Comments on: Is it true the stimulus package is just our 2008 taxes paid early?

By: Richard M

Richard M — Tue, 08 Dec 2009 12:45:48 +0000

It’s sort of true, but don’t worry about it.

The rebate will not effect your 2008 federal tax liability or refund. The law says the IRS can’t recover any extra rebate payment by reducing your 2008 refund or adding to your 2008 tax bill.

The “rebate” is an advance credit against your 2008 tax return (which will be filed in 2009). However, it is calculated based on the amounts shown on your 2007 return. When you file your 2008 return, the IRS will recalculate your “rebate” based on the 2008 amounts. If this results in a larger “rebate”, you will receive a check for the difference. If this results in a smaller rebate, you will not have to repay the difference.

The “rebate” will not increase or decrease any tax refund to which you are entitled. It is an additional refund.

By: Judy

Judy — Tue, 08 Dec 2009 12:08:45 +0000

Not exactly true, but you will have to report it on next year’s return – it’s an advance payment on a tax cut that will be in effect next year – if you get the rebate now, you won’t benefit from the tax cut next year because you will have already gotten the extra money. But your refund for next year will be the same as it would have been if there had been no 2008 tax cut and no rebate.

By: fortuitousoppty

fortuitousoppty — Tue, 08 Dec 2009 11:17:15 +0000

I believe it is for taxes you are paying from 2007. I tell you that if you do not file, you will not get it. Plus, nothing is free, they will get it back “).

By: Queen_Lucki

Queen_Lucki — Tue, 08 Dec 2009 10:44:50 +0000

No that’s not true. CNN originally reported that, but they revoked their statemnt a few days later. It is not an advance.

By: James C

James C — Tue, 08 Dec 2009 10:27:37 +0000

Slap whoever you heard that from.