The check came right on schedule. Visions of flat screen TVs, video games and a day at the spa came with it. But I dutifully headed to Cub Foods and turned $1200 into two $660 gift cards — the maximum amount the company allows. It’s a strategy I explained in this earlier post.

Like many Americans, the other $600 from our check will go towards paying off a credit card balance. June was an expensive month, with some eating out, some reunion expenses and the purchase of a new patio set. Hence, the tracking spending exercise I started mid-June.

I must admit that exercise has fallen by the wayside of late. I did do a quick and dirty assessment, though, and our credit card transactions showed we’re spending about $15 more in gas than we budgeted and that we ate our entire fun budget for the month.

I received an e-mail today from Turbo Tax that essentially said the early bird doesn’t get the worm– he gets to revise his tax return.

Dear Valued Customer,

At TurboTax we are committed to helping you receive every deduction and credit to which you are entitled.

We are sending you this notice because at the time you prepared your Minnesota State return, your TurboTax product may not have included functionality designed to help you maximize your K-12 education deductions and credits.

If you did not incur education expenses for your children in tax year 2007, please disregard this notice. This ONLY affects you if you:

1)	Had children who attended Kindergarten through High School (grades K-12) and lived with you more than six months during 2007 AND
2)	Paid education expenses for these children in 2007 AND
3)	Did not receive a credit (Form M1, line 30) or a deduction (Form M1, line 7) on your 2007 Minnesota state return.

To find out if you already received a credit or deduction, print and/or review Form M1 of your 2007 Minnesota state return. If there is an amount on line 7 or line 30, you received your education tax deduction and/or credit and you can disregard this notice.

However, if you think you may qualify for an education credit and/or education deductions you did not receive, TurboTax can help you get the deductions and credits to which you are entitled.

Get started with step-by-step instructions to amend your return.

Sincerely,

Bob Meighan

Vice President, TurboTax

P.S. TurboTax Online for Tax Year 2007 is ONLY available until October 15, 2008. You must file your TurboTax Online amended return on or before this date. To learn more about this deduction and credit, click here. If you do not find the answers you are looking for, or if you still have questions, call 888-777-4160.

The e-filing numbers are in, folks. And despite Congress’ desire for us to reach 80 percent of taxpayers using e-file, we’re falling short of that goal. Originally, Congress set 2008 as the year to reach 80 percent. But for tax year 2007, just 62 percent of taxpayers filed electronically, up from 57 percent for tax year 2006.

In Minnesota, we’re above average, with 74 percent of filers e-fling for tax year 2007 compared with 71 percent in tax year 2006.

However, both of those 2006 numbers looked higher at this time last year and were eventually revised downward. So we may not be as hip to e-filing as it initially appears. (more…)

After my last post on stimulus checks, I e-mailed Carrie Resch at the IRS, who kindly pulled out the following answers that she hopes will satisfy those of you who thought you would see your stimulus rebate right now. Turns out the check’ll be in the mail in many cases.

Turbo Tax also has its own stimulus FAQs.

And the IRS now has a Where’s my Stimulus Calculator although it states that specific information about payments isn’t available until the week before the payment goes out. But I guess it’s better than nothing.

Here are the responses from Spokeswoman Carrie Resch at the IRS:
Q. I chose direct debit to pay my tax bill. Will my stimulus payment be
direct deposited to the same account?

A. No, the account information used for an incoming direct debit payment
to the IRS cannot be used as the account information for the direct
deposit of the stimulus payment. People who choose direct debit to pay a
balance due will receive their stimulus payments by paper check through
the mail. [Updated 3/3/08]

Q. I plan to choose direct debit to pay my tax bill. I know my economic
stimulus payment will not automatically be direct deposited based upon
the direct debit information I’ve provided to pay my tax bill, but can I
also enter direct deposit information to receive my stimulus payment by
direct deposit?

A. Some tax preparation software will allow this, some will not. You
will have to make this determination based on your own review of the tax
preparation software you use. If the tax software allows you to enter
both direct debit (electronic funds withdrawal), as well as direct
deposit information, doing so will allow your economic stimulus payment
to be direct deposited. [New 3/20/08]

You didn’t expect this hastily approved stimulus rebate deal to go off without a single hitch, did you?

And now the stories are coming in about rebates being sent via mail instead of direct deposit, rebates being deposited into IRA accounts designed for retirement, and rebates ending up in the wrong taxpayer’s bank account.

Anyone have such a story to share?

The IRS has a list of frequently asked questions about the rebate. And they’ve made an exception for taxpayers who had directed their tax rebate into an IRA and either don’t want their stimulus to go towards retirement or can’t have their stimulus payment applied to the IRA because it would bump them over the maximum IRA limit. Read more here.

I’m still expecting mine to come in July. And in a way, it’s a good thing to have to wait because it gives me time to mull over all of my options– from the flat screen to the plane tickets to a GPS for the car. Maybe by the time the check’s in my hot little hands, the urge to splurge will be long gone and I’ll stick it in my just in case account or new car account where it belongs.