I was very surprised to enter an income into TaxCut and see my tax go down. I traced the decrease to getting a Recovery Rebate Credit; line 70 on 1040. I did not get one last year, but apparently I might qualify now.
I am looking over the worksheet and it is amazingly confusing. Can you give me a hint as to what makes one qualified, or unqualified?
Did you not get a stimulus check last year?
If you didn't get your $600, $300, $1200 or whatever it was last year, or got part of it, you may get the remainder this year if you qualify. Basically you need to have a valid social security number, income below a certain threshold (the phaseout is from 75k to 87k for single filers if I remember correctly), etc. If you had a new child in 2008, you qualify for an additional $300.
One of the most maddening features of software is the fact that it updates after every entry. The bottom line isn't the bottom line until the return is done. By the time you finish your return that credit may disappear because of further developments.
For example, I have a small amount of W-2 income on my 2008 return. When I input that to my software it showed that I'd be receiving the Earned Income Credit. Of course, after I input my pension that credit went away.
So please don't come back wondering why if your RRC isn't there in the end. Once the return is done you can look at the worksheet to see why you did or did not qualify.
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