Econ. stimulus tax rebate (Update: Payments began week of 4/28) - Some TurboTax clients missed?

[jaybird2001wi]

I am not sure if this has been asked or answered yet, but I am a bit confused. I am a single person with no dependents or children and currently live with the parents. I know married couples will be getting $1,200 (600 for each person?) but my Mom told me I will get a $600 check and my Dad said I will get $300. I make about 22,000 a year and am wondering and always put down "0" in both the state and federal W2 forms. What check will I get? 300? 600?

[JJHardy7]

Do your parents claim you on their tax return?

[MJLiverock]

I would guess $600 unless your parents claim you as a dependent. I think the $300 is the number people can get per dependent child.

[jaybird2001wi]

No, my parents don't claim me on their taxes. I haven't been declared as a dependent on my parents' taxes in like five years.

[JJHardy7]

You should be getting $600 then. My wife and I actually got something in the mail a week or two ago about the tax rebate. It just states that we may be eligible for one. Has anyone else got these? I guess it's costing about $40 million to send those out so hopefully people are getting them. Below is a good reference point for the rebate. And just to clarify from what I've read and seen it doesn't look like this is a short term loan. The 2008 tax returns include a new line that will show the amount of the rebate as income, but then a new credit that backs it out. So essentially it is non-taxable money and not an early payment of a 2008 refund.

 

 

http://money.cnn.com/2008/03/17/pf/taxes/rebates_payment_schedule/index.htm?postversion=2008031716

[Katuluu]

Those (the notice of a potential rebate) are sent out once you file your taxes. I got mine about a month ago.

[BMuch]

Those (the notice of a potential rebate) are sent out once you file your taxes. I got mine about a month ago.

 

The notices went out even if you have not yet filed your tax return.

 

Jaybird appears to be in line for $600.

 

$300 is for dependents and those individuals who pay no (or very little) income tax.

[DuWayne Steurer]

Here's another question then.

 

I'm hearing (and this could very well be wrong of course) that this rebate is simply an advance on next year's tax return, and that we'll be getting that much less in our 2009 return.

[JJHardy7]

I'm hearing (and this could very well be wrong of course) that this rebate is simply an advance on next year's tax return, and that we'll be getting that much less in our 2009 return.

 

Are you referring to the actual 2008 return that is filed in 2009? Or the 2009 return that is filed in 2010?

[DuWayne Steurer]

The 08 return that we'll get back in 09

[PeaveyFury]

I'm hearing (and this could very well be wrong of course) that this rebate is simply an advance on next year's tax return

 

I'm nearly certain that isn't the case. It will simply be additional income in 08, I believe.

[jwill535]

all States have to pass a special law that this will not be taxed, essentially its tax free money.

[SZBrewerFan]

This is not an advance on any future tax returns. This is a one time stimulas. It will have no bearing on your tax return for 2008 or beyond.

It will deflate the dollar thus imposing an indirect tax (inflation) but that is another topic for an entire different discussion.

[JJHardy7]

The 08 return that we'll get back in 09

 

I think I mentioned it in my previous post. The 2008 return is going to include additional lines on it for the stimulus income, but once the tax is computed there will be a credit that backs out the exact amount -- so it is not a tax advance. I know there were a lot of reports circulating before it was finalized that it would be taxed or reduce/increase a refund/expense, but it's not the case. It is "free" money.

[endaround]

Its getting confused with the previous rebate which was just an advance on future refunds

[Chio151]

So, we were thinking of going to Iceland with our check... I'm guessing Bush didn't think we'd be stimulating Iceland's economy. They seem like a good ally though... http://forum.brewerfan.net/images/smilies/smile.gif

[samwise]

http://www.irs.gov/app/espc/

 

A calculator to figure out your rebate.

[olliegjw]

Its getting confused with the previous rebate which was just an advance on future refunds

Actually, the previous rebate was not an advance on future refunds. It had to be included in taxable income, so the value was reduced. However, it wasn't a 100% reduction, just at your marginal tax rate (about 25-30% for most).

[NeedMoreFans]

I wish they would put it in plain terms...

 

Married or single?

Did you get a refund or did you owe money?

If you make under X amount, you get this much...over X amount, this much.

 

It would be so much easier to understand than "tax liability" and such.

 

So, I'm married, filed married, got a refund, make under $75,000 (or is it $150,000 because I'm married?)...

 

Do I expect $600, or $1200? I think it's $600 because I got a refund.

[whizkid]

Whether you got a refund or not has nothing to do with it. I suspect you'll get $1200. The calculator link Samwise posted above is quite easy to use.

[JJHardy7]

Do I expect $600, or $1200? I think it's $600 because I got a refund.

 

You will get $1200. If your total income between your spouse and yourself is over $150k, you would receive less.

[Diskono]

This is not an advance on any future tax returns. This is a one time stimulas. It will have no bearing on your tax return for 2008 or beyond.

It will deflate the dollar thus imposing an indirect tax (inflation) but that is another topic for an entire different discussion.

 

I could have sworn that I saw on irs.gov a few months ago that it was an advance on next year's return. However, when I checked that same page a few days ago, it didn't say that anymore.

 

What I want to know now is whether or not we'll get $1200 or $1500. We just had a baby in 2008. Either way, I plan on exchanging it all for Euros.

[bullox]

So, we were thinking of going to Iceland with our check... I'm guessing Bush didn't think we'd be stimulating Iceland's economy. They seem like

a good ally though... http://forum.brewerfan.net/images/smilies/smile.gif

 

 

I imagine that you are going to pay an American airline somewhere along the way. Possibly buy new luggage or clothing for the trip.

[JJHardy7]

What I want to know now is whether or not we'll get $1200 or $1500. We just had a baby in 2008. Either way, I plan on exchanging it all for Euros.

 

You should be getting $1500. From the latest I've read the $300 doesn't have a limit on per kids (it was reported that 3 was the limit earlier) and it is available to all kids born in 2008. I'm guessing if the child is born after the 2007 tax return there is a separate form you'll have to fill out. The joke at work has been (prior to March) that if you want to have a kid 2008 is a good year because you'll get "paid" to have a child.

[whizkid]

This is from Kiplinger.com:

 

I had a baby in August 2007. Will I still get the full $300 bonus rebate?

Yes. As long as the baby was born by December 31, 2007, then she counts as a qualifying child for the extra $300 (if you otherwise qualify for the rebate). Parents of babies born in 2008 will have to wait until next year to claim the $300 credit.