Rebate Checks Question?

[HandSanitizer]

Thanks for clearing that up for me guys. The way it was explained to me is more like loan.

 

[cmoneyr]

I "just" qualify for it. And to celebrate, I will immediately take it, and apply it to the principal on my house.

Screw the "stimulus". Does that make me Un-American?

Yes, now go buy a 79" TV, hurry!!

 

[06_CY]

From CNN.com:

"The checks are an advance on next year's refunds, and most, if not all of the money, will be deducted from taxpayers' refunds in 12 months' time."

 

[CycloneErik]

So, if a person has to pay at the end of the year, then this will not be a real great thing for next year. Am I reading this correctly? (If something is deducted from a refund that isn't a refund, then that person has to pay more?)


Arrrgh!

 

[cycloneworld]

From CNN.com:

"The checks are an advance on next year's refunds, and most, if not all of the money, will be deducted from taxpayers' refunds in 12 months' time."

If this is true, I call BS. And Congress is trying to get away with another scam.

 

[cmoneyr]

So if you end up having to pay next year, you'll have to pay an extra $600/1200? Awesome!

 

[jtdoyle1]

From CNN.com:

"The checks are an advance on next year's refunds, and most, if not all of the money, will be deducted from taxpayers' refunds in 12 months' time."

Do you have a Link?

I don't think that is how it works. I think you just have to pay tax on that money next year. If that is the case than just keep the money.

 

[brianhos]

From CNN.com:

"The checks are an advance on next year's refunds, and most, if not all of the money, will be deducted from taxpayers' refunds in 12 months' time."

YAY!!! That is the best news I have heard all day!

So will this be backed up with a tax cut? My guess is no, so it is really going to **** Joe 6 pack off next year when he has to PAY the government.

 

[CycloneErik]

So if you end up having to pay next year, you'll have to pay an extra $600/1200? Awesome!

I think my old drill sergeant would have said, "That is just plain outstanding!"

He might have been sarcastic at that point.

 

[brianhos]

Wow, there is a lot of mis information out there about these checks. Half of the articles I read call it a rebate, half of them don't.

And WHY is there an income cap? What is the purpose of that? Or is it just more penalizing of the people that went to college and got good jobs?

 

[jumbopackage]

Wow, there is a lot of mis information out there about these checks. Half of the articles I read call it a rebate, half of them don't.

And WHY is there an income cap? What is the purpose of that? Or is it just more penalizing of the people that went to college and got good jobs?

Obviously only poor people can spend money. Rich people cannot contribute to the economy and always have all the money they need already.

 

[jumbopackage]

The rebates are tied to a reduction of the 10% bracket from 10% to zero for the first $6,000 of taxable income in 2008, Luscombe said. "I guess they need some legal basis to give a rebate check so that's what they came up with," he said. "That would be tied to the 2008 return. That's similar to (the 2001 tax rebate), so basically you would reflect the rebate check as sort of a prepayment on your 2008 return."
The rebate is not taxable at the federal level, and it's unlikely the states would tax it, though that's not entirely clear at this point

From What the stimulus package means for you - MarketWatch

So what that means, as I understand it, is that it's basically a tax reduction for next year, that you're getting now. So don't be happy Brian, since it's essentially lost tax revenue. It's basically just 600 (or 1200 or whatever) that you won't be paying in taxes next year. Your rebate is how much more you payed than you should have for the year before, so it probably won't mean much in terms of that.

 

[HandSanitizer]

So here is what I am confused about. So I have 3 kids that I claimed for last 2007 tax season. So would that would mean that I get 600+600+300+300+300=$2100.
This "Cash Advance" or whatever it is..Is it just money they are going to take off of your 2008 Tax Refund? So if a person usually gets $5000 for tax returns would they then get $5000-$2100 (advance)? That is the way someone tried to explain it to me, but it sounds like the bill has changed a bunch of times.

So was my post about my guy telling me about this correct?
I am really confused...

 

[isucyfan]

So was my post about my guy telling me about this correct?
I am really confused...

This is looking to be true. The last time we got "rebates" I remember doing my taxes the next year, and when I plugged in the "rebate" as income, it subtracted my refund dollar for dollar. Basically you will be getting no additional money for this stimulus package. It's all smoke and mirrors if you ask me.

 

[redrocker]

Obviously only poor people can spend money. Rich people cannot contribute to the economy and always have all the money they need already.

Give it to me, I will show you how to spend it!:yes:

 

[06_CY]

Do you have a Link?

I don't think that is how it works. I think you just have to pay tax on that money next year. If that is the case than just keep the money.

Go to CNN.com and it was on their front page.

 

[jtdoyle1]

From CNN.com:

"The checks are an advance on next year's refunds, and most, if not all of the money, will be deducted from taxpayers' refunds in 12 months' time."

From CNN: (Basically what you were saying)
Do I have to pay the rebate back?
No. And here's why.
Your rebate is a one-time tax cut - an advance on a credit you'll receive on your 2008 return.
It's based on your 2007 income initially. If it turns out that your 2008 income and number of children would have qualified you for a larger rebate than the one you received, you'll be sent the difference. If it turns out your 2008 income was lower than in 2007 and you should have gotten a lower rebate, you get to keep the difference.
"If you were supposed to receive a larger payment than you did, you will get the extra money," said Treasury spokesman Andrew DeSouza. "If you received more than what you should have gotten, you will not be penalized."

Rebates: What you need to know - Feb. 8, 2008

 

[brianhos]

From CNN: (Basically what you were saying)
Do I have to pay the rebate back?
No. And here's why.
Your rebate is a one-time tax cut - an advance on a credit you'll receive on your 2008 return.
It's based on your 2007 income initially. If it turns out that your 2008 income and number of children would have qualified you for a larger rebate than the one you received, you'll be sent the difference. If it turns out your 2008 income was lower than in 2007 and you should have gotten a lower rebate, you get to keep the difference.
"If you were supposed to receive a larger payment than you did, you will get the extra money," said Treasury spokesman Andrew DeSouza. "If you received more than what you should have gotten, you will not be penalized."

Rebates: What you need to know - Feb. 8, 2008

So basically if it is a 1 time tax cut this year, everyone is getting it. So why not pre-rebate everyone and not just those under $75K?

 

[CyPlainsDrifter]

Wow, there is a lot of mis information out there about these checks. Half of the articles I read call it a rebate, half of them don't.

And WHY is there an income cap? What is the purpose of that? Or is it just more penalizing of the people that went to college and got good jobs?

The whole tax system is based on punishing those who do well in life......

 

[wheels686]

I am so confused now on this whole thing