<removeps-groups[at]yahoo.com> wrote:

- quote -

You understand, although I'd use different words. The "rebate" is a
refundable credit on your 2008 taxes. "Refundable" means you get it even if
it reduces your tax below zero.

The checks to be sent out in 2008 are an estimation, based on your 2007
return, of what your 2008 credit will be.

- quote -

Change "might" to "will," and you got it.

- quote -

That is correct. When you file your 2008 return in 2009 the credit applies
to your return. It is reduced by the amount of the advance check you got,
BUT NOT BELOW ZERO. That means you keep the change.

--
Phil Marti
Clarksburg, MD

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

On Feb 9, 9:34*pm, cpabake...[at]yahoo.com wrote:

- quote -

The bill has finally passed both branches of congress, and signed by
the president.

See http://thomas.loc.gov/cgi-bin/bdquery/z?d110:h.r.5140:
Click Text of Legislation
Click [H.R.5140.ENR]

Seems the rebate amount will be determined by the 2008 taxable year,
but they will use the 2007 tax return to determine how much of a
rebate check to send to you this year in May -- well, this is my
reading of section g1, but the language is too cryptic for me to
understand fully. So if your 2007 income is too high you might get
nothing in May, but if your 2008 income is low you could get a credit
on the 2008 return which you file in 2009. Is that right? If your
2007 income is low enough you might get something, but if your 2008
income is too high then what? The URL referenced above says you get
to keep the rebate.

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

On Feb 8, 12:50*pm, frenchy <mf101...[at]msn.com> wrote:
- quote -


Milt Baker CPA
Michigan

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

"frenchy" wrote:

- quote -

Door number 3.

It's a refundable credit toward 2008 taxes. In effect it reduces your 2008
tax liability by the rebate amount, and if the rebate winds up being more
than your 2008 tax, you get to keep the change.

You ignore the rebate through the year. Don't adjust your withholding or
estimated tax payments, and you'll wind up with about the same
refund/balance due when you file your 2008 return as you would have without
the rebate. Of course, you will have had the rebate check previously.

If you wind up not getting a rebate check you'll get the credit when you
file your 2008 return.

--
Phil Marti
Clarksburg, MD

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

"frenchy" <mf101723[at]msn.com> wrote
- quote -




Federal tax refunds are not taxable income on federal returns. Although
Congress could change it for this rebate.

Other than that, remember that this gimmick ~has~ to be paid for by someone
at some time. They aren't overflowing with money in DC, so this'll just add
to the deficit (ie: money collected being less than money spent). If not
paid for directly on the 2008 tax returns in some manner, expect increasing
taxes (increase in tax rates, decrease in deductions/exemptions, or both) in
the future years.

Ya can't have it all and have others pay for it all.

So that old commercial saying "You can pay me now, or you can pay me later"
applies here - you're going to pay later for what you get today.






--
Paul A. Thomas, CPA
Athens, Georgia

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

I've read conflicting stories on the rebates, one said I will have to
pay the entire rebate of $600 back in reduced tax refund or an actual
increase in my taxes by the whole amount, on my 09 return (MSN money
article) - another said I will only have to pay TAX on the $600 as it
would increase my income by that amount. What's the correct answer?
Thanks!

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >