What effect will the tax rebates have on my 2008 tax refund?-Is this an advance on next years?
Answers: The rebate is an advance on your 2008 taxes.
According to the bill, in 2008, taxes will 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.
But it will not effect your refund.
One thing taxpayers won't have to worry about is giving back any excess if their 2008 taxes show that the advance this year was actually more than they should have received.
"If it turns out that credit on your 2008 return is greater, you get to take that additional amount," says Luscombe. "If it's lesser than what you got in 2007, you don't have to refund that back to government." The law says the IRS can't recover the extra payment by reducing your 2008 refund or adding to your 2008 tax bill.
From the CNN news article on this subject:
Do I have to pay the rebate back?
No. And here's why.
Your rebate is a one-time tax cut - an advance on a credit you'll receive on your 2008 return.
It's based on your 2007 income initially. If it turns out that your 2008 income and number of children would have qualified you for a larger rebate than the one you received, you'll be sent the difference. If it turns out your 2008 income was lower than in 2007 and you should have gotten a lower rebate, you get to keep the difference.
"If you were supposed to receive a larger payment than you did, you will get the extra money," said Treasury spokesman Andrew DeSouza. "If you received more than what you should have gotten, you will not be penalized."
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. The two should balance out - the tax cut against the rebate you already received.
Rebate checks: The last time this happened, it was deducted from our tax returns. It is the same scam?
Answers: 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.
they are giving you your 2008 money.
its in result of a 2008 tax cut, so you would have actually had seen that money in 2009 for your 2008 return (if you had one), but, now you will pretty much stay the same as you did in 2007 as long as you dont get a huge raise or adjust your dependents or anything. so, by the time 2010 comes and that extra money you would have seen for you 2009 refund will probably be nonexistant because the democrats are comming
many people are stating that yes u will have to pay uncle SAM if u receive a check and then cash it.they also tell you that u can use it how ever u like.several people i know has sent the check back.two of my friends have ripped it up.
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.
In 2001, the government reduced the 15% tax bracket to 10% and sent the money out early. Then when you did your taxes, you filled out a worksheet that calculated the difference between the old and new tax rates for the income you ACTUALLY had in 2008. You then subtracted out the advance check you received. if the amount remaining was negative, you didn't do anything (as you'd already gotten that part of your refund the year before). If the amount was positive (meaning you deserved more than you'd gotten in the advance check), you got a credit to reduce the 2001 taxes by that amount. The worksheet for the stimulus will work the same way.
The problem was, the software packages! After you entered your W-2 info, the software promptly claimed you would get, say, $1600 in refund. Then it asked you if you'd gotten the advance check and if you said yes, dropped the refund by that amount. This convinced people that they were paying it back and built up a lot of animosity.
If you'd rather *not* get the rebate, simple take the check, cash it and send it back into the IRS. Label the new check with "2008 1040 ES payment" and it will be added to your refund in 2008. (You will be making an interest free loan to the government.)
How oodles import tax payers are in that contained by the US? Need intermingle please?
i know there are 308 million ancestors.. but that includes decrepit and children.. how heaps working people are at hand? I cant find anything in the Census..Thanks!
Answers: For rates year 2005, 134,372,678 individual tax returns be filed. Of those file, 99,880,223 actually have a tax liability and in fact paid taxes.
308 million associates. One way or another.