we don't have to pay it back!!

[Mommabean]

Wait? hold the boat?
I just read this article and now that explains the stimulus package and this area got me good.

Do I have to pay the rebate back?

No. And here's why.

Your rebate is a one-time tax cut - an advance on a credit you'll receive on your 2008 return.

It's based on your 2007 income initially. If it turns out that your 2008 income and number of children would have qualified you for a larger rebate than the one you received, you'll be sent the difference. If it turns out your 2008 income was lower than in 2007 and you should have gotten a lower rebate, you get to keep the difference.

"If you were supposed to receive a larger payment than you did, you will get the extra money," said Treasury spokesman Andrew DeSouza. "If you received more than what you should have gotten, you will not be penalized."

http://money.cnn.com/2008/02/08/pf/t...ex.htm?cnn=yes


so Now ...now can I get excited about this bad boy??? I won't have to pay it back...man because we sure as heck could use a couple extra hundred bucks...and the 1800 from this bad boy would just be icing!

[Dragonfly]

Finally some accurate reporting.

[MissMommyNiceNice]

Sure, we don't have to pay it back, but our children will down the road. The government is going to go further into debt to give us this stimulus.

Now, that being said, I've personally started shopping for a new laptop. :

[baileyandmikey]

but will it reduce our refunds in 2008?

[ChattyCat]

Originally Posted by MissMommyNiceNice

Sure, we don't have to pay it back, but our children will down the road. The government is going to go further into debt to give us this stimulus.

Yep. We're borrowing from the future. Dh and I mutually decided that we're splitting our check between the 2 kids college funds. They'll be the one's paying it back eventually. I don't think that's going to help the economy all that much, when I put our $900 into each 529.

[Dragonfly]

Originally Posted by baileyandmikey

but will it reduce our refunds in 2008?

No.

[DandeCobb]

has this been 100% finalized? and if so, when is it supposed to be coming??

[asianyoushi]

yep its finalized i believe...

the first checks should be out in mid may... since april 15th is tax day. the people who filed asking for extensions and or late will probably get their checks in july...

[Dragonfly]

The Senate and House have both passed it. It's now up for the President's signature, which is expected to happen in the coming week.

[nolansmummy]

I have to say that although i don't really think this is a smart way to go about boosting the economy, i'm kinda excited about getting a little extra money. We're in school right now, and things are so tight, it will be nice to have a little breathing room.

[KariM]

Good news for our savings account!

So does that mean we'll get another $300 credit for our baby due to be born in April 2008 after we file the 2008 taxes?

[Moon Faerie]

I'm still confused. So if we made approx $35K last year, but we ended up getting back more than we paid in after deductions, child credits, EIC, etc, am I correct that as a couple we'll get $600? And then $300 for each for our 2 kiddies?

[onlyboys]

Originally Posted by Nikel1979

I'm still confused. So if we made approx $35K last year, but we ended up getting back more than we paid in after deductions, child credits, EIC, etc, am I correct that as a couple we'll get $600? And then $300 for each for our 2 kiddies?

No, it looks like you'll get back $1200 plus $600 so $1800 total. If I am reading the article right.

[Pancakes]

Your rebate is a one-time tax cut - an advance on a credit you'll receive on your 2008 return.

I'm confused as well. If it's an advance on your tax return for '08, how on earth can it be something that isn't paid back? From what that says, you will have to deduct the rebate amount from your '08 return.


This whole rebate thing makes me mad anyway. grumble grumble

[Dragonfly]

You don't pay it back because this is a new, one-year credit that augments your refund. You will reconcile it on your return next year, but it has no impact on your bottom line and will not reduce your refund. In essence, it reduces your tax liability by the amount of the rebate. If you, for some reason, receive more for the rebate than you qualify for when you reconcile next year, it zeroes out. You don't pay it back and it doesn't reduce your refund.

[avendesora]

It doesn't actually make any of us more financially well off, because they're funding it simply by printing the extra money - meaning it's going to worsen the inflation situation. So none of us will actually be any richer.

Aven

[beccalou79]

There's a good explanation of it here on the MSN Money website:

http://articles.moneycentral.msn.com...axRebates.aspx

[Porcelain Interior]

I'm not buying stuff with it because I'm peeved with the whole thing, don't get me wrong I'm super excited about using it to pay debts, but our country just doesn't have the money to be doing this.

Here's where I'm coming from:

http://www.simpleliving.net/rebate/D...y_It_Flyer.pdf

[athansor]

What if you typically owe at tax time? Last time there was a rebate, I ended up owing more than ever the next time around. We usually try to break even with taxes and have enough withdrawn to neither owe nor get a refund, and usually end up owing just a bit.

[Dragonfly]

This credit generally wouldn't make a difference in whether or not you owe because it's being paid to you in advance. The only way you would see a difference next year is it turns out that you qualified for more than you were paid this year (which could happen if your 2008 filing circumstances are different than 2007). In that case, it would reduce your liability.