Today TaxMama hears from Susan in Montana, with this problem.
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“The government issued us a stimulus check. But we never really got any money because the IRS used it to pay back taxes. Now, when I enter it on my tax return, it increases the amount I owe. Should I really be entering an amount I technically did not receive?”
Dear Susan,
How odd. Wherever did you get the idea that you didn’t receive the money?
You were entitled to a stimulus check.
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You received the money. But, instead of getting
deposited to your bank account, it went to make a payment against a debt you owe.
Isn’t the balance on the debt lower by the amount of the stimulus check? Of course it is.
Just because you didn’t physically receive the check in your hand doesn’t mean you didn’t get the use of the money, does it?
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Sorry, you need to enter the amount of the check – even if IRS did use it on your behalf.
And remember, you can find answers to all kinds of questions about tax debt and other tax issues, free.
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Where? Where else? At TaxMama.com
- Ask TaxMama :: Where taxes are fun and answers are free
- www.TaxQuips.com :: The number ONE free tax podcast online
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