For people in the US - this $600 tax credit that is coming is a farce!!!

[SUBMAN1]

Consider it just an advanced payment towards your 2008 tax return! :down: What a load of rubbish!!!

-S

YOUR TAXES

Tax Rebate Defined

You may be wondering if this tax rebate will affect your 2008 federal return next year.


Let us try to answer this question for you. The tax rebate is an advance credit for 2008 and will be calculated on your 2008 return. Now this is important: you are receiving a portion of your 2008 credit EARLY and if you receive it once, you won't receive it again when you file your 2008 return.

And, this is important too: if you're due a higher tax rebate, you'll get the remainder next year when you file. If you received a higher rebate than you should have, you DO NOT have to pay it back. So far, so good.


A tax rebate is not interest, it's not income, it's not a dividend. Pure and simple, and this is worth saying again, the tax rebate payment is an ADVANCE CREDIT for tax year 2008 and will be calculated on your 2008 return when you file in 2009.


So for now, all you have to do is think about whether you will save it, pay down bills or splurge (http://www.subsim.com/radioroom/../yourmoney/saveorsplurge.php) on something you've always wanted.
http://digits.hrblock.com/newsletter/yourtaxes/2008return.php

[bradclark1]

Doesn't matter, it will go towards paying bills so I'll still be saving (kind of).

[STEED]

If you don't want it SUBMAN1 send it my way, I could do with that to pay off some of my bills. ;)

[SUBMAN1]

If you don't want it SUBMAN1 send it my way, I could do with that to pay off some of my bills. ;)Thats the point - it is already mine. I already paid for it. It's not the free money it was made out to be. It's just a lot of political mumbo jumbo to make it look like the Gov is doing something again when they really aren't.

-S

[STEED]

If you don't want it SUBMAN1 send it my way, I could do with that to pay off some of my bills. ;)Thats the point - it is already mine. I already paid for it. It's not the free money it was made out to be. It's just a lot of political mumbo jumbo to make it look like the Gov is doing something again when they really aren't.

-S

Same here, our government has no money it's ours from all those taxes we pay. And I'm fed up of them wasting my money on silly new ideas.

[Jimbuna]

Can't be any worse than our Governments recent suicidal blunder.

They just dropped the 10% tax rate to the lowest earners in the country who don't have young children.

Nothing like a bit of sexual discrimination against those females in our society who are experiencing fertility issues. :nope:

[mookiemookie]

Um...the IRS diagrees:

What is it? It's an economic stimulus payment that more than 130 million households will receive starting in May. It's not taxable, and it won't reduce your 2007 or 2008 refund or increase the amount you owe when you file your 2008 return.

http://www.irs.gov/newsroom/article/0,,id=179211,00.html

[Platapus]

http://digits.hrblock.com/newsletter/yourtaxes/2008return.php


Thanks for the source. I have been telling people this for months but never could find a citable source.

I wonder if I have to declare that $300 as income so I can get taxed on a future overpayment of taxes?

I am sure that the IRS has thought about that :nope:

[SUBMAN1]

Um...the IRS diagrees:

What is it? It's an economic stimulus payment that more than 130 million households will receive starting in May. It's not taxable, and it won't reduce your 2007 or 2008 refund or increase the amount you owe when you file your 2008 return.
http://www.irs.gov/newsroom/article/0,,id=179211,00.htmlNo they don't disagree, they are just not telling the whole story. This is considered part of your refund next year. Now here's the catch - If you get a refund, this money is deducted from it. If you don't get a refund, you will not have to pay it back. This is the part that irks me, since now I have to figure out how not to pay extra tax this year so that I can keep my advanced $1200 tax free. I'm working it right now.

-S

[Tchocky]

These checks were never supposed to be long-term savings. THe whole idea is to keep money flowing for the next 3/4 months.
You always had to pay it back.

The wrong incidence, if you ask me. Tax credits for low earners, introduced at the point of earning, not aftertax, will ensure that the money will get to those who'll spend it.

[Ducimus]

Consider it just an advanced payment towards your 2008 tax return! :down: What a load of rubbish!!!


Not news. It doesn't take a rocket scientist or news media to know the goverment is just gonna get it back again come tax day next year. Im gonna do the same thing with this tax break as i did the last time Bushy boy came out with this copeout of a "plan" to save the economy.....

Stick it in the bank, and forget i have it.

Besides that, I don't feel like helping China's economy.

[3Jane]

Can't be any worse than our Governments recent suicidal blunder.

They just dropped the 10% tax rate to the lowest earners in the country who don't have young children.

Nothing like a bit of sexual discrimination against those females in our society who are experiencing fertility issues. :nope:

What?

[bradclark1]

Can't be any worse than our Governments recent suicidal blunder.

They just dropped the 10% tax rate to the lowest earners in the country who don't have young children.

Nothing like a bit of sexual discrimination against those females in our society who are experiencing fertility issues. :nope:
Maybe it's the government's way to try and up the birth rate:hmm:

[Jimbuna]

Can't be any worse than our Governments recent suicidal blunder.

They just dropped the 10% tax rate to the lowest earners in the country who don't have young children.

Nothing like a bit of sexual discrimination against those females in our society who are experiencing fertility issues. :nope:

What?


and increases in child benefit and tax credits.


It's okay if you live on the breadline and can have kids.....but tough cheese if your childless.

http://news.bbc.co.uk/1/hi/uk_politics/7385032.stm

Many legal eagles are beginning to cite this as discriminatory toward low paid/unemployed childless females.

Whatever interpretation you put on it....another nail in mr. personalities coffin :lol:

[TDK1044]

The rebate checks are actually an advance on next year's refund. Therefore it's non-taxable income. However, if you don't usually get a refund, expect to pay that $600 back next year when you file.