I just finished my taxes for 2008 and had a refund coming of $870.00, then they asked me if I received a stimulus payment last year and the IRS would of sent me a form which they didn't send me because they applied it to tax payments I make. They figured mine was $730.00 and deducted it from my refund. Is this correct? If it is what are they giving me....nothing!

Let me see if I am following you. Last year you received a stimulus payment of $730 and it was paid to you be being applied against your 2007 tax bill. And now for tax year 2008 they ask if you received a stimulus rebate last year, your answer should be "yes" and so you don't get a second stimulus payment. Right? That's exactly the way it works - you are entitled to one stimulus payment, either as a "rebate" on your 2007 taxes or your 2008 taxes, but not both. I don't understand why your 2008 refund of $870 is being reduced, unless in your filing fr 2008 you incorrectly claimed that you didn't receive that stimulus payment for tax year 2007. Is that what happened?