Rebate Checks

[Sunnyd]

Originally Posted by furby2000

That's funny.. I am not reading that middle sentence on the article. Did they remove it because it was mistaken???

Either way. I'm not getting anything Not fair..

I've read that article three times and I don't see the middle sentence either.

[fannie]

Ok, here's a couple good articles on it. It's NOT an advance on next year's refund. And it's NOT taxable income.

http://www.usnews.com/articles/busin...ffect-you.html

How Tax Rebates Would Affect You
By Kimberly Palmer
Posted January 24, 2008


The White House and House leaders moved one step closer to approving an economic stimulus package today as both sides reached an agreement on the plan's outline. The package, which focuses both on rebates for taxpayers and tax incentives for businesses, is now pending approval by the House and Senate, as well as the president's signature. Here's what consumers should know.

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How big will my check be?
The proposed package includes up to $600 for single taxpayers and $1,200 for married couples, plus an extra $300 per child. Those who did not pay federal income taxes in 2007 are eligible for $300 per person or $600 per married couple as long as they earned more than $3,000 for the year. High earners are out of luck: The program will be phased out for single taxpayers earning over $75,000 and married couples earning more than $150,000.

When will I get it?
If the deal is approved quickly, people can probably expect their checks by July.

Do I need to pay taxes on it?
No. Rebates are a form of tax relief, according to a Treasury Department spokesman, so they are not taxable.

What are people going to do with the money?
If history is any guide, paying off debt will be the most popular response. Researchers at the University of Michigan studied consumer behavior after $300 and $600 rebates were sent to taxpayers in 2001. They found that almost half of recipients used the money to pay down debt, while 27 percent saved most of it, and 25 percent spent most of it. Spending increased with age, with almost 36 percent of those over the age of 65 choosing to spend most of their rebate.

Tags: economy | recession | tax returns | economic stimulus


And:

http://www.usnews.com/articles/busin...n-summary.html

Stimulus Plan Summary
By Matthew Bandyk
Posted January 24, 2008


The Bush administration and House leaders today announced an economic stimulus package estimated at $150 billion. It still must receive House and Senate approval and be signed into law by President Bush. It has two main components:

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Tax rebates. The biggest component is made up of tax rebates to Americans who earned at least $3,000 in 2007. Individuals who pay federal income taxes would receive $600 checks in the mail, and married couples who file jointly would receive $1,200. Those who do not pay any federal income taxes but make more than $3,000 would receive $300 for individuals and $600 for couples.

When would Americans actually see this money? Treasury Secretary Henry Paulson said that the government could begin making payments "within roughly 60 days of enactment" and be "done in something under 10 weeks." The Associated Press reports that rebates could be in the mail in June, but Bernard Baumohl of the Economic Outlook Group predicted that July or August is more likely due to delays with the Internal Revenue Service. "It's not like the IRS has little else to do this time of year," he said, alluding to the need to process millions of income tax refunds.

Incentives for business. The second component is about $50 billion in tax incentives aimed at encouraging businesses to invest. These provisions would include a 50 percent write-off of capital equipment purchased this year and a $200,000 deduction for equipment purchased by small businesses. Baumohl was skeptical of these provisions, saying "business leaders are being understandably cautious, holding back major spending projects until they get a clearer idea of where the economy is headed."

Still up for debate. Conspicuously missing from the package was a proposal pushed by Democrats to increase unemployment benefits. That omission may be a point of contention with some in Congress. On whether or not new provisions will be added, Paulson said, "The American people are not going to have a lot of patience for taking time. We owe the American people speed, and we owe them a policy that's going to work." He said he was open to the Senate's involvement in shaping the package but added: "I think what we've got is great."

Tags: economy | recession | tax returns | fiscal policy | economic stimulus

[yougetthesmiles]

You only have to claim it as income if you itemize.

[celstu1]

oh yeah Im sure. Get this I live in NH, there is no state tax, but I work in MA so I pay the state tax anyways 5% of my check. Well I get to file MA state tax forms at the end of the year and after paying the state like $3,000 I get back maybe $250. And the following year, I have to claim that as INCOME and pay taxes on it!!!! LOL Is that not assinine???