Toledo Talk - Tax Rebates *huh*

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Tax Rebates *huh*

I've heard a lot of different things about the tax rebates this year. Anyone know what's really going on?
Some say it's extra money, others say it's a loan that must be paid back.

Say I expect a $600 refund, and they are giving out $500 "rebates" Does that mean my check will be $1100?
Or I'll get $500 right now, and a couple months $100.

Or in the case you expect nothing, you will get $500, but have to pay back $500 in April?

Very confusing.

If you have to "pay it back" can you just decline it?

created by jshriver on Jan 25, 2008 at 02:01:45 pm
updated by jshriver on Jan 25, 2008 at 02:02:18 pm Comments: 15

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where are hearing that you have to pay it back? maybe what they mean is.. the gov needs the money.. so if they give it to us now, it just means a tax hike in the future to make up for it?

posted by upso on Jan 25, 2008 at 02:25:08 pm     #

My understanding is..we will receive the rebate somtime in the spring. It's not connected to your irs refund it is a separate check. However we will have to report it as income on our 2008 Taxes.

posted by Eastsider on Jan 25, 2008 at 03:40:59 pm     #

Like the last "rabate", there will be a place on your 2008 tax return to show that you received it. It will go against that years tax return.
Personally, I wish they wouldnt do it. I'd rather have the larger check next year.

posted by swantucky on Jan 25, 2008 at 07:00:23 pm     #

So I get a $600.00 rebate of my own money which I gave to the Government in the way of taxes. Then, next year I have to claim my own $600.00 as 'other income" thus raising my AGI and increasing my 2008 tax liability. Meanwhile, those persons who claim they are getting the short end because they are only going to get $300.00 but do not have to file withthe IRS due to income limits will not have to declare anything. So who really makes out better in this deal? I do not think it is me.

posted by KraZyKat on Jan 25, 2008 at 08:14:37 pm     #

It is a great strategy to pass on complete economic failure to the next administration, the next political party too perhaps. More debt for our childrens backs to bear. I'm just glad that they don't let these crooked financial criminals be prosecuted and have their assets seized. With my check I'm going to invest in an embryonic stem cell company. What a great way to circumvent the bush.

posted by prime3end on Jan 25, 2008 at 08:32:25 pm     #

Checks go out in May. You don't pay it back. (For pratical purposes lets keep it simple here and not get into the national debt discussion.) If you earn 75,000 or less you get $600. For married couples the joint earnings threshold for the maximum of a $1,200 check is $150,000. Even those who work but do not pay income taxes get at least $300.00.

posted by holland on Jan 25, 2008 at 08:34:59 pm     #

It's funny how the tax "rebate" goes to millions of people who don't even pay taxes and leaves out millions of people that pay the largest share of the tax.

posted by HeyHey on Jan 25, 2008 at 10:20:50 pm     #

Unless they've changed something,,,

It wont be included as income next year. It will go on page two of your 1040 as the last one did. So if your refund for tax year 2008 is 2000.00 and you received 1200.00 in a rebate check, your refund will be reduced by that amount. Leaving you and 800.00 refund.

posted by swantucky on Jan 25, 2008 at 10:24:41 pm     #

This rebate is great for cigarette companies and the state lottery. 600$ will buy untaxed slackers a whole cart full of scratch offs and no-name ciggys.

Our hard-earned money at work.

posted by JJFad on Jan 25, 2008 at 11:01:09 pm     #

WTF?? What the hell does this have to do with smokers?? I guess rabid smoker-hating knows no bounds, so guess I shouldn't be surprised it was thrown into the fray.

posted by Darkseid on Jan 26, 2008 at 04:05:25 am     #

These rebates are really strange. Where are they getting the money to pay for it? Is it really needed? The 5% unemployment is still lower than the hay days of the 90s.

posted by chrismyers on Jan 26, 2008 at 05:09:30 am     #

Any money the government has was ours originally anyway, as a rule. That doesn't mean this is a good idea..

posted by Darkseid on Jan 26, 2008 at 08:29:30 am     #

COSI fans can donate all or part of their rebate to resurrecting the hands-on science museum.

posted by jr on Jan 26, 2008 at 08:35:14 am     #

Tax refunds and this tax rebate have nothing to do with each other.

Tax refunds happen when you pay too much along the year, typically because income tax is being withheld from your paycheck. Inevitably they will take too much money out because they don't take into account charitable donations, child tax credits, tax-deductible retirement contributions, etc. Once those things are taken into account you're taxable income will drop and so will the amount owed to the government. The tax "refund" is nothing more than a no-interest loan that you have just given the government.

Tax rebates, on the other hand, is the government returning a portion of the money legally owed to the IRS. Therefore, it is not income. The government is essentially lowering the tax rate for this year for those making less than $150,000.

Ironically, despite the definition of a tax rebate, people who paid no income tax at all can qualify for this tax "rebate."

posted by HeyHey on Jan 26, 2008 at 11:47:57 am     #

Sorry, been offline for a few days. Computer freaked out had to get a new one.
Here's my ?.
Not having correct figures just examples. Say for instance..the EIC credit is topped out at $34,00 for a working family of four. This family makes $33,00 in 08. Yet they receive $1800.00 in a tax rebate.
$1200.00 for a couple and $300.00 per child.
This rebate would have to be included as income, therefore this family tech has made $34,800.
So not only have they entered a new tax bracket, they have exceeded the EIC threshold. So the IRS now doesn't have to give them the EIC and their taxes are slightly higher. So the government makes out on working family's. All in the name of Tax Rebates. I think we will be in more trouble next year. Am I wrong? Please explain it to me if I am.

posted by Eastsider on Jan 28, 2008 at 12:36:40 am     #