What will you do with it?

Umm . . . I hate to disappoint anyone, but this isn't free money.  It's just an advance on your taxes for next year.  So be careful, or you may wind up in a mess come next April 15.

Remember, this is your money you're getting back, and the rebate checks are basically an advance on your 2009 refund. When similar rebates were sent out in 2001, said tax expert Mark Luscombe, "a lot of people were upset to see their (next) refund reduced."

Link to full article

Very good point Myra....

and that is a good link about it.

http://biz.yahoo.com/cnnm/080208/020808_rebates_what_you_need_to_know.html?.v=11&.pf='insurance'

Here is a link to a very easy to understand article about this.

OK, so basically what this means is if next year our federal tax return is something like $1500, we only get $300 b/c the rebate is $1200, but if next year our federal tax return is only $1000, we won't get anything back but we won't have to pay them the $200? 

cakana

NicoleS

Will someone help me here?

So we file taxes and all, and make more than $3000 and all that, but because of education credits we get all of our money back.  So do we get $600 or $1200 (for DH and I jointly)?  Our tax bill is still there, and we'd still have to owe it if not for DH being in school.  I just can't figure out where we fit in, so who can help me understand how this will work?!?!

Oh, and we might spend a few bucks, maybe go out to a nice restaurant, but the rest is going right into savings since we hope to be able to scrape together enough for a downpayment on a house sometime this century!!

or (2) $300 ($600 for a joint return) if either (a) the taxpayer's qualifying income is at least $3,000;

Since it says "or" and not "and" anywhere, I think the above statement means you'll still get the refund.

Thanks for the insight :)

 I'm still reading about this whole thing about this rebate being an advance on next year's refund....  Is this a credit that would be in addition to things that folks can normally take?  Or does it really mean that I would get $600/$1200 less refund next year?  Grrrr.  Why can't anything with the government be SIMPLE?!?  Oh wait that's an oxymoron.

Liesje

OK, so basically what this means is if next year our federal tax return is something like $1500, we only get $300 b/c the rebate is $1200, but if next year our federal tax return is only $1000, we won't get anything back but we won't have to pay them the $200? 

Yeah that's how I'm seeing it too. 

 I'm not sure I'd qualify, I pay quarterly estimated taxes.  But, should a check appear in my mailbox unexpectedly, I'd probably buy a new kitchen door with one of those programmable keyless entry locks.  We are always locking ourselves out!

jennyx0023

Liesje

OK, so basically what this means is if next year our federal tax return is something like $1500, we only get $300 b/c the rebate is $1200, but if next year our federal tax return is only $1000, we won't get anything back but we won't have to pay them the $200? 

 

Yeah that's how I'm seeing it too. 

 Me, too.

No it was not included in your tax return.  It will be a separate check that will be mailed to your home.  They are going to start mailing out the checks in May.

minimom

But I don't *think* it should affect what our "normal" refund (or tax bill) would have been next year.  At least that's the way I'm reading it.  And it seems like that's the way it worked back in 2001.

The 2001 "rebate" reduced our return in 2002.  Unfortunately, I don't remember the specifics.  But DH and I both remember distinctly that for us it wasn't a "rebate" at all, just an advance.

Myra, you're right.  The last time they did this, it was our own money and the form for the next year's taxes required us to put down the amount we received, effectively reducing the refunds for that year.