Question about stimulus payment in 2007

I have a quick question regarding the stimulus check we recieved. Some people have been saying that we will have to pay it back on this years taxes 2008. Is that true? They said it would come off you tax refund in 2008.

Benryanv,

I am sure the treasury would not mind having that stimulus check returned.
That is not required.

Some folks that did not get the Recovery Rebate Credit last year will get it this year. Think of situations where a child was born into a family in 2008, they will receive $300 for that child. Other situations of annual joint custoday, last year one parent received the $300, this year the other parent can claim the money for the same child!

Also college students that are/were dependents on their parents tax return did not qualify for any of the benefit last year. If that student dropped out of college or hopefully graduated, they may qualify for a full $600 on their own tax return.

Because this is a tax credit, it will be used first to pay your tax bill. When their is excess credit the credit will be returned to the taxpayer.

There is a 29 line work sheet to go through to determine how much of this tax credit can be place on line 70 of your 1040 return. The worksheet begins on page 62 of the draft 1040 instructions: http://www.irs.gov/pub/irs-pdf/i1040.pdf

clydewolf,

I have a question I had a child born this year in November. Does that mean I will get $300 for her on my tax return this year 2008 plus the $1000 child tax credit?

Benryanv,

Congratulations! Yes you may qualify to receive a tax credit of $300 for your newly born child. If you do not need this tax credit to pay your tax bill, the unused portion will be refunded to you.

The IRS has a 29 line worksheet in the 1040 instructions for you to determine the amount you can put on line 70, the Recovery Rebate Credit. See page 61 here: http://www.irs.gov/pub/irs-pdf/i1040.pdf

And you will also receive the Child Tax Credit of up to $1,000 for your new child.