Tentative deal reached on tax rebates

[Aleta]

What they were saying was that people would have to wait until May to get a refund because many don't file their taxes until later. I would think that by that time, you would know where you stand. We had the same situation when they gave the last stimulus package out and we also owed money so I feel your pain. I believe that that particular one was for the year we were in, not the previous year like this one is.

[sweeps]

More than likely we will have to show this rebate as income for 2008 and pay tax on it.

No, not likely at all. It doesn't make sense to pay tax on a tax rebate.

[maat55]

Good news, I just got off the phone with my accountant, the rebate will NOT be taxed next year.

[ceejay74]

I would really want to pay off debt with some and have fun with the rest. But it's coming out of domestic programs, so I might need to donate some of it to a worthy organization, since my receiving it is going to hurt our national infrastructure.

[maat55]

The only domestic program you should worry about is your back pocket. This rebate is just a drop out the bucket of money you will never see from your SS investment. Although, giving to worthy cause is admirable.

[Joan.of.the.Arch]

Well, count me among those who don't understand where the money is coming from. It is seems as if money will be created out of thin air in order to generate more money out of thin air, so that the second pool of thin air money can later be taxed to replace (and hopefully exceed, or else it means the stimulus won't have worked) the first batch of thin air money with money that has now somehow become "real" by virtue of having been spent for goods & production.

Even speaking of it as a "rebate" gives me a brain kink. A rebate is money given back. What money is given back? Money I will have paid in withholding over 20007? NO, I don't think so 'cause that will be taken care of with our April 14th dealings. Money they expect I will be paying as withholding in 2008? In the latter case then, it has not been given by me, so how can it be given back? I haven't sent it in yet. And what If I turn out not to have any withholding in 2008? Then would I owe the "rebate" back?

This reminds me of certain real world algebra problems that I can never keep straight unless every step is written down and I can keep reviewing the facts that my intuition refuses to accept.

[disneysteve]

Well, count me among those who don't understand where the money is coming from. It is seems as if money will be created out of thin air

Even speaking of it as a "rebate" gives me a brain kink. A rebate is money given back. What money is given back?And what If I turn out not to have any withholding in 2008? Then would I owe the "rebate" back?

I'm glad I'm not the only one who just isn't comprehending this plan. They keep calling it a rebate - a rebate of what exactly? And will it have any effect at all on my 2008 taxes?

[maat55]

My CPA told me today it will NOT be taxed in 2008.

[sweeps]

The only domestic program you should worry about is your back pocket.

Hehehe. Had a chuckle at that one.

[disneysteve]

My CPA told me today it will NOT be taxed in 2008.

So we're all going to get this check and it will have absolutely no effect on our 2008 taxes. We'll still owe the same amount we would have owed or still get the same refund we would have gotten even if we had never received that check. Is that correct as far as everyone knows?

[LivingAlmostLarge]

I heard its just eliminating a tax bracket as well.

[thkgranny]

CNN warns of Tax Rebate Scammers

Check it out on their site.

Doesn't surprise me at all that people would stoop so low..........they're using the phone and Internet to get your banking info so they can 'direct deposit' your check.

[Exile]

Sweeps: It's possible that they might consider social security as earning money in order to help the older ones on fixed incomes.

I don't think so, Aleta. It appears that Pelosi sold those of with only Social Security income down the river. And the Senate Democarats also don't appear willing or able to fight the Republicans in order to get S.S recipients included.

[sweeps]

Update: Senate breaks stimulus stalemate

One tiny blurb at the end:

Other lawmakers worried about expanding the budget deficit.

"We have to remember that every dollar being spent on the stimulus package is being borrowed from our children. And our children's children," said Sen. Judd Gregg, R-N.H.

[vistashell]

I had recently heard something about $600, what is the final number here, anyone know?