Courtesy of David and Mary Mellem, EAs
IRS has released the draft of the new Schedule M (Form 1040). This schedule is planned to be part of the 2009 income tax return to reconcile the $400 stimulus payments.
Basically Schedule M calculates the amount of credit taxpayers are entitled to as a result of the stimulus provisions and takes into account all of the issues such as being 6.2% of the taxpayer’s earned income, but not more than $400 ($800 for MFJ); phased out for taxpayers with income over $75,000 ($150,000 for MFJ); reduced by the $250 received by the taxpayers who collect SS benefits, SSI, etc.; etc.
Since this is a draft form don’t be surprised if it is revised (or possibly made into a worksheet instead) before it becomes final.
A copy of the new Schedule M can be found in the Draft Forms section of the IRS web site and in the Resource Center below (see link below).
This text has been shared with you courtesy of: David & Mary Mellem, EAs & Ashwaubenon Tax Professionals, 920-496-1065 (920-496-9111). davidmellem@yahoo.com, davidmellemea@yahoo.com, marymellem@yahoo.com, marymellemea@yahoo.com.
©2009 Ashwaubenon Tax Professionals. No reproduction of this article is permitted without the express written consent of Ashwaubenon Tax Professionals, 2140 Holmgren Way, Suite 1040, Green Bay, WI 54304.
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- IRS Draft Forms :: Proposed Schedule M – to reconcile stimulus payments
