tax relief checks

[gwballin]

They're using this years (2007) income numbers and if you paid taxes in 07. Also, from what I understand it's going to effect next years taxes some . It's not so much free money as it is a semi-loan on next years taxes from yourself. Remember the last time this was done? 01 I thnk? Going to be the same way. You'll have to file it as income next year and get taxed on it again too.

It is true that 2007 tax return information will be the factor to determine who qualifies for the rebate.

It is also (technically) true that it is an advance on any potential 2008 federal tax refund, but it is free money as the mechanics of the bill create a one time tax credit that would otherwise never exist.

For simplicity the following example assumes a single taxpayer:

If the relief package had not been passed you would figure your 2008 tax liability the same way you always do by filing you income tax return.

Suppose when you do that you had a tax liability of $5,000 and tax payments (withholdings, estimated tax payments, etc.) of $6,000. You would be due a refund $1,000 since you over paid throughout the year.

Given the same facts above, but now take into account the one time $600 credit. That credit reduces you tax liability from $5,000 to $4,400 meaning you have now overpaid $1,600.

In stead of waiting to pay you the entire amount in 2009 when you will file your 2008 tax return to refund the overpayment you will get $600 now and $1,000 later. So it is "free money" (a term that I don't particularly like) to the extent that the bill reduces your tax liability.

Also, federal tax refunds are never taxable income so you will not have to claim this payment as income to be taxed. It will be reported on the return to show that you have already received partial payment which is needed so that you do not receive benefit of the credit twice.

[2MuchFun]

No tax refund for me. I get paid under the table.

Infernal Revenue Service

[gwballin]

No tax refund for me. I get paid under the table.

Infernal Revenue Service

That is until you get audited, then its You---><---IRS



Special thanks to Y2KPewterSS for the smilie.

[Stevie]

They're using this years (2007) income numbers and if you paid taxes in 07. Also, from what I understand it's going to effect next years taxes some . It's not so much free money as it is a semi-loan on next years taxes from yourself. Remember the last time this was done? 01 I thnk? Going to be the same way. You'll have to file it as income next year and get taxed on it again too. The saying still stands " If it sounds to good to be true then it probably is." or "Nothing in life is free." or " It's a dog eat dog world and I'm wearing milkbone underwear." Ok, well the last one doesn't apply. I just wanted to throw that one in there.

lol - well it might actualy work out for me - snce this year i will be in a lower tax bracket. hey something positive to getting a pay cut,lol

[0rion]

unless you made over $75k single or $150k couple you'd be getting one regardless. Not sure on your situation with your child but if you claim your child you get an extra $300 from what I understand. I know some people alternate that.

[Mr. Luos]

Hmmm....a tank of gas.

[Stevie]

unless you made over $75k single or $150k couple you'd be getting one regardless. Not sure on your situation with your child but if you claim your child you get an extra $300 from what I understand. I know some people alternate that.

i have two kids but we each claim one. - i was mostly curious of the year cause my 2006 i filed married and we did hve over 150k - but not his year. and next year even less.

[Y2KPewterSS]

That is until you get audited, then its You---><---IRS



Special thanks to Y2KPewterSS for the smilie.

Little FYI, that smilie is KY free.

[FasstChevys]

This is the dumbest f*cking rebate ever.....all it is, is a political morale booster because of the election year. It isn't going to accomplish a damn thing other than pay the overdue heat bills from the winter!

[third_shift|studios]

This is the dumbest f*cking rebate ever.....all it is, is a political morale booster because of the election year. It isn't going to accomplish a damn thing other than pay the overdue heat bills from the winter!

agreed, 600 is poop. not to mention...where the hell did $1.4billion get figured as "disposable" to the US? Didn't Bush just ask for some rediculous 3 trillion dollars for the war?

[0rion]

This is the dumbest f*cking rebate ever.....all it is, is a political morale booster because of the election year. It isn't going to accomplish a damn thing other than pay the overdue heat bills from the winter!

so you're saying some people will get to pay their overdue heating bills and in the same sentence you say it isn't going to accomplish a damn thing. Let me guess, democrat?

[FasstChevys]

so you're saying some people will get to pay their overdue heating bills and in the same sentence you say it isn't going to accomplish a damn thing. Let me guess, democrat?

Touche and no, I'm a republican. I'm just really saying it's bullshit. Is that better?

It just simply isn't enough money to really make much of a difference in my opinion.

[0rion]

Touche and no, I'm a republican. I'm just really saying it's bullshit. Is that better?

It just simply isn't enough money to really make much of a difference in my opinion.

I agree, it's not gonna make a huge economical difference for the majority but for a few people I think it will. I'll probably just blow a little bit of it and put the rest in my kids accounts.
I think the political side of it goes a couple different ways. Politicians are crooks pretty much no matter which side they play for. The republican's are glad the came up with the idea and the democrats are jealous they didn't.

[Stevie]

I agree, it's not gonna make a huge economical difference for the majority but for a few people I think it will. I'll probably just blow a little bit of it and put the rest in my kids accounts.
I think the political side of it goes a couple different ways. Politicians are crooks pretty much no matter which side they play for. The republican's are glad the came up with the idea and the democrats are jealous they didn't.

a politician is a politician. we don;t much control over it now - so i think i will take the money