Is it true the stimulus package is just our 2008 taxes paid early?
Where is the funds 4 stimulus package coming from? Is it true It's not really "free" money and it's just them giving us what would have been our 2008 taxes back early?
Posted in stimulus package
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May 18th, 2009 at 3:46 pm
It's sort of true, but don't worry about it.
The rebate will not effect your 2008 federal tax liability or refund. The law says the IRS can't recover any extra rebate payment by reducing your 2008 refund or adding to your 2008 tax bill.
The "rebate" is an advance credit against your 2008 tax return (which will be filed in 2009). However, it is calculated based on the amounts shown on your 2007 return. When you file your 2008 return, the IRS will recalculate your "rebate" based on the 2008 amounts. If this results in a larger "rebate", you will receive a check for the difference. If this results in a smaller rebate, you will not have to repay the difference.
The "rebate" will not increase or decrease any tax refund to which you are entitled. It is an additional refund.
May 18th, 2009 at 3:46 pm
Slap whoever you heard that from.
May 18th, 2009 at 3:46 pm
No that's not true. CNN originally reported that, but they revoked their statemnt a few days later. It is not an advance.
May 18th, 2009 at 3:46 pm
I believe it is for taxes you are paying from 2007. I tell you that if you do not file, you will not get it. Plus, nothing is free, they will get it back ").
May 18th, 2009 at 3:46 pm
Not exactly true, but you will have to report it on next year's return - it's an advance payment on a tax cut that will be in effect next year - if you get the rebate now, you won't benefit from the tax cut next year because you will have already gotten the extra money. But your refund for next year will be the same as it would have been if there had been no 2008 tax cut and no rebate.