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Author: dengdeng Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121061  
Subject: more tax credit confusion! Date: 7/29/2001 10:55 PM
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Hello-

A few months ago, everyone told me that I would be receiving a tax credit for 2000 taxes (I know that everyone is still waiting for them). They said that if you filed $6000 you would be eligible for $300 back, and if you filed less, you would be refunded a reduced amount. I am a college student, and I filed about $4000 for 2000, and there was about another $1000 that I didn't file (because it was work-study, and wasn't taxed). So, I reasoned, I should be getting a check for $100 or $200. But I just received a statement from the IRS saying that because I didn't have taxable income or was listed as a dependent on someone else's return (and I was NOT listed as a dependent), I will not be receiving a check. Can anyone fathom why, or should I call the 800 number they provide? Thanks for the help!

dengdeng
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Author: lorenzo2 Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 52914 of 121061
Subject: Re: more tax credit confusion! Date: 7/30/2001 12:17 AM
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I'm not quite sure what you mean when you say that you filed about $4000 on your 2000 return - do you mean that was your earned income? If so, you would have had no taxable income at all (after taking the standard deduction), and that's why no rebate. To qualify for a check, you have to have had taxable income and a net tax liability. It sounds like you didn't...

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Author: Bob78164 Big red star, 1000 posts Old School Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 52915 of 121061
Subject: Re: more tax credit confusion! Date: 7/30/2001 12:34 AM
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dengdeng writes (in part):

I am a college student, and I filed about $4000 for 2000, and there was about another $1000 that I didn't file (because it was work-study, and wasn't taxed). So, I reasoned, I should be getting a check for $100 or $200. But I just received a statement from the IRS saying that because I didn't have taxable income or was listed as a dependent on someone else's return (and I was NOT listed as a dependent), I will not be receiving a check. Can anyone fathom why, or should I call the 800 number they provide? Thanks for the help!

I reply:

There's one thing to add to lorenzo2's reply. If your income is higher this year, so that you will have taxable income, as a substitute for the rebate that you're not getting you'll get the benefit of the new 10% tax rate on your first $6000 of taxable income (over and above your deductions). --Bob

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Author: acm4tax Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 52924 of 121061
Subject: Re: more tax credit confusion! Date: 7/30/2001 2:24 AM
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The refund is an advance on your 2001 taxes based on your 2000 taxable income after all credits (like education credits in your case). So you are not eligible for the advance refund.

I am a little concerned about you comment there was about another $1000 that I didn't file (because it was work-study, and wasn't taxed.

If you received a W-2, it was subject to taxation, but exempt from Social Security and Medicare taxes. And because of your low income, it may be exempt from withholding. So as low as your income was, it's no concern on your federal return, but it may be a problem with your state tax return. Call your state treasury income tax division and ask anonomously if it is taxable on the state level. They'll probably tell you if it's taxable on the federal return that it is. So if you got a W-2, it is reportable income. Just didn't want you to think you had some tax free money if it really wasn't. Pell grants are tax free as are scholarships and fellowships used for tuition and fees - but not for books, supplies or equipment or room and board.

Best wishes.

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Author: japper Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 53135 of 121061
Subject: Re: more tax credit confusion! Date: 8/7/2001 9:25 AM
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I think that the key here is whether or not you were claimed on your parents' forms. If so, you will not receive a check this go 'round.

Jenn

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