passed and President Bush signed into law last year a bill that lowered taxes for the 2008 tax year (these are the tax returns you’re filing now). Most low and middle income tax payers were given an advance on these lowered taxes in the form of a stimulus check. When you file your taxes this spring, you will not gain anything or be penalized because of last year’s tax cut. In essence, you’re filing under the same tax rates as were in place a year ago. The positive thing is that you got the product of your tax cut early ($600 stimulus check).
You are NOT being taxed on that $600 check this year. It is NOT reducing your refund in any way shape or form. In fact, if you DIDN’T get a stimulus payment last year, you may qualify for some or all of it this year when you file depending on your 2008 income and other factors.
If your refund is lower/higher this year than it was last year, it has nothing to do with the 2008 tax stimulus. You perhaps made more or less money this year and were taxed more/less. Perhaps less money was witheld from your paycheck. Perhaps you had different deductions than you did last year. For example mortgage interest paid on a fixed rate loan will be less each year as you pay the loan down more of your payment is directed to the principle balance of your loan – thus less interest to deduct from your taxes.
This author does everyone reading the article a disservice. Consider the source and his motivations.
I am a retired accountant and am working part time this year at one of those “fast tax” places just to earn a little extra mone.
I would never go to one of those places to get my taxes done. Not only do they rip you off in fees but they haven’t a clue what they are doing and can mess you up royally.
They give them 5 or 6 hours training, mostly on how to use the computer program and turn them lose on the public.
I do know for a fact H & R Block at least puts their people thru very good training
It must be awful to be in such dire straits that one would be willing to waste $400 or $500 of their refund just to get it a week sooner.
Please don’t continue to put the idea in people’s heads that last year’s stimulus checks are being deducted from this year’s refunds. They are not.
Let us suppose that last year’s stimulus check was to be deducted from this year’s refund. It would still be a no interest loan for how many months? These payday loan vultures would have you take out an extreme interest loan (probably 21-27%) because you want money now. Wake up and smell the crap they are peddling.
The stimulus check from last year has no affect on this year’s tax return. I had an accountant do my taxes, and I am getting back double what I got last year. Using turbo tax, or any other computer based tax program only hurts you. It won’t figure in any deductions that you might be entitled to.
I heard on the news last night that people were claiming the stimulus check last year as earned income and YOU ARE NOT SUPPOSED TO.
This is exactly what is happening. Many are putting in “other income” or credit adjustments, or other places.
The is the reason people shuld not do their own taxes, even with the prgrams out there, if they don’t know exactly what they are doing.
If you did report the stimulus you received on your tax return, you can always file an amended return.
Many of the tax programs are erroneously figuring the stimulus and the IRS will catch the error. It is NOT deducted from your tax refund. Based on your 2008 income, as reported on your tax return for 2008, if you did not receive as much as you were supposed to, you will receive the difference with your refund. If you received more than was due you, it does not have to be paid back.
I was under the impression there WAS NO stimulus check this year, only the stimulus package that cost billions????
I heard on the news last night that people were claiming the stimulus check last year as earned income and YOU ARE NOT SUPPOSED TO. Maybe this is the reason for less money back this year???
Instead of getting $100 back, I owe $500 when the stimulus is put into the tax return. I just did my taxes and the program says I owe. Thanks Bush!
Yeah but he was right. I too thought I was getting free money with the stimulus check last year. You can only imagine the confusion when I saw that i was getting back 1,900 DOLLARS LESS THEN WHAT I RECIEVED LAST YEAR ON MY REFUND. So yes that money was an advance.on this years tax returns. I recieved almost 4,000 dollars back last year and this year that amount was nearly cut in half after I entered the stimulus to my 2008 tax return. You can word however you want. It WAS AN ADVANCE!!!!
Your 2008 stimulus check does not decrease your refund. The tax programs ask what amount, if any, you received, but only for the purpose of determining whether you received everything you were entitled to. If you received your $600 (or $1,200 for couples) last year, you won’t get any additional stimulus money in your refund. If, for some reason, you did not receive a stimulus payment last year, you enter $0 in the payment received field and you’ll get that $600 or $1,200 added to the return you’re currently working on.
In other words, you won’t get screwed now for getting a stimulus payment last year. You can only be helped now if you did not receive it last year.
Maybe you should think about what you just said. Anytime you get a refund early, then the time comes for the real refund, do you really think people are going to understand they already got part of their refund?
It is a shock to every staff member here and everyone we have talked to that the amount of the stimulus is deducted from this years tax return. It is only a technicality to say it does not reduce your tax refund.
In real life people have no clue that their tax return will appear to be lower this year than last. Most people thought the stimulus check was free money and not an advance on this years refund.
For many people this is a hard economic blow. They were expecting to get caught up on bills or buy some new things and now they may not be able to fulfill that expectation.
What is cheaper a payday loan or an overdraft, a late rent or mortgage payment or a payday loan, a late utility bill or a payday loan. It always amazes us how easy it was for big banks to blind everyone into thinking their cheaper lending competitors (payday loans and installment loans)are the devil.
Use this calculator to see the real APR of your overdraft fees or late fees. http://personalmoneystore.com/loan_calculator.php
THIS INFORMATION IS INCORRECT, perhaps deliberately so to get gullible people to take out a high interest payday loan
From H & R Block’s website
Your 2008 tax rebate payment will not decrease your refund when you file your 2008 return, nor will it increase your balance due. It was an advance credit that you received early; if you’ve already received the full amount to which you’re entitled, you won’t receive any further credit. If you’re eligible to receive a higher payment based on your 2008 return, you will receive that additional payment when you file your 2008 return. If you received more than you were eligible to receive, you do not have to pay back the difference.
It’s just another form of payday loans. The difference is there were no contracts and people verbally signed into an agreement without even knowing.
What strikes me about this issue is that a huge chunk of the taxpayers’ money went to nourish the greedy kings of Wall Street. Even with their wrists wrapped up with fancy Rolex and jewelries and their mouths filled up with diamonds and caviars, they are still hungry for more.
Alright, that is below the belt. I hardly think that we should be penalized for being given a break right before it got worse. Not to mention that we the tax payers, are already going to be paying for the borrowed funds to bailout all these banks that bought corporate jets with the funds – not to mention that it was the finance and banking industry’s faults that the housing market crumbled and started the current recession. Not ours the taxpayers.