Extra Stimulus Rebate After Filing an Amended Return? IRS Says No

Friday September 12, 2008

Filing an amended return is a relatively common situation. Taxpayers can file an amendment to make corrections about their income, deductions, tax credits, or dependents and other items that impact how their tax is figured. But this year, filing an amended return creates a twist when it comes to the economic stimulus rebate.

This issue was recently brought to my attention by a reader posting in the tax forum, who said that the IRS was not going to recalculate their stimulus rebate after they filed an amended return. That didn't make a whole lot of sense to the taxpayer or to me. As it turns out, the IRS has posted a FAQ about stimulus rebates and amended returns. On that FAQ page, the IRS clearly states that they won't be sending out new stimulus rebates based on amended returns. Instead, taxpayers will have to wait until 2009 to claim any excess stimulus rebate as an additional tax credit on their 2008 tax returns. This refundable tax credit is being called the Recovery Rebate Credit, and will be a one-time tax credit for 2008 only, based the stimulus rebate a taxpayer was supposed to receive, minus any rebates the taxpayer actually received. My hunch is that the IRS is using this provision in the tax law for claiming tax credits as a way to prevent the administrative burden of recalculating rebates on all the amended returns the IRS' receives.

Bottom line: if you filed an amended return, you'll have to claim any additional stimulus rebate on your 2008 return. The IRS won't send out revised stimulus checks in the meantime.

More information: