2008 Economic Tax Return? 600 or 1200

[NewWorldOrder]

hey,

 

I just read that our TAX return in May (if you qualify) for $600 or $1200 econmic jumpstart bill is kind of mis-leading.

 

Basically from what I read is it'sbasically an advancement of your 2008 Tax return next year.

 

So lets say someone like me who would receive 600.00 fed dollars this may, files my tax return next year (2008) and it supposed to get back like 800.00 then I would only be receiving 200.00.

 

This same kind of thing happened back in 2001, and people were very upset to find that out.

 

If this is true then I would rather not see this happen.

 

Is this true?

 

 

[seanfingh]

 

That is not my understanding of the credit.

 

http://www.irs.gov/irs/article/0,,id=177937,00.html

 

 

[Schmakt]

interesting... that wasn't my understanding of it either...

 

I thought we were basically borrowing a ton of cash from China, which would be given to tax payers who could spend it on things like from China or oil from Saudi Arabia...

[Stronguy]

Nope -- it's an advance on estimated tax refunds. If you end up owing money at the end of the year you will end up owing $600 more.

[MutantKeys]

If I got a 2K tax return will I still get the 600 check?

[NewWorldOrder]

If I got a 2K tax return will I still get the 600 check?

 

yes for this year, but next year (2008) if you got 2K then you would get 1400 (minus 600 you got this year).

 

 

 

[MutantKeys]

So it's basically an advance ...

 

I thought we were getting free money

[Transplant]

If I got a 2K tax return will I still get the 600 check?

 

yes for this year, but next year (2008) if you got 2K then you would get 1400 (minus 600 you got this year).

 

 

No. The way I understand it is that 1) assuming you have a tax obligation of at least $600 for an individual and 2) your indiv. income is not > 75k you will get $600 regardless of any refund you are otherwise entitled to. The caveat here is that a refund is only the amount you overpaid Uncle Sam for your taxes. You can get a refund but still have paid at least $600 in taxes during '07. In MK's case, I imagine that he will receive a $2k refund and still have paid at least 600 in taxes. Thus, he will get 600 in May.

 

I am not a tax professional, if you rely on my information to your detriment, you are just stupid and I can't help you anyway.

[TheWatcher]

Nothing in life is free, Danny..except STDs (thumbs u

[NewWorldOrder]

Pros

• Single and Families get additional 600/1200 this year from the government

• Shot in the arm of the economy in the short-term

• Extra money to spend. Save, or pay bills

 

Cons

• Misleading

• Either amount will be deducted from your 2008 tax return

• Hurts the economy 2008

o Most people will not know this fact till next year and will caught be surprise

o Less money= consumer spending with that 2008 Tax Return will suffer

 Vacations, TV’s, shopping, etc.

• Example your are single and received 600 this may

o 2008 tax return you were supposed to get $1000 (federal)

 However now you get $1000.00 -600 for a total of $400.00

 

 

YA PREISDENT BUSH, ANOTHER GREAT STRIVE IN THE USA!!!

 

[Transplant]

So it's basically an advance ...

 

I thought we were getting free money

Without defining "free" here is what the IRS says,

 

"The IRS will use the 2007 tax return to determine eligibility and calculate the basic amount of the payment. In most cases, the payment will equal the amount of tax liability on the return with a maximum amount of $600 for individuals ($1,200 for taxpayers who file a joint return) and a minimum of $300 for individuals ($600 for taxpayers who file a joint return).

 

Even those who have little or no tax liability may qualify for a minimum payment of $300 ($600 if filing a joint return) if their tax return reflects $3,000 or more in qualifying income."

[Transplant]

From the Internets:

 

To summarize, the rebate that will be sent out in May 2008 is a credit to the taxes you’ll owe on 2008 income, but it is a new credit, so you don’t have to “pay it back.”

[OldGuy]

Nothing in life is free, Danny..except STDs (thumbs u

 

$75 for dinner

$35 for a movie

 

STD = $110

[seanfingh]

 

The link in my original post has two additional links that break it down pretty well.

[NewWorldOrder]

So it's basically an advance ...

 

I thought we were getting free money

Without defining "free" here is what the IRS says,

 

"The IRS will use the 2007 tax return to determine eligibility and calculate the basic amount of the payment. In most cases, the payment will equal the amount of tax liability on the return with a maximum amount of $600 for individuals ($1,200 for taxpayers who file a joint return) and a minimum of $300 for individuals ($600 for taxpayers who file a joint return).

 

Even those who have little or no tax liability may qualify for a minimum payment of $300 ($600 if filing a joint return) if their tax return reflects $3,000 or more in qualifying income."

 

You are telling us what we already know and I am not talking about 2007.

 

I am talking about 2008 Tax Return after you have gotten you refund in MAY.

 

ITS NOT FREE MONEY

 

http://articles.moneycentral.msn.com/Taxes/Advice/TheDetailsOnTaxRebates.aspx

 

read this, so I guess I am not stupid huh? smart guy

[MutantKeys]

"Remember, this is your money you're getting back, and the rebate checks are basically an advance on the credit you'd otherwise get in 2009."

 

This sums it up

[NewWorldOrder]

From the Internets:

 

To summarize, the rebate that will be sent out in May 2008 is a credit to the taxes youll owe on 2008 income, but it is a new credit, so you dont have to pay it back.

 

Right you dont have to pay it back, but if you in 2008 have a credit over let the 600.00 mark for let say $800 and you are single and got 600.00 in May of 2007 then your 2008 Fed Tax Return wil lbe only 200.00.

 

again not free money if you have a credit in 2008.

 

This is only good if you own money.

[seanfingh]

So it's basically an advance ...

 

I thought we were getting free money

Without defining "free" here is what the IRS says,

 

"The IRS will use the 2007 tax return to determine eligibility and calculate the basic amount of the payment. In most cases, the payment will equal the amount of tax liability on the return with a maximum amount of $600 for individuals ($1,200 for taxpayers who file a joint return) and a minimum of $300 for individuals ($600 for taxpayers who file a joint return).

 

Even those who have little or no tax liability may qualify for a minimum payment of $300 ($600 if filing a joint return) if their tax return reflects $3,000 or more in qualifying income."

 

You are telling us what we already know and I am not talking about 2007.

 

I am talking about 2008 Tax Return after you have gotten you refund in MAY.

 

ITS NOT FREE MONEY

 

http://articles.moneycentral.msn.com/Taxes/Advice/TheDetailsOnTaxRebates.aspx

 

read this, so I guess I am not stupid huh? smart guy

 

Not stupid, apparently not too friendly, though.

[Transplant]

I wasn't calling you stupid unless you rely on me for tax advice. It's a tongue in cheek disclaimer to warn people against relying on my tax advice. It's free and it's worth every penny.

 

As for 2008 taxes, before the stimulus package was passed, there was no 600/1200 tax credit, so you didn't get this money. After it passed a new credit was put on the books. You won't get the credit until 2008 returns are filed. The gov't wants you to have the money now so you will spend it, therefore they give you a check in anticipation of the credit for next year. It's not an advance of a refund you would have gotten without the new credit.

[MutantKeys]

So this will benefit the people who usually get back 100-200 or so back since they dont have to pay the 600 dollars back, I guess they just wont get any money back at all in 09 ..