Question about the Tax Rebate that is coming to Taxpayers

[slither37]

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

 

Not too shocking to me after I remembered it was an election year. They are tripping over themselves to do this. They get to give away money in an election year, a politician's dream.

[spaceace12]

I wonder what kind of check it will be, one where it will take off next years refund or will they take taxes out of it and count it as income. Those were the two plans, but I don't know what passed.

[ernierocker]

It makes no sense to give us money this year, then turn around and take it off our refund next year. That isn't truly a tax rebate. Thats more like a tax refund loan with no interest. CNN ran a story earlier today which stated that this was the case. When I was forwarding it to a co-worker, CNN had already updated the story and that info was missing. Maybe they jumped the gun or reported incorrect info, who knows. If those are the only two choices, I'd prefer to have it taxed and be a true rebate.

[spaceace12]

ME too, but I bet it will be taken out of the refund next year. But if you don't file and make some money, you might end up getting 300 dollars. That includes if you are on social security.

 

EDIT: Just called where I had my taxes done, supposedly, that is not the case. Will find out for sure next Feb. though.

 

EDIT: Just found this, apparently, we will not have to pay it back.

 

http://money.cnn.com/2008/02/08/pf/taxes/rebates_what_you_need_to_know/index.htm?cnn=yes

[nathanhillinbl]

...why do i have to be a dependent?! I make over $3000 easily, even on theme park pay, it would be nice to see a refund check.

[terrancew_hod]

^Well unless you're claiming emancipation from your parents (which then they can't claim you on their taxes), you're still dependent on them for your basic needs. Just look at that extra money going to your parents as making sure there is a roof over your head and food on the table.

 

Any money the government sends us, we will spend...wisely.

 

Or invest in the future. Or save up for taxes to be paid later. Or whatever.

Eric

 

Or spent on a European coaster vacation. I figure the gov't should help build up my dollar overseas since it is only worth about 60 cents to a Euro. A mess.

 

Terrance

[ginzo]

Or spent on a European coaster vacation. I figure the gov't should help build up my dollar overseas since it is only worth about 60 cents to a Euro. A mess.

 

Terrance

 

Yeah, we better throw some Ramen into our suitcases because the prices are not going to be pretty.

[ebl]

I think we'll be getting $1500---$1200 for our income level, plus $300 for having one child. That is, if I understand the rebate schedule correctly.

 

Good. Now I can put a little away.

 

Eric

[Erik Johnson]

Well all of my money will be going right back to the government to pay my tax bill this year. Oh well.

[ebl]

^ Isn't it nice of the government to give you money to pay your taxes? Sort of like those charitable organizations where you win money in a drawing or raffle and they "suggest" that you can donate it back to them.

 

Eric

[willski]

With all of the extra dough I'm getting from W-2's, leftover scholarship, and now this economic stimulus check. I may just get a laptop. I feel like an outcast NOT having one at college!

 

 

How are you getting a check? You shouldn't have paid any taxes out of your paycheck, just social security and medicare withdrawls.

 

 

Full time student=tax exempt (up to a certain extent).

[spaceace12]

Something was signed into law, I haven't seen the exact thing yet, just seen Bush signing it.

[ernierocker]

tax rebate signed

 

It doesn't say in that article but the tax rebate will be an advance on a tax credit for next year. Basically, the rebate will not be taken out of your tax refund in 2009. The only effect this will have on someone is if they have a change in dependents this year. So, if you have a new child in 2008, you will get $300 more next year. However, if you have claimed a dependent in 2007, and then this year, you no longer claim that depedent (i.e. they go to college), you will not be penalized.

 

I still do not know if this tax rebate will be taxable or not.

[ParkTrips]

not giving money to high-income families is super lame.

[phazan]

Why can't the Government just buy stuff themselves and not worry about people spending their $600...Then they could just have a huge garage sale or something, and make money WHILE boosting the economy!!

 

Makes sense to me...

[spaceace12]

Well, I think I found the answer to my original question.

 

Q: Lynn H. asks, "Will the rebate be taxable income that we need to claim as income for 2008 on our tax returns? Will the checks be in the actual amounts quoted, or will there be taxes deducted?"

 

A: The rebates are not taxable. You will not have to report them as income for 2008. No taxes will be deducted from the rebates.

 

Rebates also will not be added to income to determine whether people are eligible for federal or federally subsidized programs such as food stamps or welfare.