I’ve received a number of questions over the past few days about the tax rebates slated to be mailed out in May.
Most of the questions focus on the question of where the rebates come from and how they affect your liability or refund for 2007. The short answer is that the rebates should not affect your liability or refund for 2007.
For more information about tax liabilities and the rebate, see my prior post on the subject.
With respect to refunds, the amount of your 2007 refund will not affect your tax rebate. However, how you choose to accept your 2007 refund might accept the manner in which you receive your 2007 rebate; click here for more information on direct deposit and your rebate.
All of that said, this is free money. Okay, nothing is free. My children (and yours) will pay for it eventually. But for now, it really doesn’t affect your taxes – it is not an advance on your refund for 2008 (as the checks for 2001 were).
This check is a handout from the government. You will not report the amount of your tax rebate on your tax return for 2007 or for 2008. It will not increase or decrease the amount of your liability or your refund. Once you get the check, Congress hopes that you simply put it back into the economy. And that’s the end of it – for now.
Technically, you would need to report the rebate on your 2008 return, although it can only help you. My understanding is that if you had a child this year, you could get an additional $300 on your 2008 tax return. Of course, the check in May won’t reflect the new addition.
In short, the amount of the benefit is the larger of the amount based on the 2007 return and the amount based on 2008 return reduced by the amount of the “rebate check.”
I’m not sure why you would report the rebate since it doesn’t affect your 2008 liability – but it looks like you’re right.
Re having a child, I am not aware of any specifics yet but I do understand that there will be a worksheet on the 2008 for “adjustments” – though I can’t find a list of what those would be.
kelly, i know this is a little off subject, but i keep hearing that there are ways you can receive free money from the govenment(not the 2008 rebate) maybe gov. grants or just free money period. if so what are the websites and/or numbers? thanks
Nothing in life is free so WATCH YOUR BACK WITH YOUR TRIGGER FINGER I DO AND ITS WORKED VERY WELL FOR 50 YRS (GOD MADE MAN, AND SMITH AND WESSON MADE US EQUALS)
If the government hopes we go and spend the money in the economy, I can assure you that what we get back isn’t going anywhere but savings. We aren’t spending a dime. Alot needs to be done and people need money to survive, not buy every want that is out there. Survival is the answer right now. I’m tired of working all the time and spending it on high gas prices, food ect. Vacations? What is that?
i have a question how do i recieve free money from the government because i am in need for some financial help but am not sure how to request it or to recieve it can you assist me
Hi, I read this article. “For more information about tax liabilities and the rebate, [see my prior post on the subject]” given in this article is very useful to me. Thanks
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