Tax rebate question

Colo Springs E · April 29th, 2008, 06:23 AM

Hey, does anyone know if this rebate we in the US will be getting soon is "free money?" Or is it an "advance" of sorts, where you'll have to deduct it from any refund/add to what you owe when doing this year's taxes? Or at the very least, will we have to pay tax on it as earnings?

Anyone know? Thanks in advance... -Eric

jlrich · April 29th, 2008, 06:30 AM

I'm pretty sure you'll have to claim it next year.

guitarzan13 · April 29th, 2008, 06:41 AM

yep...

tcadam · April 29th, 2008, 06:51 AM

From IRS.gov:

"Q. Is my Stimulus Payment taxable?

A. No. You will not owe tax on your payment when you file your 2008 federal income tax return. But you should keep a copy of the IRS letter you receive later this year listing the amount of your payment.

Q. If my Stimulus Payment is not going to affect my 2008 tax refund or increase the tax I owe next year, why is it I need to retain the letter that lists how much I received?

A. In the event you do not qualify for the full amount on your 2007 return but you do on your 2008 return, you will need to have the letter as a record of the amount you previously received. [New 4/11/08]

Q. Will the payment I receive in 2008 reduce my 2008 refund or increase the amount I owe for 2008?

A. No, the Stimulus Payment will not reduce your refund or increase the amount you owe when you file your 2008 return."

Hope this helps,

TC

Colo Springs E · April 29th, 2008, 06:53 AM

Thanks TC... sounds like we're good to go!

-eric

stxrus · April 29th, 2008, 07:38 AM

remember the IRS spells "THEIRS"

steve

blacklinefish · April 29th, 2008, 10:31 PM

If your state has income tax, you still might be paying for that. Some state legislatures have bills that would remove the tax liability, but that varies.

--gh

boris bubbanov · April 29th, 2008, 11:08 PM

If your state allows you to deduct the tax you thought you were gonna pay to the IRS, and you've already done that, you'll have to go back and reduce that deduction, and in some cases folks will revert back to their state's standard deduction. But the money isn't "new income" for any purpose.

Louisiana is talking about eliminating the state income tax and paying the bills with oil and gas severance taxes. But will they get rid of the unnecessary state revenue employees? Nah.

tazzboy · April 30th, 2008, 02:06 PM

Here is the link to find out if you are going to get on or not

http://www.irs.gov/app/espc/

odiemann · April 30th, 2008, 02:49 PM

Yeah, there is NO tax on this. Supposed to be tax free at the State level, too.

April 29th, 2008, 06:23 AM	#1 (permalink)
Colo Springs E Friend of Leo's Join Date: Mar 2003 Location: Colorado Springs Posts: 4,862 5 Photos	Tax rebate question Hey, does anyone know if this rebate we in the US will be getting soon is "free money?" Or is it an "advance" of sorts, where you'll have to deduct it from any refund/add to what you owe when doing this year's taxes? Or at the very least, will we have to pay tax on it as earnings? Anyone know? Thanks in advance... -Eric __________________ "Got my technique down and everything. I don't be ticklin' or nothin."

April 29th, 2008, 06:30 AM	#2 (permalink)
jlrich Tele-Afflicted Join Date: Apr 2004 Location: Marion, NC Age: 41 Posts: 1,134 6 Photos	I'm pretty sure you'll have to claim it next year. __________________ MySpace YouTube

April 29th, 2008, 06:41 AM	#3 (permalink)
guitarzan13 Tele-Afflicted Join Date: Jul 2006 Location: LaGrange, GA Age: 43 Posts: 1,004 8 Photos	yep... __________________ Practice make permanent!!!!....Perfect practice makes perfect!!! Chris B. Current Band www.productoffaith.net Last band as a bass player www.neonjones.com

April 29th, 2008, 06:53 AM	#5 (permalink)
Colo Springs E Friend of Leo's Join Date: Mar 2003 Location: Colorado Springs Posts: 4,862 5 Photos	Thanks TC... sounds like we're good to go! -eric __________________ "Got my technique down and everything. I don't be ticklin' or nothin."

April 29th, 2008, 11:08 PM	#8 (permalink)
boris bubbanov Poster Extraordinaire Join Date: Feb 2007 Location: New Orleans, LA + in the past Posts: 5,907	If your state allows you to deduct the tax you thought you were gonna pay to the IRS, and you've already done that, you'll have to go back and reduce that deduction, and in some cases folks will revert back to their state's standard deduction. But the money isn't "new income" for any purpose. Louisiana is talking about eliminating the state income tax and paying the bills with oil and gas severance taxes. But will they get rid of the unnecessary state revenue employees? Nah. __________________ Bubban0v

April 29th, 2008, 06:51 AM	#4 (permalink)
tcadam Tele-Meister Join Date: Jan 2007 Location: Delaware Age: 41 Posts: 264 1 Photos	From IRS.gov: "Q. Is my Stimulus Payment taxable? A. No. You will not owe tax on your payment when you file your 2008 federal income tax return. But you should keep a copy of the IRS letter you receive later this year listing the amount of your payment. Q. If my Stimulus Payment is not going to affect my 2008 tax refund or increase the tax I owe next year, why is it I need to retain the letter that lists how much I received? A. In the event you do not qualify for the full amount on your 2007 return but you do on your 2008 return, you will need to have the letter as a record of the amount you previously received. [New 4/11/08] Q. Will the payment I receive in 2008 reduce my 2008 refund or increase the amount I owe for 2008? A. No, the Stimulus Payment will not reduce your refund or increase the amount you owe when you file your 2008 return." Hope this helps, TC

April 29th, 2008, 07:38 AM	#6 (permalink)
stxrus Tele-Holic Join Date: May 2007 Location: St. Croix, USVI Age: 56 Posts: 558	remember the IRS spells "THEIRS" steve

April 29th, 2008, 10:31 PM	#7 (permalink)
blacklinefish Tele-Holic Join Date: Jun 2006 Location: Northwest Missouri Age: 40 Posts: 972	If your state has income tax, you still might be paying for that. Some state legislatures have bills that would remove the tax liability, but that varies. --gh

April 30th, 2008, 02:06 PM	#9 (permalink)
tazzboy Friend of Leo's Join Date: May 2005 Location: Eugene, Oregon Age: 31 Posts: 2,467	Here is the link to find out if you are going to get on or not http://www.irs.gov/app/espc/ __________________ tazzboy Guitar: 1982 Gibson Les Paul Standard AMP: 59 Bassman Reissue. EFFECTS: 2 Boss TR-2 Tremolo, Boss CE-2 Chorus, and Boss DM-3 Echo Delay.

April 30th, 2008, 02:49 PM	#10 (permalink)
odiemann Tele-Afflicted Join Date: Mar 2006 Location: Denver Age: 41 Posts: 1,406	Yeah, there is NO tax on this. Supposed to be tax free at the State level, too. __________________ It just got better, I think