So is this rebate like the one a few years ago? That one was really just an advance against the next years taxes.

In other words, say I get a $1200 rebate.. is that money straight to me without any consequences to my 2008 taxes?

or (as I suspect)-- If I'm due a $1500 return next year (2008 taxes), I'll only get $300 back because the government already gave me the $1200.

I can't seem to get a straight answer to this.

If you have a source for your answer, please state it.

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“No persons are more frequently wrong, than those who will not admit they are wrong.” -- François de La Rochefoucauld

"Those who cannot accept the past are condemned to revise it." -- Geo. Mathias

The German word for contraceptive is “Schwangerschaftsverhütungsmittel”. By the time you finished saying that, it’s too late

From: [www.consumerismcommentary.com]

In April 2009 or thereabouts, when you file your taxes for 2008, the IRS will run the calculation for the stimulus rebate again. If the results show that you would have received more (due to an additional child, for instance), you will be sent the difference (or owe less on your final tax bill). If your results show that you would have received a smaller rebate, then you get to keep the difference.

To summarize, the rebate that will be sent out in May 2008 is a credit to the taxes you’ll owe on 2008 income, but it is a new credit, so you don’t have to “pay it back.”

Can't comment on the veracity of the source.

now, remember, don't pay down your debt with it, make new debt or risk your patriotism.

this won't last long, huh?

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!#$@@$#!

proofraed by OwEn the c@t.

New credit? Why confuse things? Is it just a wad of cash that I will get without having to pay taxes on it and will not show up on my 08 returns anywhere?

To put it all together in the terms of your question...

Quote
Ombligo
If I'm due a $1500 return next year (2008 taxes), I'll only get $300 back because the government already gave me the $1200.

Bingo.

[articles.moneycentral.msn.com]

But, if you are due a $900 return next year, but the gov't already gave you $1200 this year, you do not have to pay it back. That's $300 that would be actually "free money."

The IRS will likely calculate this stimulus rebate due so that the "free money" will be minimized, of course. In most cases, you'll only see "free money" if your 2008 income turns out to be lower than your 2007.

Quote from above source: Remember, this is your money you're getting back, and the rebate checks are basically an advance on the credit you'd otherwise get in 2009.

If it turns out that you're entitled to a bigger tax credit than the checks you receive, you'll be able to claim that when you file your return next year. If you got too much, you won't have to pay back the excess



Edited 2 time(s). Last edit at 02/14/2008 09:07AM by Acer.

Quote
TLB
From: [www.consumerismcommentary.com]

In April 2009 or thereabouts, when you file your taxes for 2008, the IRS will run the calculation for the stimulus rebate again. If the results show that you would have received more (due to an additional child, for instance), you will be sent the difference (or owe less on your final tax bill). If your results show that you would have received a smaller rebate, then you get to keep the difference.

To summarize, the rebate that will be sent out in May 2008 is a credit to the taxes you’ll owe on 2008 income, but it is a new credit, so you don’t have to “pay it back.”

Can't comment on the veracity of the source.

The confusion on this needs to be cleared up. From MSNBC:

"What the IRS is doing is cutting your tax bill. For example, if you owed $1,000 in taxes on the income you earned in 2007, now you owe $700. If you had exactly the right amount withheld, you’ll get a rebate check for the exact amount you’re entitled to. If had too much tax withheld, you’ll get a rebate plus a refund of any extra tax withheld during the year.

If you didn’t have enough withheld from your paycheck to cover your new, lower tax bill, you’ll still owe taxes. So instead of mailing you the check and having you mail it back, the IRS will just hold onto it and apply it to your bill. But when you pay what you owe, you’ll write a smaller check than you would have without the rebate."

This makes it sound like it applies to the taxes on your 200*7* income, not next year's taxes on your 2008 income. With it being called a "rebate" the former makes more sense than the latter, to me.



Edited 1 time(s). Last edit at 02/14/2008 09:19AM by Blankity Blank.

I believe MSNBC is referring to the original bill. The bill that has been approved by Congress is in a somewhat modified form. The tax “rebate” is now an advance on a new credit scheduled for 2008 rather than a rebate or refund for the 2007 tax bill. My understanding is that the 2008 rate will be adjusted with a one time credit--in effect reducing the tax rate for one year. This is different than the last round of tax rebates.