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Question about the Tax Rebate that is coming to Taxpayers


spaceace12

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I didn't get a rebate the last time because I didn't make enough money. If you remember this, the Gov't sent tax payers who made enough a check, iirc, up to 300 dollars. My question is, did this count agianst your tax return for next year and take money away from it? The reason I ask is that the gov't is doing this again. This time, 600 dollars for single filings, and 1200 for double incomes. Plus 300 credit for each kid, if I read the article correctly. Thank you for you help in advance, I realize only a few of you will be able to answer the question.

 

WASHINGTON - Congressional leaders announced a deal with the White House Thursday on an economic stimulus package that would give most tax filers refunds of $600 to $1,200, and more if they have children.

 

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House Speaker Nancy Pelosi said Congress would act on the agreement — hammered out in a week of intense negotiations and uncustomary bipartisanship — "at the earliest date, so that those rebate checks can be in the mail."

 

President Bush praised the agreement at the White House, saying it "has the right set of policies and is the right size."

 

The rebates, which would go to about 116 million families, had appeal for both Democrats and Republicans. Pelosi's staff noted that they would include $28 billion in checks to 35 million working families who wouldn't have been helped by Bush's original proposal. Republicans, for their part, were pleased that the bulk of the rebates — more than 70 percent, according to an analysis by Congress' Joint Tax Committee — would go to individuals who pay taxes.

 

Individuals who pay income taxes would get up to $600, working couples $1,200 and those with children an additional $300 per child under the agreement. Workers who make at least $3,000 but don't pay taxes would get $300 rebates.

 

The first rebate payments could begin going out in May, and most people could have them by July, said Treasury Secretary Henry Paulson, noting that the IRS will already be overwhelmed processing 2007 tax returns. The rebates were expected to cost about $100 billion, and the package also includes close to $50 billion in business tax cuts.

 

The principal players in pulling the deal together were Pelosi, House Republican leader John Boehner and Paulson. The package would allow businesses to immediately write off 50 percent of purchases of plants and other capital equipment and permit small businesses to write off additional purchases of equipment. A GOP-written provision to allow businesses suffering losses now to reclaim taxes previously paid was dropped.

 

Pelosi, D-Calif., agreed to drop increases in food stamp and unemployment benefits during a Wednesday meeting in exchange for gaining the rebates of at least $300 for almost everyone earning a paycheck, including those who make too little to pay income taxes.

 

"I can't say that I'm totally pleased with the package, but I do know that it will help stimulate the economy. But if it does not, then there will be more to come," Pelosi said.

 

Boehner said the agreement "was not easy for the two of us and our respective caucuses."

 

"You know, many Americans believe that Washington is broken," the Ohio Republican said. "But I think this agreement and I hope that this agreement will show the American people that we can fix it and will serve to move along other bipartisan agreements that we can have in the future."

 

Paulson said he would work with the House and Senate to enact the package as soon as possible, because "speed is of the essence." But he also cautioned that "the work is far from over."

 

The Treasury Department has already been talking to the IRS about getting the checks out "as quickly as possible, recognizing that the tax filing season is ongoing," said Treasury spokesman Andrew DeSouza.

 

The rebates would phase out gradually for individuals whose income exceeds $75,000 and couples with incomes above $150,000, aides said. Individuals with incomes up to $87,000 and couples up to $174,000 would get partial rebates. The caps are higher for those with children.

 

The agreement left some lawmakers in both parties with a bitter taste, and they complained that their leaders had sacrificed too much in the interest of striking a deal. Many senior Democrats were particularly upset that the package omitted the unemployment extension.

 

"I do not understand, and cannot accept, the resistance of President Bush and Republican leaders to including an extension of unemployment benefits for those who are without work through no fault of their own," Rep. Charles B. Rangel, D-N.Y., the Ways and Means Committee chairman, said in a statement.

 

Sen. Max Baucus, D-Mont., the Finance Committee Chairman, said leaving out the unemployment extension was "a mistake," as he announced plans to craft a separate stimulus package in the Senate starting next week.

 

Majority Leader Harry Reid said the goal is to send the package to the White House by Feb. 15 for Bush's signature, but he noted the Senate would likely try to add more spending to the package.

 

"I expect that the (Finance) Committee and other senators will work to improve the House package by adding funds for other initiatives that can boost the economy immediately, such as unemployment benefits, nutrition assistance, state relief and infrastructure investment," Reid said in a statement.

 

Asked about this, Paulson praised Reid's leadership but said, "I don't know what he has in mind."

 

Bush has supported larger rebates of $800-$1,600, but his plan would have left out 30 million working households who earn paychecks but don't make enough to pay income tax, according to calculations by the Urban Institute-Brookings Institution Tax Policy Center. An additional 19 million households would receive only partial rebates under Bush's initial proposal.

 

To address the mortgage crisis, the package raises the limit on Federal Housing Administration loans from $362,000 to as high as $729,750 in expensive areas, allowing more subprime mortgage holders to refinance into federally insured loans. To widen the availability of mortgages across the country, it also provides a one-year boost to the cap on loans that Fannie Mae and Freddie Mac can buy, from $417,000 up to $729,750 in high-cost markets.

 

^^

Article from a news site.

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This tax rebate has nothing to do with your tax refund. If you qualify, you will get the rebate regardless of what your tax refund is.

 

I believe you would of had to of filed your taxes last year (for the 2006 tax year) to receive the rebate. Hope this helps.

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From what I have been told, this isn't going to be a advance, this will truely be a rebate that won't affect your taxes next year (as in they won't take it out of you taxes. Say you were to get 1800 back, but they took out that 600 so you only got 1200.) . But don't take that for 100% truth until this passes through. I haven't copletely decided on what I will do with mine, granted I get one (don't know why I won't, I made over 20k last year). Either a hdtv or money for my ppp trip.

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I am in total SHOCK that they actually did something, and quickly to, both sides made comprimises, I'm pretty impressed

 

Will it make a diffrence, who knows, I just know I'll be able to get my new HDTV finally

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I am in total SHOCK that they actually did something, and quickly to, both sides made comprimises, I'm pretty impressed

 

Will it make a diffrence, who knows, I just know I'll be able to get my new HDTV finally

 

I was going the HDTV route, but changed my mind. Slingbox and money for PPP instead.

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The problem with something like this is that is that it lowers the value of the US dollar even more. You can't just print money and give it away ... the government has to actually get up off it's backside and fix the economy, rather than just pay everyone off to look the other way.

 

Sigh..

 

Cameron.

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The problem with something like this is that is that it lowers the value of the US dollar even more. You can't just print money and give it away ... the government has to actually get up off it's backside and fix the economy, rather than just pay everyone off to look the other way.

 

Sigh..

 

Cameron.

 

Well it is technically a tax rebate, so they are just giving you back the money you gave them already them, and they are not producing it out of thin air, in theory

 

I guess they are using history as a guide, the last time this happened, right after GW took office, it did stimulate the economy

 

we will have to wait and see if it works, I do hope it does, I'm not really in the mood for a recession, I would like to buy a new house in the next few years

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The problem with this is, the people that don't need it will just put it away, not helping at all. The people that do need it will put it toward bills, mortgages, etc.

 

Wait, what am I saying. We're dumb Americans, why pay the mortgage or bills when you can get a new HDTV?

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The problem with this is that we are already at a budget deficit and this will only make it worse so our national debt is only going to grow. The only reason why this went through is this is an election year and the incumbents are thinking it will help them get reelected by throwing money at their constituents.

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The problem with this is, the people that don't need it will just put it away, not helping at all. The people that do need it will put it toward bills, mortgages, etc.

 

Wait, what am I saying. We're dumb Americans, why pay the mortgage or bills when you can get a new HDTV?

 

I must be the dumb american you are talking about, considering my post on the front page says I'm buying an HDTV

 

thanks

 

BTW, I have a budget, and my mortage is paid, and I have no car payments, and have very little debt, yes I am dumb

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I must be the dumb american you are talking about, considering my post on the front page says I'm buying an HDTV

 

thanks

 

BTW, I have a budget, and my mortage is paid, and I have no car payments, and have very little debt, yes I am dumb

 

Don't think that comment was directed at you. He was just mentioning how many Americans spend like drunken sailors. It's true.

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Definitely NOT directed at you, Crispy. It was a generalization. Obviously, you (and myself included) pay are bills, mortgage. We've budgeted so that this rebate really is kind of pointless.

 

I don't think the GOV'T ( ) should be bailing people out of their own financial problems. Can't budget correctly, too bad, so sad.

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I must be the dumb american you are talking about, considering my post on the front page says I'm buying an HDTV

 

thanks

 

BTW, I have a budget, and my mortage is paid, and I have no car payments, and have very little debt, yes I am dumb

 

If you have very little debt than you are not the typical dumb American!

 

Gov't and giraffes rule!

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Fearless predictions:

 

A) The Gov't. ( ) has struck a secret deal with Walmart and will receive a cut of each HDTV sold.

 

B) Right before you receive your check, it will be announced that gas will be $5.00/gallon over the summer months.

 

C) Marriage counselors and lawyers will collect the money that was responsible for starting the arguments on how it would be spent in the first place.

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If you have very little debt than you are not the typical dumb American!

 

Credit can be fun. I put my car loan balance onto one of those 1 year intro 0% APR credit cards like 3-4 years ago. I kept transferring the balance every year to another 0% card and took my sweet time paying off the balance. Free money rules!

 

Of course I think the days of running this scam are numbered thanks to Citigroup and its ilk.

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  • 2 weeks later...

After talking to the person who did my taxes, getting back 1900 (yeah), there is a couple possiblities that congress is trying to figure out.

 

A. A check will be sent and will be taken off your refund next year.

 

B. or the Gov't will consider it income and take taxes out (go figure)

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