Tax rebate 2008 question?

Hello%26gt;

I realize the Tax rebate for this year has officially been put in place but I am confused on something. It says it is an advance of credit on your 2008 tax return. I am single, no chikldren and make less than the 75K. So I am eligable for the $600. So say I receive a 900 return in 2008- does this mean I would only actually receive 300? IF so, then this is not really an economic stimulus, just a loan on your 08 tax return, and it is your money to begin with then. Or am I confused%26gt;?

Tax rebate 2008 question?

The rebate will not effect your 2008 federal tax liability or refund. The law says the IRS can%26#039;t recover any extra rebate payment by reducing your 2008 refund or adding to your 2008 tax bill.

The %26quot;rebate%26quot; is an advance credit against your 2008 tax return (which will be filed in 2009). However, it is calculated based on the amounts shown on your 2007 return. When you file your 2008 return, the IRS will recalculate your %26quot;rebate%26quot; based on the 2008 amounts. If this results in a larger %26quot;rebate%26quot;, you will receive a check for the difference. If this results in a smaller rebate, you will not have to repay the difference.

The %26quot;rebate%26quot; will not increase or decrease any tax refund to which you are entitled. It is an additional refund.

Tax rebate 2008 question?

The tax rebate is part of an economic stimulus package like the one you may have received in 2001. It has nothing to do with your actual tax refund. If you qualify (filed your taxes, ect ect) you%26#039;ll receive it separately, probably in May or June.

Tax rebate 2008 question?

The tax rebate is due to the fact that the tax rate for the fist 6,000 you earn in 2008 has been reduced from 10% to 0%.

The government passed the law to cut the tax rate and issue the rebate of the taxes already paid early in the hopes that people would get money and spend which they hope will boost the economy and keep us out of a recession.

Your 2008 tax return would not have included this rebate amount had the tax rate not been cut. When you file your 2008 return next year the return will be caluated with the 0% tax rate. The amount of refund you received early (say the 600.00) will be deducted from your refund and your refund would be the same as if the tax cut was not passed and you didn%26#039;t recieve the rebate. The good news is if for some reason your refund is less than the rebate you received you do not have to pay back the money.

Hope this explains things for you.

Using your example if you refund would have been 900 next year without the tax cut you still get your 900. Where people are confused is if your refund would have been 900 next year without the rebate it would be 1,500 with the tax cut and the rebate amount will be deducted and you still get your 900 it would have been.