The 411 on Bush's Tax Rebates.
Why good morning my fellow pf'ers! Is it me, or does it seem like this week's going to be one helluva good time? Whatever the case, i wish you all nothing but great financial success this week :)
Speaking of which, I've received some great news regarding Bush's famous $600/$1200 tax rebates. There's been a lot of myths and unanswered questions around town about them, especially amongst the PF blogosphere, and I hadn't quite grasped the situation entirely until this weekend. My accountant shot out an email on it, and then since i'm a curious little J., I asked her a few questions to clarify these circulating myths. I'm always cautious of "free" money, so hopefully this helps you out as much as it did me. Here's what we got (summarized):
Most people who pay taxes, or earn at least $3,000, AND file an '07 federal income tax return before April 15th, 2008 will receive this stimulus package rebate. The most you can receive is $600 for individuals, and $1,200 for couples (w/ an additional $300 per child). If you're single and make more than 75k (couples 150k or more) you will receive smaller checks. If you make more than 87k (couples 175k), unfortunately you will not receive a rebate.
She also mentioned that in order to receive a stimulus payment in 2008, you must file your '07 tax return by April 15, 2008. That's all you have to do! No extra paperwork or anything. Here are now the questions i had for her, as well as her answers (also summarized):
1) Are these basically "future advances" on next year's tax refunds? NO, they are not future advances.
2) Will we be taxed on these? No.
3) If so, are we forced to accept them or can we turn them down? You can turn it down, but only if you receive it via check and choose not to cash it. If you picked direct deposit when you filed your taxes, then this rebate will also be direct deposited into the same account and thus you cannot turn it down. Either way you'd basically be losing out on money as they are not taxed, and do not harm you.
4) Are these one-time rebates, or yearly rebates? Yes, they are one time rebates.
Soooo, there you have it! Straight from a CPA's mouth :) I hope this helps you as much as it helps me. Perhaps now I can actually get excited for this "free" money! he he... As always, please contact a professional if you're seeking professional advice. I am not a professional, merely a blogger trying to learn more.
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Speaking of which, I've received some great news regarding Bush's famous $600/$1200 tax rebates. There's been a lot of myths and unanswered questions around town about them, especially amongst the PF blogosphere, and I hadn't quite grasped the situation entirely until this weekend. My accountant shot out an email on it, and then since i'm a curious little J., I asked her a few questions to clarify these circulating myths. I'm always cautious of "free" money, so hopefully this helps you out as much as it did me. Here's what we got (summarized):
Most people who pay taxes, or earn at least $3,000, AND file an '07 federal income tax return before April 15th, 2008 will receive this stimulus package rebate. The most you can receive is $600 for individuals, and $1,200 for couples (w/ an additional $300 per child). If you're single and make more than 75k (couples 150k or more) you will receive smaller checks. If you make more than 87k (couples 175k), unfortunately you will not receive a rebate.
She also mentioned that in order to receive a stimulus payment in 2008, you must file your '07 tax return by April 15, 2008. That's all you have to do! No extra paperwork or anything. Here are now the questions i had for her, as well as her answers (also summarized):
1) Are these basically "future advances" on next year's tax refunds? NO, they are not future advances.
2) Will we be taxed on these? No.
3) If so, are we forced to accept them or can we turn them down? You can turn it down, but only if you receive it via check and choose not to cash it. If you picked direct deposit when you filed your taxes, then this rebate will also be direct deposited into the same account and thus you cannot turn it down. Either way you'd basically be losing out on money as they are not taxed, and do not harm you.
4) Are these one-time rebates, or yearly rebates? Yes, they are one time rebates.
Soooo, there you have it! Straight from a CPA's mouth :) I hope this helps you as much as it helps me. Perhaps now I can actually get excited for this "free" money! he he... As always, please contact a professional if you're seeking professional advice. I am not a professional, merely a blogger trying to learn more.
Labels: george bush, safeway, stimulus check, tax rebates, taxes
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posted by J. Money at
8:57 AM
3 Comments:
Thanks for stopping by my blog.
Do you know if the income limit for the tax rebates gross income or adjusted gross income?
:)
It's actually for your adjusted gross income, which is even better!
I can't wait until we get our rebate. $1,200 staight to our Roth IRAs.
-1MansMoney
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