It passed...........

[yoyoma51]

Don't forget, this is a tax refund advance. You will be paying it back out of next years (2009) refund. If you claim too many exemptions, you will be paying it back on April 15, 2009.

[Cali]

Most of the money you get from the gov't is taxed.

[AMISLANDER]

Don't forget, this is a tax refund advance. You will be paying it back out of next years (2009) refund. If you claim too many exemptions, you will be paying it back on April 15, 2009.

I understand that we will be taxed on it in 2009. But it is totally seperate from our regular refund, just actually like extra income that the government can now collect a tax on right?

[$$only4ever]

Here is the link from CNN:

http://www.cnn.com/2008/POLITICS/

[yoyoma51]

Per the CNN article:

"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."

This is the same way it worked when they did it several years ago. It is like a payday advance (refund advance?) loan from the government.

Nothing more, nothing less.

http://www.cnn.com/2008/POLITICS/02/08/economic.stimulus/index.html

[krielly]

I just read that article you posted a link to and did not find that paragraph in it???????????

[FLBK7]

Don't forget, this is a tax refund advance. You will be paying it back out of next years (2009) refund. If you claim too many exemptions, you will be paying it back on April 15, 2009.

That's correct. They were talking about this very thing last night on CNN. As an example... If you're single and get a $600 rebate, next year your refund (if you're entitled to one) will be $600 LESS. If you are not due a refund and instead have to pay taxes, you'll pay $600 MORE.

Another reason why my "rebate" is going straight into savings!

[my4devils]

WOW- I am so glad I have this forum. I was going to have hubby change his deductions so we keep more money out of his check. This would be disastrous as we are expecting 2400 in May. We would have owed alot of money next spring. SO since this is an advance of next year's refund- how does the trustee's ability to swipe it come into play?

[krielly]

I'm still not convinced that will happen. Until I see it in writing, I'm skeptical.
It would not make any sense to simply advance a refund to someone, who may/may not even be eligible for one in 2008. How would they go about getting it back????
Sorry, I've seen some folks mention this, but haven't seen anything at all in the media about it.

Also, if this were true.......it was simply an advance which we would have to pay back next year, there wouldn't be so much concern that this was forcing the country into billions of dollars in debt........particularly if this scenario were true........we would all be paying it back anyhow..........

I agree that we will need to claim it on our 2008 taxes as income..........but that's a big difference from saying it is an advance on next year's refund...................sorry........not biting on that one just yet.

K

[FLBK7]

Krielly, I'm sure it'll be printed in black and white in every newspaper by Sunday. I've seen it in print already in various places, and extensively discussed on CNN last night.

This being an election year, the government does not want you to realize that it's really an advance on next year's refund. The exact same thing happened with the 2001 "Rebates." I got my $300, but my refund was $300 less in 2002.

[robivi3]

I got all my tax credits for kids, etc... Basically I don't recall it working in that fashion. According to my Turbotax records my effective rate and payment are pretty identical, factoring in about 6% per year in salary increases. I never owed anything beyond forty to fifty bucks either way. the only reason i would have owed the twelve hundred this year was because son number 3 is no longer under 17. I have my taxes figured so that I typically owe or get a refund within 50 dollars. Nothing of that sort has happened to me in recent years.

[FLBK7]

Okay, here it is, from MarketWatch (TaxWatch):

"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.""

Link to the entire article:

http://www.marketwatch.com/news/story/stimulus-package-means-you/story.aspx?guid=%7B76E54831-A58D-42A6-9A35-98D327C037D4%7D

[yoyoma51]

Interesting. The CNN article was edited after I posted the link here.

When this was done last time, it worked the same way. It was nothing more than a 'refund advance'.

Duh, this is NOT free money from the government being given to us.

I just called our CPA (who is a friend of mine) and he concurred.

PLEASE NOTE: I am not a lawyer. Bankruptcy may or may not be a best scenario for you. It depends on your situation. You may assume my advice is totally useless (my wife does, and she’s probably right). Talk to an experienced bankruptcy attorney (or three) in your jurisdiction for legal advice.

[magyar123]

Single seniors - getting only Social Security and possibly small interest from their banks - normally don't file anyway, will have to file a 2007 return to get the $300 rebate.
Also applies to individuals who only receive VA benefits.

[Cali]

I'm still not convinced that will happen. Until I see it in writing, I'm skeptical.
It would not make any sense to simply advance a refund to someone, who may/may not even be eligible for one in 2008. How would they go about getting it back????
Sorry, I've seen some folks mention this, but haven't seen anything at all in the media about it.

Also, if this were true.......it was simply an advance which we would have to pay back next year, there wouldn't be so much concern that this was forcing the country into billions of dollars in debt........particularly if this scenario were true........we would all be paying it back anyhow..........

I agree that we will need to claim it on our 2008 taxes as income..........but that's a big difference from saying it is an advance on next year's refund...................sorry........not biting on that one just yet.

K

The media doesn't always report the complete story.

The gov't doesn't give anything for free.