Stimulus Rebate-Taxable This Year?

NO! It isn't taxable on the 2008 Federal or Kansas returns (I don't know about all the states.) So if you are told that it has to be added back to your 1040, please find another preparer. 

However! A good preparer will check with you to see how much stimulus rebate you qualified for last year. The rebate was an advance on 2008 credit. But 2007 returns were used to estimate how much rebate a taxpayer qualified. It could be that you qualified for more this year. If you had a child or your income changed in 2008, you might be entitled to a Recovery Rebate Credit this year. For example, the full stimulus rebate a married couple with one child could receive was $1500. A child born in 2008 qualifies the couple for an extra $300.

The key is the amount the taxpayer was qualified to receive, not they actually received. Many of the rebates was taken for back taxes, child support or other debt. If you have a question about what you qualified for last year, you can use the lookup page the IRS has developed.

Also, if you didn't file your 2007 before October 16th, you can still get your rebate by filing your 2008 return.