Tax Rebate Checks in the Mail by Spring

[Hissyspit]

Source: Associated Press

Tax rebate checks in the mail by spring
By JEANNINE AVERSA, AP Economics Writer
26 minutes ago

WASHINGTON - The checks aren't in the mail, but they will be soon. President Bush signed legislation Wednesday to rush rebates ranging from $300 to $1,200 to millions of people, the centerpiece of government efforts to brace the wobbly economy. First, though, you must file your 2007 tax return.

More than 130 million people are expected to get the rebates, starting around May. Congress, Bush, the Federal Reserve and Wall Street are hoping the money will burn such a hole in people's pockets that they won't be able to resist spending it. And the spending is supposed to give an energizing jolt to a national economy that is in danger of toppling into a recession if it hasn't already.

Whether people actually spend the money remains to be seen. A recent Associated Press-Ipos poll indicates most people have other plans. Forty-five percent said they planned to pay off bills, while 32 percent said they would save or invest it. Only 19 percent said they would spend their rebates.

The measure Bush signed — a $168 billion rescue package passed with lightning speed by Congress last week — includes not only rebates for individuals but also tax breaks for businesses to spur investment in new plants and equipment. That, too, would help bolster U.S. economic activity. The package also contains provisions aimed at helping struggling homeowners clobbered by the housing collapse and the credit crunch refinance into more affordable mortgages.

Read more: http://news.yahoo.com/s/ap/20080213/ap_on_go_pr_wh/economy_stimulus

[Ano Genitus]

1. Cash those puppies quick.

[DS1]

2. Did my taxes today

wheee

[Name removed]

3. Deleted message

Message removed by moderator. Click here to review the message board rules.

[bpeale]

5. HOLY SHIT! that last line was a real zinger & you should get a DUZY for it!

[ldf]

12. and THAT is the difference

between a "10" and an "11"...

:-)

[Yavapai]

10. The Cowboy 3 biggest lies

1- "Yes Mame, I won this belt buckle in the rodeo"

2- "Yes Mame, I paid cash for that pick up"

3- "No Mame, I was just pushing that sheep back through the fence"

[uppityperson]

4. I still can't tell if we have to pay them back next yr.

Read on CNN yes, read elsewhere no. Help?

[Hissyspit]

8. You have to pay China back. They own our debt.

Seriously, though, I don't know.p]

[pinniped]

14. Check this:

How tax rebates work in stimulus package

http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2008/02/12/BUOAV0BJP.DTL

[Jeff In Milwaukee]

20. Here's what I think...

You'll do your 2008 taxes as usual. There will be a line on the 1040 for "Economic Stimulus Package" or some such jazz, and a worksheet. You'll calculate what you having coming based on your 2008 return information, and then reduce that amount by the amount of the check you received this summer. If you are at zero or below, you don't have to pay anything back. If you're above zero (maybe because you had a child in 2008), you'll get an additional refund.

[peace13]

6. Oh good!

I will be able to buy my dream house after all.

[Myrina]

7. $300: payable to Halliburton in exchange for 5 tanks of gas ...

:puke:

[sarcasmo]

9. Wouldn't it be funny if they bounced.

[L0oniX]

11. I'll use mine to pay off the IRS ...go figure. n/t

[juajen]

13. I read on Yahoo last week that they were not an advance.

They do not have to be paid back. Perhaps they learned their lesson from last time. Rebate is totally different from an advance.

[Lance_Boyle]

21. not quite

this is an advance on a tax cut for 2008. If you get a $600 "rebate" this Spring, your refund (if any) for your '08 taxes will be $600 less. My understanding, though, is that if you owe money when filing your '08 taxes, you will not be required to add $600 to that figure.

It really is an advance on next year's refund.

[Jeff In Milwaukee]

23. Good point...

That's my understanding as well. It will not increase your tax liability.

And from what I've gathered, if you have elderly family and friends who don't file a federal tax return (because they don't meet the filing requirement) they WILL have to file a 2007 "zero balance" return in order to receive their check this summer.

Now I assume that if you don't do that, you can still file the zero balance return for 2008 and claim the credit that way. It's a refundable credit, so it should work.

[joeglow3]

24. It I S an advance AND a tax cut all in one

They passed a tax cut for 2008 only and are sending out a check for that amount. Thus, so while it is an advance, it truly does represent a net gain to you from before the bill was passed.

[Jeff In Milwaukee]

22. They are an advance...

As I said upthread, my guess is that you'll calculate your "rebate" based on your 2008 tax information, and then that amount will be offset by the amount of the check you get this summer.

The summer check is absolutely an advance on your 2008 refund.

[Acadia Blue]

15. BFD! just enough to hide what would come out before dumbo leaves

office. So the little stupid greed pig snot can say that the Dems cause the recession he caused with his corporatist tax give away trillion dollar war for his buds.

[Javaman]

16. Do not spend it!!! don't!!! invest it Euros or gold, just not in this fiat economy!!

I refuse to give into moron* hairbrained asshole scheme. It's found "money" that was lent to us from China. Don't spend it at all!!!

[CountAllVotes]

17. oh goody

Maybe I can pay part of my property taxes with it if I get anything at all. :eyes:

:dem: :kick:

[tuckessee]

18. Just in time for a summer gas price hike.

Exxon thanks you in advance for spending your rebate check with them.

[Doctor_J]

19. Deficit loads in the mail

Your loans from your grandchildren will be there shortly.

:sarcasm: