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Monday, August 31, 2009

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Jeanie

Is there a 1040 Schedule M form for 2011? I can't find it anywhere. All the Schedule M's are for 2010 or before.

irs tax attorney

Part of the 2009 stimulus package was President Barack Obama's Making Work Pay tax credit, or Schedule M, which adjusted federal withholding tables to increase take-home pay by up to $400 for working individuals and up to $800 for working married couples.

Kay

G Hunt,
Are/were you expecting a refund? Did you get it yet? Was it what you expected? If so, I'd run my tax numbers again using the Schedule M and see if there's a change; if there is, then file an amended return, Form 1040X. Or the IRS might file the Schedule M for you; in that case your refund likely will be larger than your expected. So if a larger check shows up, that's probably why and you don't have to do anything.

G. Hunt

I filed my taxes manually but failed to notice the Schedule M requirement. Now what do I do?

Jack

Gendo is right that tax law gets changed every year, adding to the confusion. I always start working on my tax return by going straight to the "What's New" page of the instruction booklet. This avoids a lot of problems. I still almost missed Schedule M though, because it just doesn't look like the type of credit I could normally take.

I do have to correct one thing. The rich are NOT against flat taxes as they would benefit tremendously [except for the tiny percentage that manage to pay little or no taxes]. A flat tax, while easier at tax time, is regressive and is more of a burden to poor, middle and working class taxpayers. Right Kay?

Kay

Judy, the $250 went to recipients of Social Security, Veterans'and Railroad Board benefits, so just getting other pension money would not qualify a taxpayer. I suspect you are correct; your earned income was sufficient to earn you a portion of the Making Work Pay credit, which could be, but isn't guaranteed to be, up to $400 per worker. Kay

Judy Stevenfeldt

I live in the state of WA but get teachers' retirement pay from CA (NOT social security). My husband received the $250 refund last spring since he's on social security. I did not. My CPA filled out schedule M when doing our taxes, giving me the $250 credit. The IRS rejected the claim, but a phone call to IRS corrected that problem and I will receive a refund after all. Now a friend of mine here who also receives STRS income and NOT social security was told by her CPA that she's not entitled to the $250 claim (which her husband got through social security). Would the fact that I made a little extra money substituting last year while she had no income make any difference? We're both the same age. I believe we are both entitled to the $250 credit through schedule M, aren't we?

Marsia

Ok, it's tax time and I have filed my taxes through TurboTax 7 times now becase the IRS is rejecting my Schedule M I have fixed per their request each time and I get a rejection notice around 6 hour later. I changed it to show I did and my husband didn't he passed on 31 Jan 09. I am at my wits end, I need my refunde being a widow with 2 kids. I hope it goes throu this time. Can I get help with with?

Kay

Cindy, you're right. It wasn't there last year. It's a new form to account for the Making Work Pay credit money that you got in your paycheck from reduced withholding last year. The amount wasn't much per paycheck; just around $7 to $10 so that's why you probably don't remember getting it. Everyone has to fill out this form, so it's good you did. Kay

Cindy

I don't understand this schedule at all. I completed my taxes online yesterday and sent them off. Scehedule M was compelted online but I don't know if it should of been. After comparing last year and this year's taxes later on at home, I saw that this area was not there last year. I do not have a business and don't remember getting addtl. money back last year. Did I fill the 1040A out wrong this year?

Jack

Yes its a bit of a headache, but don't forget its a tax break. Don't have much sympathy for those who complain about keeping more of their money this year. It seems easy enough for me being self-employed, but not sure about my wife's situation. Thanks for the heads up.

Dave

Is it true the American Opportunity Credit is really 40% of the possible $2500 per student? Its the 40% no one discussed until I saw the 8863 form... Just wondering if I am missing something??????

David Nichols

Thaks for explaining Schedule M. You made it clear and understandable. A lot of people are going to miss this credit if they do their own taxes I'll bet.

Gendo Ikari

Every year, we're going to give the U.S. people a test. Except we change the rules every year. And if you get any questions wrong it costs you money.

Ah, taxes... trillions overpaid due to confusing rules which the government keeps happily, but god forbid you make a mistake in your own favor- you'll be fined and penalized ten times over... with interest.

And the rich keep arguing against "flat taxes" and simplified forms (that prevent hiding income through numerous loopholes) because it is "unfair to the poor!" Right.

PatriotCat says - Can we has revolution tiem now?

robin

is any body else sick of all this confusion? i bet the pharmicutical companies are getting rich at tax time. what with all the headaches everyone gets trying to fiqure it all out!

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  • Aug. 1: Welcome to August, the month that's home to the Dog Days of Summer. That prancing pooch is happy about this month and you can be, too, by taking some tax steps to lower your upcoming bill.

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    Aug. 1: The first weekend of August kicked off the 2015 state sales tax holiday parade. This year, 18 states -- Alabama, Arkansas, Connecticut, Florida, Georgia, Iowa, Louisiana, Maryland, Massachusetts, Mississippi, Missouri, New Mexico, Ohio, Oklahoma, South Carolina, Tennessee, Texas and Virginia -- authorized sales tax holidays. Three holidays were the first weekend of August, most are the weekend of Aug. 6-7, and a handful are mid-month.

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    Aug. 14: Summer will be over soon. Before the kids go back to class, squeeze in one more quick vacation. If you can combine some business with the personal trip, Uncle Sam might help pay some of your travel costs.

    Or maybe someone is renting your home or your vacation cottage on the lake. You can pocket some extra cash and not owe any federal tax on the short-term rental income. The key is to make sure that all your lodgers for the tax year stayed no more than 14 days in your primary residence or second home.

    Aug. 21: The Dog Days can be doggedly hot, so folks are always looking for ways to cool off. Swimming pools are popular, but expensive. Is there way Uncle Sam can help you cover some of those construction costs? Maybe, if the pool is a legitimate medical expense.

    Aug. 26: You bought the home of your dreams this summer. Even better, the move to your new abode was job related or you found employment soon after you settled in. That means you might be able to deduct your relocation expenses on your tax return.

    Aug. 31: It's been a quiet Atlantic hurricane season so far, with only Tropical Storm Bill posing any U.S. threat through July. But things typically heat up tropically as summer winds down. Remember, thought, the hurricane season runs through the end of November.



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    Small Business Tax Calendar: Important filing, deposit and record keeping dates throughout the year that your company needs to know. You also can view the full year's important business tax dates in IRS Pub. 509.

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