Posted on 02/15/2011 9:32:28 PM PST by OneVike
I need some advice from some fellow Freepers who may be able to give me some. I am filling out my tax form, I using the 1040A tax form. While filling it out I am directed to a form that is called Schedule M. I found out I qualified for it last year, after I paid my taxes. The IRS sent my wife and I a check for $500.00 with a letter stating we failed to use schedule m which qualified us for an additional deduction. Personally I think it was a way for the democrats to buy votes. Too bad for them it failed.
Anyway, I am filling out my 1040A, and I come to line 40 that tells me to see if I qualify for the Schedule M deduction. Also called the "Making Work Pay Credit". So as I am going over the form I learn that I do qualify for this deduction. Now here is the kicker. Before I take the Schedule M tax credit I owe approximately $1000.00.
Just so you have all the perimeters that might help, between my job and my wife's Social Security (She is a paraplegic as many of you already know) we brought in just over 41,000.00 last year. As I said I originally owed just under $1000.00, but after filling out the Schedule M paperwork I found myself getting a refund. Now I am not one to scoff at a return, especially after the way our savings has been whittled away by medical bills as of late. However, when I learned that I am now getting just under $15,000.00 back... Well quite frankly I figured I made a huge error in my calculations. After all, that amounts to more then a third of my annual income last year.
So I went back over the paperwork with a fine tooth comb, and again came up to just under $15,000.00 return. This just cannot be, so again I went over the paperwork. This time I turned off the radio, closed the door to my office and started with fresh forms that had no numbers to influence me. 30 minutes later I came to the exact same result. Instead of me owing uncle Sam $1000.00, I am entitled to a $15,000.00 refund thanks to the "Making Work Pay Credit".
Is there anyone else who has noticed such a drastic reduction in their tax obligation, or increase in there return by using Schedule M? See, while I qualify for the form, all that pertains to me on the form is line 1a, 3, 6, 7, and 8. Basically it is giving me another $15,725 credit against any taxes I owe.Can anyone shed light on this, because from what I understand anyone making who made less then $95,000.00 single or $190,000.00 married qualifies for Schedule M.
Finally, I do my own taxes every year. I have been for the last 35 years, and never ever have i been penalized for being wrong. fact is, last year was the first time I made an error, and the IRS sent me that check for $500.00 because they said I failed to take advantage of this very Schedule m which I am very, very confused by because of the amount of my return.
This may sound silly but...
On the lines where you multiply by a percentage, are you perhaps having a calculator issue, i.e., where you multiply by 6.2% you enter 6.2 and instead of .062 ?
Cute,
:>)
No, I have the wrong form,. It was printed out with the instruction sheet for schedule M, but it is not the schedule M worksheet I just realized. When I was asked a few questions about the form by a few Freepers, and realized my worksheet was different, then what was being offered to me as advice about.
What I was given was an earned income credit worksheet.
So now I need to hunt down the correct worksheet.,.
You mentioned that your wife is a paraplegic. I recently buried my husband who had Alzheimers. I do my own taxes and was really angry the past few years when I saw I could deduct for our being over 65, and could deduct if either of us was blind, but could not deduct for having to care for my husband 24/7/365. He would have been a lot easier to care for blind than with advanced Alzheimers. I suspect you could say the same about your wife’s situation. Perhaps we need to get on our representatives to change the word “blind” to “any condition that requires constant care in the home” as verified by a medical professional.
That earned income one is a complete joke - my neighbors were bragging about that last year. I was trying to figure out how a married couple with 4 kids living in a $300K house were making things work on a print shop employee's salary.
Turns out they get WIC, Food Stamps, and qualify for this "earned income tax credit" which gives them ALL of the money witheld for taxes back and an additional $8,000 that just comes out of thin air!
I always thought that "people of lesser means" got all their taxes withheld from their weekly checks back - but who knew the IRS now gives welfare payments as well!
Well she was bragging about the new mini-van they boutht with the $9,000 they "got back". Made my blood boil at the time.
Note: they are a good Christian couple with solid Conservative values and I don't blame them for taking what is offered, I'm just pissed that the IRS is acting as a welfare office.
I can't really figure out this "making work pay" credit BS, it probably falls under the same "IRS giving welfare" accusation, but what do you do when they print and send the check without any request? I asked an attorney, deposited the check, didn't tell my wife and promptly purchased a Kimber 1911.
I encourage you to do the same if it happens again!
good point. My wife and i were talking about that very same thing. My wife was wondering why her disabled situation is any different then a blind persons.
I have issues with "K" income statements coming in late every year so I always file an extension and deal with filings a couple of months later.
Good resource for people that can file in April. Like you said, when I have called the IRS or even gone there in person I have never been disappointed in their "customer service" skills.
Yeah that’s kind of confusing. That little worksheet just serves to tell you whether to fill out Schedule M or not. And it’s like five times the size of Schedule M itself. Somebody ping the Flat Tax guys, oh they’ll love this thread.
Now I know why I was going to get $15,000.00 back. Hell maybe I need to quit working and start collecting some free earned income.
Talk about an aximoron (sp?), free but earned? Huh?
I could never do it. I’ll be an old man crippled with arthritis, gout, and half blind before i am forced to retire at 100.
Besides, if I was around 24/7 my wife would probably shoot me for getting on her nerves all day. Even with her paraplegia she does more around the house then 90% of the welfare slugs in the country.
Ping for you to ping if you deem worthy.
Ping.
“Yeah that’s kind of confusing. That little worksheet just serves to tell you whether to fill out Schedule M or not. And it’s like five times the size of Schedule M itself. Somebody ping the Flat Tax guys, oh they’ll love this thread.”
I just clicked your link. It seems they have instructions for the Schedule M, but give the earned income credit worksheet which is wrong. Is this their current hand out or an old one? Suggest that everyone call IRS and point this out to them. If enough of us complain they may fix it.
You and me both! I really got pissed when I first learned that the IRS is giving out "refunds" for more than what a person paid in - what is that all about? there are plenty of other departments that do that.
I would chalk that up to 0'bama's desire to "re-distribute wealth" but its apparently been going on for well before the 0ne.
"Even with her paraplegia she does more around the house then 90% of the welfare slugs in the country."
God Bless you both and I don't doubt you at all!
TURBO TAX is good. It appears that your return is quite simple so 40 dollars will be well spent.
Yes, now you know my dilemma. Problem is, I cannot find the proper form anywhere on their site, and the post office did not have them. That is why I went online to print it, just to get the wrong form that screwed me all up to begin with.
I agree, get the phone bank working on these guys and get them to fix their web site. Make you wonder how many billions of $s has the IRS spen of our tax money just to get it wrong.
That is what happens when you hire acorn.
God Bless you to my FRiend.
This country is in need of a good Revolution.
Only problem is I am getting too damn old to enjoy it if we do ever have one.
I guess I’ll have to settle for the quiet revolution at the ballot box.
I just Googled “Schedule M worksheet” and the top link was the same mistaken one we have all seen. Then I check the next 3, and the 4th one down gave a phone number from last year in July for help with the Schedule M. I will call tomorrow if it is still good. The number is 1-800-908-4184. Let’s all call and give them an earful if possible.
I hear you, and for the sake of my young kid's future, I pray our problems get resolved soon!
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