taxreff
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There will be no pay backs, nor will the money be taxed on your 2008 return.
Prebate checks will, however, have to be subtracted from the results of your 2008 return. That is not a payback, it is to prevent a double payment.
To illustrate, the new tax bill raised the Child Tax Credit (CTC) for 2008 to $1,300 from $1K. Those getting a prebate check will get the extra $300 this year. That is where the $300 per child comes from.
On your 2008 1040 you will be awarded a CTC of $1,300. Since you already received $300 in advance, you have to subtract that $300. That will still leave you with a total $1,300 CTC for 2008. If you did not subtract the advance payment, you would incorrectly wind up with a 2008 CTC of $1,600 ($300 prebate plus $1,300 on the 2008 1040).
Those who did not get an advance check will not have to subtract it, so they will receive the entire $1,300 at that time. |
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Richard M
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While the rebate depends on your 2007 income, it is actually a rebate toward your 2008 taxes. According to the bill, in 2008, taxes would be cut from 10 percent to zero percent on the first $6,000 dollars of taxable income for individual taxpayers.
It's like a one time tax cut for 2008, but you get the rebate now instead of waiting to file your 2008 taxes. Because this is an advance payment on your 2008 taxes, your refund next year could be more (or less!) depending on your 2008 income.
For the rebates based on taxable income ($600 for singles, $1200 for joint filers), the rebate will about equal the tax cut, so your refund next year will not be effected.
Of particular concern are the $300 rebates to those who pay no tax and the $300 rebates for dependent children. Those who receive these rebates may wind up paying it back next year. |
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Judy1
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Sort of. For 2008 there will be a tax cut - the rebate is an advanced payment of that. If you get the rebate now, you won't get extra money next year from the tax cut. It hasn't been announced yet exactly how that will all be implemented |
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pliskin_snake
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Check out http://money.cnn.com/2008/02/08/pf/taxes/rebates_what_you_need_to_know/index.htm?cnn=yes
for all the answers you need to know.
1. it's for 2008 just in 2007.
2. You won't have to pay it back.
3. It looks like children born this year will get an additional 300 next year. |
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CarVolunteer
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It is a one time tax reduction, with the savings distributed early. You will calculate what your rebate "should have been" when you file your 2008 taxes in 2009.
For most people, that answer will be the same as what they received, so it would have no effect on their refund.
For some people, that answer will be more than what they received. They will have the difference added to their refund (or deducted from what they owe).
For some people, that answer will be less than what they received. They get to keep the difference, according to the news articles I have read. |
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Vince
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no |
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CranialEntropy
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Uh, it's a rebate.... not a bill. |
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Angela M
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Id love an actual answer for this!!! On the news last night the news caster said "And remember, this rebate will be coming out of your 2008 tax return, so expect your return next year to be significantly smaller"...kinda pissed.
But im not sure, cause me and my boyfriend couldnt find out anything alse about it online... |
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Lo C
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you will not have to pay back this money nor will you be taxed on it!! |
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rockyfella25
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no its to try to help the economy |
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Megabeth
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jesus i didnt even think about that.
im sure it will count as income and then next year we will have to claim it.
Lord. |
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â™ pita â™
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as always, either the IRS or State agency will require you to claim it as income next year. |
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**hope/faith**1744
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As far as I have heard and read on the irs website, no we are not required to pay it back, although we will be taxed on this money on our 2008 tax returns, as it is technically income. |
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diamonddude1234
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im so confused about this. some people say this is an advance on your taxes next year, other people say that it's just straight money. i dont know. a few years ago when the same thing happened it was taken out of you next years taxes. so no you wont have to pay it back but it's going to come from somewhere. |
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Some Dude that likes beer & porn
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Yes. You will have to claim it as income on your 2008 taxes. |
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southarkansas
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no-but you will required to claim it as income on next years tax returns |
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Pat
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Mark my words, it will some way be calculated into next years tax filings as either earned income or they will change other laws around to get their money back. |
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badkat423
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of course we will....and our children and grandchildren and great grandchildren will have to pay back the huge debt that this rebate will create... along with the huge debt of the war etc..
Gee thanks Georgie! |
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