Tax Rebate/Economic stimulus

[Darky]

Who here knows about this? I'm starting to hear about it being an advance on next year's tax return. If this is the case, well, its kinda retarded thn, and hopefully they get the word out. Let's say my family gets $1800 out of this, but this year I get a higher paying job and am not eligible for the huge tax refund anymore. Now my return would come out to, say, $1000. Do I now owe the gov't the extra $800 I received in the stimulus package? This is starting to look like less of a cool thing than I thought. However, on the plus side, its getting mailed out based on the last 2 numbers of your SSN. Mine are pretty low, I'd be in the first group...

 

[BruceB83]

Yes...this is an "advance" on your 2008 tax return. It's NOT free money. Here is the official bulletin I received from the IRS this morning on disbursement. If you processed your 2007 return by direct deposit, look under "Direct Deposit Payments"...and so on for paper check. People who used direct deposit will get their "rebate" first.

Stimulus Payment Schedule for Tax Returns
Received and Processed by April 15
​

Direct Deposit Payments
If the last two digits of your Social Security number are:
Your economic stimulus payment deposit should be sent to your bank account by:
00 – 20 May 2
21 – 75 May 9
76 – 99 May 16
Paper Check
If the last two digits of your Social Security number are:
Your check should be in the mail by:
00 – 09 May 16
10 – 18 May 23
19 – 25 May 30
26 – 38 June 6
39 – 51 June 13
52 – 63 June 20
64 – 75 June 27
76 – 87 July 4
88 – 99 July 11

A small percentage of tax returns will require additional time to process and to compute a stimulus payment amount. For these returns, stimulus payments may not be issued in accordance with the schedule above, even if the tax return was processed by April 15.
All or part of an economic stimulus payment may be applied to back taxes or certain other debts of the taxpayer, such as delinquent child support and student loans. In such cases, the IRS will send a letter to the taxpayer explaining the offset.
To accommodate people whose tax returns are processed after April 15, the IRS will continue sending weekly payments. People who file tax returns after April 15 and receive a refund can expect to receive their economic stimulus payments in about two weeks after receiving their tax refunds, but not before the date they would have received their payment if the return had been processed by April 15. To ensure taxpayers receive their stimulus payment this year, they must file a tax return by Oct. 15.
Two bureaus of the Treasury Department are involved in making the payments. The IRS will calculate the amount of each economic stimulus payment based on the tax year 2007 income tax returns it receives. The IRS will then forward the information to the Financial Management Service (FMS), which is the bureau of the Treasury Department that makes federal payments such as Social Security benefits, federal income tax refunds and, now, economic stimulus payments.
The IRS reminds taxpayers that they can get their stimulus payments faster by using direct deposit when they file their tax return.

 

[Darky]

Well that sucks. I wonder if its possible to reject it. But then it would still be handy for me with a couple things I need to get done.

 

[BruceB83]

It is retarded, you're right. Their logic is basically to get the money back into the hands of society sooner so they will spend it now since they want to boost the economy. It's basically a loan on the money we are already loaning them throughout the year.

For people like me, who calculate their taxes so I come within about $200 over or under at year end, shouldn't spend this money. I'm just going to have to give it back since I don't get returns in excess of $1200 (married filling jointly).

 

[BruceB83]

Well that sucks. I wonder if its possible to reject it. But then it would still be handy for me with a couple things I need to get done.

You could stick it into a high yield savings until next year. Although the "high yield savings" accounts are not so high-yielding anymore since rates keep getting cut.

 

[H8PVMT]

the last I read they changed it so that it will not affect your 2008 return, I'll try to find the link but I've been watching this thing like a hawk

 

[XJ&CHZ4ME]

You could stick it into a high yield savings until next year. Although the "high yield savings" accounts are not so high-yielding anymore since rates keep getting cut.

Ahh, spoken like a true accountant. I am with ya on this Bruce, I am just going to do a short term investment until next year....what are these high-yield's your refering to...I hear that high yield is kind of in the same category as Sasquatch now a days

 

[Lowrange2]

That's retarded! What are the guidlines that they go by to decide how much you get? I've heard several things..

 

[Darky]

Since I can't post in the non-tech/off topic forum, I thought I'd share this taken directly from irs.gov.

Q. Is my stimulus payment taxable?

A. No. You will not owe tax on your payment when you file your 2008 federal income tax return. But you should keep a copy of the IRS letter you receive later this year listing the amount of your payment. In the event you do not qualify for the full amount this year but you do next year, you will need to have the letter as a record of the amount you previously received.

Q. Will the payment I receive in 2008 reduce my 2008 refund or increase the amount I owe for 2008?

A. No, the stimulus payment will not reduce your refund or increase the amount you owe when you file your 2008 return.

Not in red so he couldn't post but sent it to me back-channel. I'm hopin for this, and its lookin possibly good since H8PVMT had heard similar

 

[XJumpmaster]

The mailing I got from the IRS did not say anything about it affecting 2008 tax returns. Not even in the fine print. Please post a link. Nevermind, just read the post from timber.

 

[jeepboy381]

What a rip off, I knew the money was coming but I never heard it was basically a loan on next years tax return. That is total BS and a waste of time.

I live in Oregon and they also cut us a check to help stimulate the economy, it was really nice! Then a month or two later tax time comes and I end up owing the state $40.00? Usually I get back around $200 from the state and I was in the same tax bracket as I was the previous year. I wounder where they got that money from?

 

[BruceB83]

Ahh, spoken like a true accountant. I am with ya on this Bruce, I am just going to do a short term investment until next year....what are these high-yield's your refering to...I hear that high yield is kind of in the same category as Sasquatch now a days

Lol...and what makes you think I'm an "accountant"...:eyes:. Ok, I may do some "accounting" work...but I'm a financial analyst. Hopefully soon-to-be property analyst at that.

Anywho...just go to bankrate.com, well go here http://www.bankrate.com/brm/rate/mmmf_highratehome.asp?params=US,416&product=33

Also check with banks such as Washington Mutual. They still have an online savings account in the high 3% range. That is who mine's with. Unfortunately most of them are down below 4% now thanks to the Fed continuing to cut rates. I'm still locked in at 6% which is great for a "savings" account. Thats what I keep "short-term"/emergency cash in. No point in locking it into a CD for the same interest rate.

 

[BruceB83]

Timber is right...that came from the FAQ's on the IRS page about the rebate checks. They must have recently changed that because it was originally going to be an "advance". It must have changed while in the Senate. Here is a link to the FAQ section...http://www.irs.gov/newsroom/article/0,,id=179181,00.html

And link to the main page...http://www.irs.gov/irs/article/0,,id=177937,00.html

 

[BruceB83]

What's major BS is all the people who will be getting this rebate who have not paid any taxes in 2007...such as a friend of mine who's total tax payments for 2007 were only $1,300 and he received a tax refund of $3,800....it's not bad enough that he got his $1,300 back and then an additional $3,800 but now he's getting $1500 for him, wife, and child. That is complete BS.

Also, its kind of sad but this is a true statement. Most of the people who are in these "credit crunches" right now are there at fault of their own. When they hear about this check they go out and spend money on their credit cards telling themselves they will pay it off when the check comes. Well, when that check comes in, do you think they will pay it off? Nope. They will continue to bury themselves in a deeper cash crunch than before, basically making the situation worse. Smart move government....real smart move. :sure: :twak:

 

[Boatwrench]

I will use my stimulus check to stimulate the economy, not put into any investment.

I probably will not purchase any goods, partly due to that fact most goods are manufactured overseas and the economy I want stimulated is right here in the US. If I do purchase goods it will be locally produced or from a manufacturer that I know produces goods here in the US.

I will purchase services, specifically paying for my lodging in Moab and visiting a couple of the local eateries.

The run on the investment place last week scared me, I work in a pretty recession proof occupation, but don't want our economy to tank anymore than it already has.

 

[HaleYes]

Did we ever figure this out? Where is this economic stimulus check money coming from? Per IRS website: It is not an advance on our 2008 return. Correct?

 

[H8PVMT]

it's free and clear, just got a letter today and it said I do not have to claim it on next years return

 

[DrMoab]

Yep, heard this a few months ago. Its all yours.

Now they are talking about doing another one to.

 

[HaleYes]

Good deal. I was sure I'd read that it was an advance on 08'. The guys are work thought I was on crack. I'm glad to hear otherwise though.:thumbup:

 

[97XJ Jeeper]

I was supose to get mine May 9th, still nothing.