Can anyone give me a simple answer about this rebate we're supposed to get in May?

[hedgehog]

Is it really just an early refund on this year's taxes? Like if I would normally get $800 back next Spring, would I get $300 now and $500 next Spring?

[Lost-in-FL]

1. No

It is $600 in addition to your return. Like free money for you to spend.

[Dr.Phool]

2. No, unlike the last time, you won't have to pay this one back.

This week, I get to send them $1500. Next month, they send me back $1200.

[CC]

3. No

Whatever your refund for this year is it will remain the same. If it is $800 this year you should of got it, or get it if you haven't filed yet. The $600. is extra that will come sometime in either May or this summer, depending when you file your 07 returns. Next year if you would be due an $800 refund you will get that refund.


More info here http://www.irs.gov/newsroom/article/0,,id=179181,00.html

[lligrd]

4. From H&R Block

http://digits.hrblock.com/taxrebate/

Asked Questions
1. Will the tax rebate (stimulus payment) affect the tax return I must file by April 15, 2008?
No, there's no effect on this year's return. However, the amount of your tax rebate (payment) does depend on your information from the 2007 tax return you'll file by April 15.
2. Will the tax rebate be considered income and will I be taxed on it next year on my 2008 return?
No and no. The tax rebate is an ADVANCE CREDIT for tax year 2008 and will be calculated on your 2008 return. If you're due a higher payment, you'll get the remainder next year when you file. If you received a higher rebate (payment) than you should have, you DO NOT have to pay it back.

[hedgehog]

5. It sounds as if it is an advance against next year's refund, but that

if the refund ends up lower than the advance, the IRS will not be trying to collect the difference.

[lligrd]

6. Yep, Sounds Like If You Pay too Much Next Year

the amount you get back will be reduced by the rebate but if you pay just the right amount (no refund due) you get to keep it. Try planning that out.

[Muttocracy]

11. but see IRS statement in my post below? nt

[lligrd]

12. Interesting, I Guess We Will Find Out For Sure Next Year nt

[napi21]

7. NO! The last one was like that, but this one is not! As long as you

file a tax return and had $3,000 of income, you'll get your check.

[tkmorris]

8. Cite a source please

All of the actual information I have seen indicates it is an advance.

[Muttocracy]

10. see post below nt

[Muttocracy]

9. Here's IRS statement:

"What is it? It's an economic stimulus payment that more than 130 million households will receive starting in May. It's not taxable, and it won't reduce your 2007 or 2008 refund or increase the amount you owe when you file your 2008 return."

http://www.irs.gov/newsroom/article/0,,id=179211,00.html

[lligrd]

13. Wait, It Says It Won't Reduce Your Refund

And H&R says the same. But H&R goes on to say that although your refund will remain the same, you will already have gotten part of it and will only get the rest of it next year.

[Muttocracy]

15. except from post 3 above

http://www.irs.gov/newsroom/article/0,,id=179181,00.html#Other

Q. Will the payment I receive in 2008 reduce my 2008 refund or increase the amount I owe for 2008?

A. No, the Stimulus Payment will not reduce your refund or increase the amount you owe when you file your 2008 return.

[KharmaTrain]

14. It's A GOOP Bribe...

Funny money that this regime hopes you'll take and forget about Iraq and how shitty the economy is. He did the same crap in 2002. It's a one-time payout that is supposed to "spur" the economy...but most will need it to pay for higher fuel and other costs.