FA+
Shop
Government Stimulus checks.
18 years ago
So...
I was prompted to think about this due to a discussion in 
betelguese's journal regarding the tax checks and some input that 
wezweasel added about it.
Well, we've all doubtless heard about the government plan to offerchecks for up to $1200 to individuals and families as an effort to spurthe economy into some kind of growth. But what you're NOT hearing isthat the money isn't just being given to us. It's being offered as ifit was, but is actually going to be coming out of our tax returns fornext year! In effect, the government is just offering a loan againstyour next tax return. But they're not TELLING anyone this. And the siteon CNN that had this information http://www.cnn.com/2008/POLITICS/02.....lus/index.html has been removed! and replaced with this one, http://www.cnn.com/2008/POLITICS/01.....omic.stimulus/ which makes no mention of the stimulus package funds coming out of next years taxes. A good explanation of this is here, http://biz.yahoo.com/brn/080212/24581.html?.v=1#7 but just in case it's taken down, I'll cut and paste it all the same.
What will the rebate mean to my 2008 taxes?
Will I owe taxes on my rebate amount next year? What if this year mysituation changes and that means my rebate amount should be less?
Formost filers, says Luscombe, this year's rebate will appear as a simplegift from the government. The rebate amounts are tax-free.
But filers will have to reconcile any money they receive this year when they file their 2008 returns.
"It harksback to the 2001 situation when we got the new 10 percent bracket andgot an advance check for that. Then on next return had to account forit," says Luscombe. "It's expected to be that way this time."
The2008tax forms should have a line for the new credit. When calculating taxesnext year, taxpayers will have to subtract what they got as a rebatecheck the previous summer.
"Some people might think that's unfair," says Luscombe, "but they got the money, and they got it early."
One thingtaxpayers won't have to worry about is giving back any excess if their2008 taxes show that the advance this year was actually more than theyshould have received.
"If it turns out that credit on your2008return is greater, you get to take that additional amount,"says Luscombe. "If it's lesser than what you got in 2007, you don't haveto refund that back to government." The law says the IRS can't recoverthe extra payment by reducing your 2008 refund or adding to your 2008taxbill.
In short, that means that your 2008 tax return willbe negative whatever you received in your economic stimulus, unless you would begetting back less in your next return, than you got, (it won't make youowe money, you just won't get anything back if you earn less than you'dget in this check.) So if you got a stimulus check for say $800, andyour next tax return was for $1200, you'd only get to keep $400 of itbecause you'll have to pay back what you're "borrowing" as part of thestimulus package. But if your return is only $600, you won't have topay the $200 difference because your return was lower than the stimuluscheck.
I urge anyone thinking of taking this money, to do anyresearch you can into it, to see if this was taken down from mostplaces becaue it's incorrect, or if it's been taken down because thegovernment doesn't want it public knowledge that this is something thatwill eventually lead to us losing whatever funds we get from our next years taxes.
Xoa
Who doesn't find being given our own money as a stimulus is all that cool
betelguese's journal regarding the tax checks and some input that 
wezweasel added about it. Well, we've all doubtless heard about the government plan to offerchecks for up to $1200 to individuals and families as an effort to spurthe economy into some kind of growth. But what you're NOT hearing isthat the money isn't just being given to us. It's being offered as ifit was, but is actually going to be coming out of our tax returns fornext year! In effect, the government is just offering a loan againstyour next tax return. But they're not TELLING anyone this. And the siteon CNN that had this information http://www.cnn.com/2008/POLITICS/02.....lus/index.html has been removed! and replaced with this one, http://www.cnn.com/2008/POLITICS/01.....omic.stimulus/ which makes no mention of the stimulus package funds coming out of next years taxes. A good explanation of this is here, http://biz.yahoo.com/brn/080212/24581.html?.v=1#7 but just in case it's taken down, I'll cut and paste it all the same.
What will the rebate mean to my 2008 taxes?
Will I owe taxes on my rebate amount next year? What if this year mysituation changes and that means my rebate amount should be less?
Formost filers, says Luscombe, this year's rebate will appear as a simplegift from the government. The rebate amounts are tax-free.
But filers will have to reconcile any money they receive this year when they file their 2008 returns.
"It harksback to the 2001 situation when we got the new 10 percent bracket andgot an advance check for that. Then on next return had to account forit," says Luscombe. "It's expected to be that way this time."
The2008tax forms should have a line for the new credit. When calculating taxesnext year, taxpayers will have to subtract what they got as a rebatecheck the previous summer.
"Some people might think that's unfair," says Luscombe, "but they got the money, and they got it early."
One thingtaxpayers won't have to worry about is giving back any excess if their2008 taxes show that the advance this year was actually more than theyshould have received.
"If it turns out that credit on your2008return is greater, you get to take that additional amount,"says Luscombe. "If it's lesser than what you got in 2007, you don't haveto refund that back to government." The law says the IRS can't recoverthe extra payment by reducing your 2008 refund or adding to your 2008taxbill.
In short, that means that your 2008 tax return willbe negative whatever you received in your economic stimulus, unless you would begetting back less in your next return, than you got, (it won't make youowe money, you just won't get anything back if you earn less than you'dget in this check.) So if you got a stimulus check for say $800, andyour next tax return was for $1200, you'd only get to keep $400 of itbecause you'll have to pay back what you're "borrowing" as part of thestimulus package. But if your return is only $600, you won't have topay the $200 difference because your return was lower than the stimuluscheck.
I urge anyone thinking of taking this money, to do anyresearch you can into it, to see if this was taken down from mostplaces becaue it's incorrect, or if it's been taken down because thegovernment doesn't want it public knowledge that this is something thatwill eventually lead to us losing whatever funds we get from our next years taxes.
Xoa
Who doesn't find being given our own money as a stimulus is all that cool
http://taxingtennessee.blogspot.com.....nceptions.html
This gives a good explanation of what is really going to happen.
> MAKE
One thing though, the general idea of the program, is to get people to spend. They're hoping that we'll all take that money, and spend it on things, not save it. However, in this economy, it's pretty hard to save money, because it's hard to come up with a surplus to save.