IRS Irony

diamondfish · 02-13-2008, 05:33 AM

I had to chuckle the other day when my wife got a notice from the IRS for her kicker check. I told her it was reportable income and she was going to have to file it.

Then is where her confusion started. "They give me a kicker check, and then want part of it back?" she stated. I calmly grinned and told her the IRS, is the IRS and when you put the two words together it spells THEIRS.

I told her the moral of the story was the IRS giveth and the IRS taketh away.

Just_learning · 02-13-2008, 05:42 AM

The kicker came from state funds not the IRS, at least the way I understand it. I went ahead and filed my taxes without receiving it. If they really want to throw up a fuss they can call me.

Silver Hilton · 02-13-2008, 06:15 AM

The kicker is a return of state taxes, which you deducted against your federal taxes. Since you got it back, your income for federal purposes goes up, and that means you owe more to the feds.

diamondfish · 02-13-2008, 06:18 AM

So it really is THEIRS..........

Silver Hilton · 02-13-2008, 06:25 AM

And since they are us, it's yours.

Hogmaster · 02-13-2008, 06:53 AM

Does that make it MINE?

latesvak · 02-13-2008, 07:39 AM

so who gets it then ?

luke

Silver Hilton · 02-13-2008, 08:03 AM

Quote:

Originally Posted by Hogmaster

Does that make it MINE?

Sure, 1 300,000,000th of it. Less the deficit, of course.

ryleysmom · 02-13-2008, 08:05 AM

Quote:

Originally Posted by Just_learning

The kicker came from state funds not the IRS, at least the way I understand it. I went ahead and filed my taxes without receiving it. If they really want to throw up a fuss they can call me.

1pump · 02-13-2008, 08:05 AM

Quote:

I went ahead and filed my taxes without receiving it.

Me, too. I didn't know it was coming, and I filed my return two days before the 1099 showed up in the mail. Too bad, so sad.
If the IRS wants to adjust my 2007 income for the kicker, they can go right ahead. They have my return and my refund held hostage.

Etonfish · 02-13-2008, 08:15 AM

Quote:

Originally Posted by Silver Hilton

The kicker is a return of state taxes, which you deducted against your federal taxes. Since you got it back, your income for federal purposes goes up, and that means you owe more to the feds.

This is correct. If you did not itemize but instead claimed the standard deduction, you do not need to report the kicker as income. The kicker is treated the same way as your Oregon refund.