Ask The Taxgirl: 2007 Liability And Rebates

Taxpayer asks:

For 2007 I owe $1000 to the IRS. I’m entitled to a tax rebate of $1800 (married filing jointly with 2 kids). Should I pay the IRS the $1000 and then receive the $1800 tax rebate check? Or should I not pay the IRS a $1000 and then I will receive tax rebate check of $800 ($1800 – $1000).

Taxgirl says:

The rebate has nothing to do with your 2007 liability. So go ahead and pay the $1000 and wait for your rebate. If you don’t pay, it might hold up your rebate check – plus you’ll be subject to interest and penalties.