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SweetestOfPeas
J'taime Paris!
Member since 3/06 32345 total posts
Name:
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Important info regarding tax rebates/stimulus package
I found out about this yesterday from my Accountant. it's not what it seems! it's basically a "loan" on your 2008 tax refund.
"The rebates represent a 2008 tax cut. But instead of getting the tax cut next year, when you file your 2008 return, you'll get it this year.
If it turns out that you would have gotten a bigger tax rebate based on your 2008 tax return, the IRS will refund you the difference. For example, a middle-income family that has a baby born in 2008 should be able to reap an extra $300 when they file their tax return next year, Luscombe says.
On the other hand, if you would have gotten a smaller rebate based on your 2008 return, you won't have to pay back the difference, says Bob Scharin, RIA Senior Tax Analyst from Thomson Tax & Accounting."
source
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Posted 2/17/08 11:14 AM  |
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ali120206
2 Boys
Member since 7/06 17792 total posts
Name:
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Re: Important info regarding tax rebates/stimulus package
Yes, I saw that somewhere as well. I knew there had to be a catch since they were borrowing money to pay it out!
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| Posted 2/17/08 11:32 AM |
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SweetestOfPeas
J'taime Paris!
Member since 3/06 32345 total posts
Name:
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Re: Important info regarding tax rebates/stimulus package
Posted by ali120206
Yes, I saw that somewhere as well. I knew there had to be a catch since they were borrowing money to pay it out!
the one good thing is that if you were to get less than your rebate amount when you do your 2008 taxes, you won't have to pay it back.
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| Posted 2/17/08 11:37 AM |
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MDF
.
Member since 5/05 2313 total posts
Name:
Melissa
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Re: Important info regarding tax rebates/stimulus package
So what do you do if you dont want the money? I would rather get my full 2008 refund (if any) then to get less because I got some of it this year. This is horsecrap if you ask me....
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| Posted 2/17/08 11:52 AM |
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Erica
LIF Adult
Member since 5/05 11767 total posts
Name:
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Re: Important info regarding tax rebates/stimulus package
so if you are supposed to get $100 back in 2008 - they are calling it a wash?
Should I readjust my holdings?
what if you owe in 2008?
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| Posted 2/17/08 11:54 AM |
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SweetestOfPeas
J'taime Paris!
Member since 3/06 32345 total posts
Name:
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Re: Important info regarding tax rebates/stimulus package
Posted by MDF
So what do you do if you dont want the money? I would rather get my full 2008 refund (if any) then to get less because I got some of it this year. This is horsecrap if you ask me....
I don't think you have that option. it definitely stinks and its grossly misrepresented!
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| Posted 2/17/08 12:08 PM |
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SweetestOfPeas
J'taime Paris!
Member since 3/06 32345 total posts
Name:
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Re: Important info regarding tax rebates/stimulus package
Posted by Erica
so if you are supposed to get $100 back in 2008 - they are calling it a wash?
Should I readjust my holdings?
what if you owe in 2008?
if you're only supposed to get $100 back when you do your 2008 taxes, you don't have to pay back what you get this summer. so in that respect, I guess it's a plus.
my problem with this "stimulus package" is that it is so misrepresented! even though there is plenty of info about it out there, no one is talking about the fact that it is a "loan" on your 2008 tax return 
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| Posted 2/17/08 12:10 PM |
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Blu-ize
Plan B is Now Plan A
Member since 7/05 32475 total posts
Name:
Susan
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Re: Important info regarding tax rebates/stimulus package
Posted by SweetestOfPeas
Posted by MDF
So what do you do if you dont want the money? I would rather get my full 2008 refund (if any) then to get less because I got some of it this year. This is horsecrap if you ask me....
I don't think you have that option. it definitely stinks and its grossly misrepresented!
get the check and sock it away. When you do your taxes next year you'll know what to do with it.
Totally bogus stimulous package.
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| Posted 2/17/08 12:33 PM |
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BabyBoy
is Skylar Elizabeth
Member since 5/05 4189 total posts
Name:
Tom
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Re: Important info regarding tax rebates/stimulus package
Posted by SweetestOfPeas
Posted by MDF
So what do you do if you dont want the money? I would rather get my full 2008 refund (if any) then to get less because I got some of it this year. This is horsecrap if you ask me....
I don't think you have that option. it definitely stinks and its grossly misrepresented!
i stated this in the last thread about this topic and none seemed to care...
i knew this since day one..the media does make it seem like just free money...
nothing is free
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| Posted 2/17/08 2:21 PM |
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pinkandblue
Our family is complete, maybe
Member since 9/05 32436 total posts
Name:
Stephanie
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Re: Important info regarding tax rebates/stimulus package
So does that mean that, let's say, we were to get back 5,000 in 2009 for 2008 tax year, we would only get back 3,500 because we already got back 1,500 from this stimulus package?
Am I understanding this correctly?
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| Posted 2/17/08 2:58 PM |
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Blazesyth
*yawn*
Member since 5/05 8129 total posts
Name:
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Re: Important info regarding tax rebates/stimulus package
Posted by stephanief
So does that mean that, let's say, we were to get back 5,000 in 2009 for 2008 tax year, we would only get back 3,500 because we already got back 1,500 from this stimulus package?
Am I understanding this correctly?
Everytime I read a new article, I get a different impression from it. So I will say that I have no clue. 
Message edited 2/17/2008 3:31:40 PM.
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| Posted 2/17/08 3:06 PM |
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Blazesyth
*yawn*
Member since 5/05 8129 total posts
Name:
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Re: Important info regarding tax rebates/stimulus package
Posted by BabyBoy
i stated this in the last thread about this topic and none seemed to care...
i knew this since day one..the media does make it seem like just free money...
nothing is free
Pfft, didn't you know that nobody listens to you around here? You can't put real important info in the middle of a thread, you need to start a new one if you want anyone to actually read it. 
But I do remember your post and thought it was funny that everyone glossed over it.
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| Posted 2/17/08 3:08 PM |
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Mommy2Boys
My Boys!!!!
Member since 6/06 14437 total posts
Name:
C
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Re: Important info regarding tax rebates/stimulus package
That f*cking $uck$! They make it sounds like it's free money I knew there was a catch!
Message edited 2/17/2008 3:20:37 PM.
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| Posted 2/17/08 3:20 PM |
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anjerandunder
Positive thoughts worked!!!
Member since 6/06 1909 total posts
Name:
J
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Re: Important info regarding tax rebates/stimulus package
This is a quote from the article and it gets my blood boiling..I want my money next year when its due to me not now when I'm already getting a refund!! ARRRRGGGHHHH
"Your 2008 refund might be smaller than what you calculate on your return because you have already received the refund in advance, Luscombe says. But it still represents more money in your pocket."
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| Posted 2/17/08 4:29 PM |
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Blu-ize
Plan B is Now Plan A
Member since 7/05 32475 total posts
Name:
Susan
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Re: Important info regarding tax rebates/stimulus package
Posted by Blazesyth
Posted by BabyBoy
i stated this in the last thread about this topic and none seemed to care...
i knew this since day one..the media does make it seem like just free money...
nothing is free
Pfft, didn't you know that nobody listens to you around here? You can't put real important info in the middle of a thread, you need to start a new one if you want anyone to actually read it.
But I do remember your post and thought it was funny that everyone glossed over it.
I do as well. Some didn't gloss over it like me.
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| Posted 2/17/08 4:30 PM |
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BabyBoy
is Skylar Elizabeth
Member since 5/05 4189 total posts
Name:
Tom
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Re: Important info regarding tax rebates/stimulus package
Posted by Blu-ize
Posted by Blazesyth
Posted by BabyBoy
i stated this in the last thread about this topic and none seemed to care...
i knew this since day one..the media does make it seem like just free money...
nothing is free
Pfft, didn't you know that nobody listens to you around here? You can't put real important info in the middle of a thread, you need to start a new one if you want anyone to actually read it.
But I do remember your post and thought it was funny that everyone glossed over it.
I do as well. Some didn't gloss over it like me.
yeah...well, some people read it so i guess i can live with that...
the last thread (not the first) everybody has been quote up in seeing who qauliflies for this stupid money..
i'm glad people research stuff on lif instead of going to the source of articles or events instead of finding out though other experiecences..
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| Posted 2/17/08 4:56 PM |
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cutie
LIF Adult
Member since 2/06 1893 total posts
Name:
Janine
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Re: Important info regarding tax rebates/stimulus package
Posted by MDF
So what do you do if you dont want the money? I would rather get my full 2008 refund (if any) then to get less because I got some of it this year. This is horsecrap if you ask me....
You can ask your accountant to give you an estimated payment voucher for the amount of your check. Then when you get the check, you cash it and then mail it right back to them with the voucher.
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| Posted 2/17/08 5:22 PM |
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SweetestOfPeas
J'taime Paris!
Member since 3/06 32345 total posts
Name:
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Re: Important info regarding tax rebates/stimulus package
Posted by stephanief
So does that mean that, let's say, we were to get back 5,000 in 2009 for 2008 tax year, we would only get back 3,500 because we already got back 1,500 from this stimulus package?
Am I understanding this correctly?
yup - you're understanding it correctly
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| Posted 2/17/08 7:11 PM |
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Blazesyth
*yawn*
Member since 5/05 8129 total posts
Name:
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Re: Important info regarding tax rebates/stimulus package
The way my husband reads it is that yes, it is an advance on next year's return. But the advance is only due to a new law that increases everyone's credits, so you would still get your normal return for 2008.
For example:
You 'usually' get 5,000 back.
They signed in a law for 2008 that would give you a tax break of an additional 1,200.00.
So your 2008 return would be 6,200.
In order to stimulate the economy, they are going to give you the 1200 now; so you would still get your 'typical' 5000 back for 2008. Then, the next year for your 2009 return you would get 6,200.
This is just the way he reads it - he is not an accountant or anything it's just his theory. We goto the accountant tomorrow, so I will ask him and we will see what he says.
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| Posted 2/17/08 8:51 PM |
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SweetestOfPeas
J'taime Paris!
Member since 3/06 32345 total posts
Name:
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Re: Important info regarding tax rebates/stimulus package
bumping for anyone who didn't see
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| Posted 2/18/08 9:39 AM |
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Woodsy
LIF Infant
Member since 6/05 241 total posts
Name:
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Re: Important info regarding tax rebates/stimulus package
Posted by stephanief
So does that mean that, let's say, we were to get back 5,000 in 2009 for 2008 tax year, we would only get back 3,500 because we already got back 1,500 from this stimulus package?
Am I understanding this correctly?
First of all, I think this stimulus package thing is ridiculous. Of course, maybe I'm just bitter that I'm not getting a red cent.
Anyway, your rebate will be included as income on your 2008 tax return. If you get a $1,500 rebate check in 07, your 08 refund will NOT be reduced by $1,500. Instead, it will be taxed in the tax bracket you are in. So, let's say you are in the 25% bracket. You will have to pay $325 of taxes on that $1,500 (i.e. 25% of $1500). So, you would have netted $1,175.
I'm not an accountant but this is how I read the law....
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| Posted 2/18/08 9:48 AM |
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SweetestOfPeas
J'taime Paris!
Member since 3/06 32345 total posts
Name:
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Re: Important info regarding tax rebates/stimulus package
Posted by Woodsy
Posted by stephanief
So does that mean that, let's say, we were to get back 5,000 in 2009 for 2008 tax year, we would only get back 3,500 because we already got back 1,500 from this stimulus package?
Am I understanding this correctly?
First of all, I think this stimulus package thing is ridiculous. Of course, maybe I'm just bitter that I'm not getting a red cent.
Anyway, your rebate will be included as income on your 2008 tax return. If you get a $1,500 rebate check in 07, your 08 refund will NOT be reduced by $1,500. Instead, it will be taxed in the tax bracket you are in. So, let's say you are in the 25% bracket. You will have to pay $325 of taxes on that $1,500 (i.e. 25% of $1500). So, you would have netted $1,175.
I'm not an accountant but this is how I read the law....
that is not correct. my Accountant said that if we were to get lets say $2K back on our 2008 tax return, we would only get back $800 since we're getting the $1200 rebate.
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| Posted 2/18/08 9:55 AM |
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bomb-blast
bye bye
Member since 11/06 1327 total posts
Name:
Leo
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Re: Important info regarding tax rebates/stimulus package
Facts About the 2008 Stimulus Payments
Stimulus Payments: FAQ
Message edited 2/18/2008 9:58:06 AM.
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| Posted 2/18/08 9:57 AM |
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MsMBV
:P
Member since 5/05 28602 total posts
Name:
Me
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Re: Important info regarding tax rebates/stimulus package
Posted by MDF
So what do you do if you dont want the money? I would rather get my full 2008 refund (if any) then to get less because I got some of it this year. This is horsecrap if you ask me....
Beat the system. Take it and put it into a 1 yr CD & make the interest That way you'll have the $$ next year, plus the interest to boot.
(I agree that it is horsecrap, but hey, if you can beat the system..go for it)
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| Posted 2/18/08 10:30 AM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: Important info regarding tax rebates/stimulus package
Posted by Woodsy
Posted by stephanief
So does that mean that, let's say, we were to get back 5,000 in 2009 for 2008 tax year, we would only get back 3,500 because we already got back 1,500 from this stimulus package?
Am I understanding this correctly?
First of all, I think this stimulus package thing is ridiculous. Of course, maybe I'm just bitter that I'm not getting a red cent.
Anyway, your rebate will be included as income on your 2008 tax return. If you get a $1,500 rebate check in 07, your 08 refund will NOT be reduced by $1,500. Instead, it will be taxed in the tax bracket you are in. So, let's say you are in the 25% bracket. You will have to pay $325 of taxes on that $1,500 (i.e. 25% of $1500). So, you would have netted $1,175.
I'm not an accountant but this is how I read the law....
This is how I read the law as well. They are just counting it as taxable income so while your next year's refund will go down, it won't be going down $1200.
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| Posted 2/18/08 11:46 AM |
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