Tax Rebate??
Is this year's tax rebate an actual rebate? According to CNN.com, they are proverb it will come out of next year's settlement? Anyone have any insight to this?Answers: While the rebate depends on your 2007 income, it is in fact a rebate toward your 2008 taxes. According to the proposed plan, in 2008, taxes would be cut from 10 percent to nil percent on the first $6,000 dollars of taxable income for individual taxpayers.
It's like a one time export tax cut for 2008, but you get the rebate presently instead of waiting to file your 2008 taxes. Because this is an finance payment on your 2008 taxes, your settlement next year could be more (or smaller number!) depending on your 2008 income.
What CNN is saying is features of correct. When you do your taxes next year you will own to claim the tax rebate as income which you will enjoy taxes on so if you normally settle up in you will be paying surrounded by more if you usually get a compensation then it will be smaller quantity.
Stimulate the reduction levy rebate or mortgage?
I just read that the proposed rates rebate $600 single, 1200 couple and +300 per child is a advance on subsequent years tax settlement. So in 2009 when you directory taxes you have to cart off that amount from your return or pay it stern to the government as a tariff. So don't get adjectives excitted about getting a 6 month mortgage on your money.Answers: Under the compromise bill passed by the Congress, you would be eligible to receive a rebate of up to $600 if you paid that much contained by Federal Income Tax. If you only remunerated $350 in taxes (less than the $600 rebate limit), you lone get backbone $350. If you had earn income of at least $3000, you would procure at least the minimum rebate of $300.
While the rebate depends on your 2007 income, it is in reality a rebate toward your 2008 taxes. According to the proposed plan, in 2008, taxes would be cut from 10 percent to zilch percent on the first $6,000 dollars of taxable income for individual taxpayers.
It's like a one time charge cut for 2008, but you get the rebate immediately instead of waiting to file your 2008 taxes. Because this is an finance payment on your 2008 taxes, your return next year could be more (or smaller amount!) depending on your 2008 income.
But where did you read that? I don't have an idea that that's true, You need to quote a source.
The entity thats got me steamed in the region of the rebate is that I used the IRS calculator and it said I do not qualify for the EITC (Earned Income Tax Rebate) because I make over 12,500/yr. Check it out on the irs website. (had to break up the address because it get cut off the first time)
http://apps.irs.gov
/app/eitc2007/SetLanguage.
do?lang=en
From what I remember contained by 2001, the way the rebate worked be the following:
The government cut us adjectives checks for something around $500. At the end of the year, $500 be deducted from our refund.
Therefore, you'd say "See! Not free money! Right!?"
Wrong.
What really happen was that we be NOT taxed on the first few thousand or so dollars we earn in 2001. The establishment cut us the check early, instead of waiting a adjectives year.
This is what is happening this year. We are not paying taxes on the first $10000 or so. If we did NOT achieve a rebate check, we would see an extra $600 or $1200 in our return check in 2009. But instead, we are mortal advanced this "tax cut" money immediately, in hopes that we spend it on American-made produce.
See it however you want, but if your filing status, income, or other excise deductions don't fine-tuning from tax years' 2007 to 2008, you won't see much of a make over in your return, even with the due rebate check.
See the source below. The writer is misinformed about the disposition of the rebate, but does state that:
"To produce this cash, Congress created a one-time charge credit to reduce taxable income for most taxpayers this year."
Will the stimulus rebate be based on Adjusted Gross or Taxable Income?
Answers: The rebate depends on your 2007 earned income and taxes. The phaseout provision depends on the AGI.
Under the compromise bill passed by the Congress, you would be eligible to receive a rebate of up to $600 if you paid that much in Federal Income Tax. If you only paid $350 in taxes (less than the $600 rebate limit), you only get back $350. If you had earned income of at least $3000, you would get at least the minimum rebate of $300.
While the rebate depends on your 2007 income, it is actually a rebate toward your 2008 taxes. According to the proposed plan, 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.
Use the calculator below to compute your rebate.
True, it is AGI. And, also true, the IRS doesn't care about deductions and credits when it comes to figuring out the amount of the rebate.
But, since it is based on the AGI, it does take into account "adjustments to income" such as the IRA deduction, health savings account deduction, student loan interest deduction, tuition and fees deduction, etc. (lines 23 - 35 of the 1040 Form). So, a person who might be leaning toward contrubiting to an IRA but, had concerns about where the money would come from to fund it, might now consider taking advantage of this tax rebate and contributing to an IRA -- knowing full well that it will be paid for by the tax rebate.