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

[JollyGG]

The way it worked last time was they changed the tax code. So basically, I think last time it was a $300 check. So basically the change in the tax code made my tax burden $300 less. So the next Spring when I filed, my return would have been $300 larger, or had I owed I would have owed $300 less. Well instead of waiting until spring everyone basically got that part of their tax return six months early.

It looks to me like this is basically the same thing.

By eliminating the 0-10% tax bracket. That means that the first $6000 we earn each year won't be taxed (where it was taxed at 10%). So that means that each person would owe around $600 less in taxes this year than they did last year. They are giving us this $600 now instead of in the spring. Then next year when the deductions are taken out of our paychecks the rate will be determined based on the new tax code.

So assuming all your deductions and your income remains the same this year as last year you should expect about the same return. So basically this is an advance on next springs income tax return, however it is an advance based on changes to the tax law. Had they changed the tax brackets and not given us the rebate checks now you would have seen a $600 larger return in next spring, or had you owed you would have owed $600 less next year.

[dp1969]

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/...lus/index.html

If this is true and we will be paying it back...then a trustee could not "double dip" on that, could they. Suppose at our 341 the trustee wants to take the refund...then in 12 months time, I'm having it deducted again (not to see any of it)???

[Bandit]

If this is true and we will be paying it back...then a trustee could not "double dip" on that, could they. Suppose at our 341 the trustee wants to take the refund...then in 12 months time, I'm having it deducted again (not to see any of it)???

well you know, only us folk in BK would think about it that way. Trust me, that was the first thing that came to mind was the trustee ripping it right out of my hands. Technically it is a refund but they just call it a rebate because they want us to believe our dirt bag leaders are stimulating the economy.

But it will all just go right to China & the dirt bag leaders & owners of China factories when we spend it.

I suppose what you say is still possible for some & I bet some Trustees are thinking along those same lines, wondering thenselves.

[JollyGG]

From MSN article http://articles.moneycentral.msn.com...axRebates.aspx

To produce this cash, Congress created a one-time tax credit to reduce taxable income for most taxpayers this year.

Normally, you wouldn’t see that cash until the spring of 2009, when you filed your 2008 return. But Congress wants to speed that money to you now, so checks will start going out in May.

It was a very clear, informative, and well written read. I'd suggest giving it a look.

[erinmi]

I have read several places that anyone overpaid in the rebate once they do their 2008 taxes will NOT have to repay any of the money to the IRS. If you have different information in 2008 than in 2007 on your taxes and you would have gotten a larger rebate, you will get the additional with your 2008 taxes.

Here is a good article from CNNMoney about the rebate and how it works: Rebates: What you need to know

[robivi3]

Looking back I think I was wrong. I had the benefit of the child tax credit for years. That evened things out every year. This year without that benenfit I woe, I owe! I think this is simply an advance.

[PaKettle]

NOte that a lot of the stuff in this thread is wrong about the tax "rebate" or "incentive" checks we'll be getting. See the "Rebate : from the horse's mouth" thread for accurate info.