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Subject Author Date
stimulus payment - final post on this topic Ed 03-04-2008
Posted by tobe on March 8, 2008, 12:59 pm
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> A rebate is a return or refund on something you have already paid. The
> stimulus payment is therefore not a rebate as it is not a return of any
> taxes you already paid. Congress & the Pres. created a refundable tax
> credit for tax year 2008. You will see this tax credit on your 2008 tax
> return. They then gave the US Treasury permission to send you this
> refundable tax credit in advance of your having to file your 2008 tax
> return to obtain it.
> If the advance payment is larger than your 2008 tax credit.... your in
> luck as you don't have to pay it back. If your tax situation in 2008
> generates a credit that is larger than your advance payment, your in
> luck again as you will get to use the excess to reduce your 2008 taxes.

So if a dependent (over age 17) who files taxes will get no "rebate"
this year, next year when the person files no-longer-as-a-dependent,
will he or she only get a tax credit up to what taxes are owed, and, if
less that $600, not get the "full" $600 "rebate"?

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Posted by Harlan Lunsford on March 8, 2008, 3:01 pm
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 tobe wrote:
>> A rebate is a return or refund on something you have already paid.
>> The stimulus payment is therefore not a rebate as it is not a return
>> of any taxes you already paid. Congress & the Pres. created a
>> refundable tax credit for tax year 2008. You will see this tax credit
>> on your 2008 tax return. They then gave the US Treasury permission to
>> send you this refundable tax credit in advance of your having to file
>> your 2008 tax return to obtain it.
>> If the advance payment is larger than your 2008 tax credit.... your in
>> luck as you don't have to pay it back. If your tax situation in 2008
>> generates a credit that is larger than your advance payment, your in
>> luck again as you will get to use the excess to reduce your 2008 taxes.
>
> So if a dependent (over age 17) who files taxes will get no "rebate"
> this year, next year when the person files no-longer-as-a-dependent,
> will he or she only get a tax credit up to what taxes are owed, and, if
> less that $600, not get the "full" $600 "rebate"?
>
Not a rebate per se, but certainly eligible for the full maximum credit.

ChEAr$,
Harlan Lunsford, EA n LA

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

Posted by Taxmanhog on March 8, 2008, 5:05 pm
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"Alan"

> My last post on this subject:
>
> A rebate is a return or refund on something you have already paid. The
> stimulus payment is therefore not a rebate as it is not a return of any
> taxes you already paid.

I disagree, wage pay checks from 1/1/2008 to 4/30/2008 showing with holdings
of Federal Income Tax would certainly have been credited the US TREASURY,
which are deposited on a weekly basis... through out the calendar year.



So, as on now and through the distribution phase those folks actually out
working for a living ARE paying taxes in 2008, in this STIMULUS is a REBATE
of some of those payments, which will be RECONCILED when the 2008 return is
filed in the spring of 2009.



I believe the mechanics of this operation are better than the fiasco of the
early 90's when someone thought it was a bright idea to lower the Circular E
FED-WH factors to put a few pennies in peoples weekly paycheck, that action
was an effort to implement a mid-year tax reduction. The end result was
a -LOT- of folks who have balances due at the end of the year rather than
refunds, talk about some PO'd Tax Payers.

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

Posted by Harlan Lunsford on March 9, 2008, 12:02 pm
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Taxmanhog wrote:
> "Alan"
>
>> My last post on this subject:
>>
>> A rebate is a return or refund on something you have already paid. The
>> stimulus payment is therefore not a rebate as it is not a return of any
>> taxes you already paid.
>
> I disagree, wage pay checks from 1/1/2008 to 4/30/2008 showing with holdings
> of Federal Income Tax would certainly have been credited the US TREASURY,
> which are deposited on a weekly basis... through out the calendar year.

I have to agree with Alan on this one. How can one receive a rebate on
something not yet paid? And taxes aren't "paid" until the return is
filed? And since it's for 2008, those returns won't be filed until
next year about this time.

So I would recommend we call it an "advance rebate". Or maybe an
"advance rebate in a political year."

>
> So, as on now and through the distribution phase those folks actually out
> working for a living ARE paying taxes in 2008, in this STIMULUS is a REBATE
> of some of those payments, which will be RECONCILED when the 2008 return is
> filed in the spring of 2009.
>
Ah, now you got it. But, remember it's not just for "those folks
actually out working for a living", it also includes retirees drawing
disability and/or social security checks only.
>
>
> I believe the mechanics of this operation are better than the fiasco of the
> early 90's when someone thought it was a bright idea to lower the Circular E
> FED-WH factors to put a few pennies in peoples weekly paycheck, that action
> was an effort to implement a mid-year tax reduction. The end result was
> a -LOT- of folks who have balances due at the end of the year rather than
> refunds, talk about some PO'd Tax Payers.
>
Oh yes, remember it well.

ChEAr$,
Harlan

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

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