Hi all long time lurker, first time poster.
Anyway, I am reading that this "rebate " will affect our 2008 tax returns. I found this article on MSN, and it states that:
This isn't free money for most people
The rebate checks are basically an advance on taxpayers' 2009 refunds. After similar rebates were sent out in 2001, tax expert Mark Luscombe said, "a lot of people were upset to see their (next) refund reduced."
The only people for whom this really is free money are low-income folks who won't end up owing any taxes for 2008. Basically, that would be people who earn at least the minimum $3,000 required to trigger the checks or who receive at least $3,000 in Social Security or veterans benefits.
So lets take a situation. Lets say I was expecting to get back $500 on my 2009 return, and my wife and I receive our $1200 "rebate". Does this mean that we would now owe $700?
Am I reading this correctly. It sounds like a lot of people are going to be in big trouble this time next year if they spend that "rebate".
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