Economic Stimulus Payment

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- Larry Israel
  
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posted
15 years ago

Mon, Nov 24, 2008 7:04 PM

Due to my laziness in filing income tax, I had to pay interest. I sent a check, but at the same time the IRS decided to save me the trouble and deducted the amount from the economic stimulus payment. Now the end of the year approaches, and I want to know what to do. The following choices seem reasonable:

1) Write to the IRS and explain the situation, and ask for their help. 2) Count the amount withheld as estimated tax/overpayment, and deduct it from the 2008 income. 3) Kiss my seven dollars and thirty cents goodbye.

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- Phil Marti
  
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posted
15 years ago

Mon, Nov 24, 2008 9:53 PM

When did you pay the additional tax? When did you file the return? When did you get the stimulus payment? Specific dates, please.

A note to lurkers. When you owe IRS interest it's best to let them bill you for it. The amount won't go up, assuming you pay it promptly when you get the bill.

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- Paul Thomas, CPA
  
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posted
15 years ago

Tue, Nov 25, 2008 1:28 PM

"Larry Israel" wrote

They'll work it out and refund the difference to you in short order. Remember that to the government "short order" means taking their time sending your money back, so anticipate several months for things to settle. My guess is, at this point in time, maybe by the end of January they'll refund the overpayment.

DO NOT adjust the numbers on your 2008 return for any of this or you'll just extend the problem into the 08 return. "Wash, rinse, repeat" is what you want to avoid. Just let it play out all on it's own.