Thankyou to the US goverment- "I am going to Disney World"

[capecodhome]

I am hoping with the extra tax money the goverment is giving to us to put back in the economy, I will put money down for a vacation in 2009 :sohappy:.

 

[TestTrack]

Just because they haven't said that the money is an advance for next year's tax refund doesn't mean that it isn't. They haven't said that it is and they haven't said that it isn't. At least everything I've read has not stated this. Convenient, for sure. I don't trust the IRS or the government. I'll just take the check with the understanding that it is and go from there. Hope for the best and prepare for the worst. That's all anyone can do.

If you read the text legistlation carefully they specify that it will be treated as having made a payment against the rebate on next taxes. AKA it will not be taxed.

In addition, if you read enough articles covering the stimulus plan they specify that the rebate will not be taxable(by the fed. gov.).

But you playing it safe definitely won't harm you at all. Just trying to explain that it's not going to be deducted from next year's refund. It's not the same as in 2001.

 

[macsmom]

I thought I had heard that people will be getting a check...period. No refund, no rebate, no nothing. Just a check to stimulate the economy. Pay no taxes, it is not an early refund on next year, we won't have to pay taxes on it. But then, everyone seems to be hearing different things. Last time they did this though, I qualified according to what people were saying, but I did not get a check. This time around, I seem to qualify again, but I am not counting on getting a check until it shows up in my mailbox.

danna

 

[Tiggerfanatic]

If you don't mind me asking, how much over? As I mentioned earlier in this thread, the cutoff is not a hard cutoff. If you make a buck over you will still get most of the refund.

In fact, you will still get SOMETHING until you make $87,000. Then it becomes nothing. Obviously, this is different if you are married.

I think I read that for every dollar you are over the income guidelines, your rebate is cut by 5%. So twenty bucks over puts you out completely.

There was a team with a video camerca outside our supermarket last night wanting to ask John Q. Public some questions about the rebate. When I stated that I wouldn't be getting one, they didn't want to talk to me.

 

[sweetpee_1993]

If you read the text legistlation carefully they specify that it will be treated as having made a payment against the rebate on next taxes. AKA it will not be taxed.

In addition, if you read enough articles covering the stimulus plan they specify that the rebate will not be taxable(by the fed. gov.).

But you playing it safe definitely won't harm you at all. Just trying to explain that it's not going to be deducted from next year's refund. It's not the same as in 2001.

I just don't trust the government or IRS. Never have. I'm oober-patriotic but terribly distrustful because there's too many politicians involved.

I think it's funny that they think this money will stimulate the economy and avoid a big recession. It's going to happen. I don't think it can be stopped at this point. Delayed or slowed but not avoided altogether.

 

[k.hunter30]

I wish I could receive a check...i make just barely above the salary cut off..sucks...middle class gets screwed again.

Wow... what is the income range for "middle class" then....?! To me, making about $90k is not "middle class" when the average FAMILY income in somewhere in the $40k. :shrug:

 

[TestTrack]

I thought I had heard that people will be getting a check...period. No refund, no rebate, no nothing. Just a check to stimulate the economy. Pay no taxes, it is not an early refund on next year, we won't have to pay taxes on it. But then, everyone seems to be hearing different things. Last time they did this though, I qualified according to what people were saying, but I did not get a check. This time around, I seem to qualify again, but I am not counting on getting a check until it shows up in my mailbox.

danna

If you had less than $3000 Taxable income in 2007 then you get nothing. Above that it is equal to your net income tax liability(liable for $400 in taxes you will get $400). There is a max and min to this however. You will get at least $300(if you made above $3000 in taxable income) and the most you can get is $600.

Most people will get $600.

If you are a couple you will get up to $1200, by the same terms as above but will be $600 for a couple up to a max of $1200. If your tax liability is less than $1200 then you will get that amount down to a minimum of $600.

For every child you claim as a dependent you will get an additional $300.

Hope this makes it clearer for some people. :animwink:

 

[TestTrack]

I think I read that for every dollar you are over the income guidelines, your rebate is cut by 5%. So twenty bucks over puts you out completely.

There was a team with a video camerca outside our supermarket last night wanting to ask John Q. Public some questions about the rebate. When I stated that I wouldn't be getting one, they didn't want to talk to me.

No, I intially thought this too, then I reread the bill.

5% of the difference you are over is deducted from your return. Therefore you have to get to $87000((87000-75000)*.05 = $600) before you get nothing.

 

[TestTrack]

Wow... what is the income range for "middle class" then....?! To me, making about $90k is not "middle class" when the average FAMILY income in somewhere in the $40k. :shrug:

People debate the range of middle class all the time. In the end, everybody wants to be middle class because there is some "shame" in being "poor" or "rich".

Kind of like how very few politicians take pride in being called an extreme conservative or a leftist(I think that's the right direction) liberal.

 

[TestTrack]

I just don't trust the government or IRS. Never have. I'm oober-patriotic but terribly distrustful because there's too many politicians involved.

I think it's funny that they think this money will stimulate the economy and avoid a big recession. It's going to happen. I don't think it can be stopped at this point. Delayed or slowed but not avoided altogether.

Most people agree with you. However, many companies are saying they don't see a full blown recession. Just a "slowing of growth".

No one really knows for sure.

 

[MichWolv]

No, I intially thought this too, then I reread the bill.

5% of the difference you are over is deducted from your return. Therefore you have to get to $87000((87000-75000)*.05 = $600) before you get nothing.

That's right. For singles, you get something up to $87K. Married is double that.

And while the rebate itself isn't taxable as income, that doesn't mean it won't be treated as a advance on your 2008 income tax refund. In other words, it is possible that when you calculate your 2008 taxes, you will need to take this payment into account in determining what you owe. That is why I said earlier that I'm now confused. I had thought the government wasn't going to do that again, but it appears I may have been wrong, or as OneLuckyMom said, "completely wrong" <g>.

 

[TestTrack]

That's right. For singles, you get something up to $87K. Married is double that.

And while the rebate itself isn't taxable as income, that doesn't mean it won't be treated as a advance on your 2008 income tax refund. In other words, it is possible that when you calculate your 2008 taxes, you will need to take this payment into account in determining what you owe. That is why I said earlier that I'm now confused. I had thought the government wasn't going to do that again, but it appears I may have been wrong, or as OneLuckyMom said, "completely wrong" <g>.

Just search around. You will find plenty of sources saying that this will not need to be paid back.

I suppose that you might have to claim the money as "income" but it's not going to be a dollar for dollar deduction against your refund. At worst, from the information I have, you would have to pay your normal income tax on the $600.

 

[MichWolv]

Just search around. You will find plenty of sources saying that this will not need to be paid back.

I suppose that you might have to claim the money as "income" but it's not going to be a dollar for dollar deduction against your refund. At worst, from the information I have, you would have to pay your normal income tax on the $600.

I did search around, but I've gottten confused. Originally, as you can see, I thought the same as you. Now I'm not sure. I'll wait till they actuall finalize the darned thing, while hoping that the deal blows up and they never put in place this ill-advised waste of a plan.

And you definitely won't be claiming it as income...it'll either be adjustment to the calculation of what you owe, or it'll not show up on your tax return at all. I hope the government isn't dumb enough to make the same mistake as the last time around, when people got surprised in the end...but who knows.

 

[TestTrack]

I did search around, but I've gottten confused. Originally, as you can see, I thought the same as you. Now I'm not sure. I'll wait till they actuall finalize the darned thing, while hoping that the deal blows up and they never put in place this ill-advised waste of a plan.

And you definitely won't be claiming it as income...it'll either be adjustment to the calculation of what you owe, or it'll not show up on your tax return at all. I hope the government isn't dumb enough to make the same mistake as the last time around, when people got surprised in the end...but who knows.

http://www.fox23news.com/news/local/story.aspx?content_id=499f2955-dbc6-49bf-947f-407feb22e165

That at least confirms it will not be taxable income. I have also seen a few sites say that it will not have to be paid back like 2001. So I personally think its safe to bet that this is different than the last go around.

 

[Tiggerfanatic]

No, I intially thought this too, then I reread the bill.

5% of the difference you are over is deducted from your return. Therefore you have to get to $87000((87000-75000)*.05 = $600) before you get nothing.

I guess I should have mentioned that I'm married, and our combined income falls above the cutoff. If it was based on straight time pay, we might be able to squeak out a small refund, but with the amount of overtime we both work, we're way out of the loop.

 

[TestTrack]

I guess I should have mentioned that I'm married, and our combined income falls above the cutoff. If it was based on straight time pay, we might be able to squeak out a small refund, but with the amount of overtime we both work, we're way out of the loop.

Then you can make up to $174,000 a year as a couple and still get something.

 

[Tiggerfanatic]

Then you can make up to $174,000 a year as a couple and still get something.

Well, we might be able to get a check for a dinner at Red Lobster, then! I do have a question on the child portion of the rebate - does anyone know if there is an age cutoff? DD turned 18 last year, but we still claim her as she is a student.

 

[TestTrack]

Well, we might be able to get a check for a dinner at Red Lobster, then! I do have a question on the child portion of the rebate - does anyone know if there is an age cutoff? DD turned 18 last year, but we still claim her as she is a student.

There is no cutoff provided she is a dependent.

 

[Eyorefan]

well, personally I would wait until the final bill is signed before I worry about the details of what it says. It has passed the House, it will get changed in the Senate, it will get and then changed again in committee.

 

[MichWolv]

well, personally I would wait until the final bill is signed before I worry about the details of what it says. It has passed the House, it will get changed in the Senate, it will get and then changed again in committee.

Indeed true. Sometimes the final bill looks nothing like the original. :hammer:

I just wish there was a chance they'd actually make the bill better!

As for the mechanics of how this thing will work. As planned for now it appears to me like the "rebate" will only show up on your tax return if you earn over the cutoff. So, if you earn less than 75K single or 150K married, the rebate will feel like just that. Your taxes for 2008 will be reduced by $600 single, $1200 married. As you will have received that amount during the year from the government, the preparation of your tax return at the end of the year will be unchanged. If you earn more than the cutoff, the tax return will require you to, in substance, pay back the amount of the rebate you got but are not entitled to keep.

That's my best guess for now, but things can and usually do change.

 

[TestTrack]

Indeed true. Sometimes the final bill looks nothing like the original. :hammer:

I just wish there was a chance they'd actually make the bill better!

As for the mechanics of how this thing will work. As planned for now it appears to me like the "rebate" will only show up on your tax return if you earn over the cutoff. So, if you earn less than 75K single or 150K married, the rebate will feel like just that. Your taxes for 2008 will be reduced by $600 single, $1200 married. As you will have received that amount during the year from the government, the preparation of your tax return at the end of the year will be unchanged. If you earn more than the cutoff, the tax return will require you to, in substance, pay back the amount of the rebate you got but are not entitled to keep.

That's my best guess for now, but things can and usually do change.

Your second half confuses me. They are not going to be sending checks to people who are beyond the cutoff(87K)