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.
Not a chance.
It's easy to think so but having worked for the federal government I can guarantee that gov't workers only claim that they meant to do their goofy antics on purpose. Reality is they sometimes screw up like normal human beings elsewhere but the difference is that 'elsewhere' can go out of business.
GOOD NEWS. I called the number 1-800-908-4184. After waiting through a long introduction I hit the number (1) for talking with a human. After waiting 15 minutes I spoke with Ms. Shelton #1000144926, who was very helpful. First she Googled Schedule M Worksheet, she found that indeed the Schedule M description had for page 2 the worksheet to Earned Income, not Making Work Pay. She went off to talk with someone for a few minutes and came back and read me what she was sending to the people who maintain the computer sites. It even included my comment that one confused tax payer thought he was owed $15,000 Her write-up sounded OK, the only addition I made was that a lot of people were really angry and might call the above phone number to be sure that the computer people really take notice. So, YOU ALL*** HAVE YOUR MARCHING ORDERS. ;-)
“... Somebody ping the Flat Tax guys, oh they’ll love this thread.”
Thanks, JJ.
I decided last year I'm out of this game - I quit work in 4 months and go SS and start searching for all the oldster bennies I can find. I could work at least 4 years more but why bother with 120 mile commutes, losing most of what I make for very little professional satisfaction
I lose a little over 60% of my pay (which is good - I pay at least ten-fifteen fold in taxes than I ever got my last year of being in the military). In the end, I stand at the checkout line at WalMart and see fatass lazy kid-laden leeches checking out with brim-full carts and paying nothing after swiping their EBT cards. - I, meanwhile, am relegated to paying cash.
I'm gonna start gettin' instead of givin' from then on.
I hear ya. I get tired of watcjing those we pay to sit on their ass get things I would never dream of wasting what money i have left on.
I did get my problem fixed. I owe $584.00 instead of the original $1000.00 I thought I owed and a lot less then the $15,000.00 I erred in think i might get.
Take care.
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