Rebate wont cut your refund next year
March 23, 2008 1:25pm CST
I know there are many discussions on this topic, but everyone seems so confused. This is my understanding after reading the IRS website, and others. Congress passed a credit giving us $600 per individual, $1200 per married couple, and an additional $300 for each qualifying child. It was too late to add the credit for 2007, so they added it to 2008, and are giving it to us in advance. The rebate is an advance on this credit, and has nothing to do with your normal refund. If you usually get $1000 back, and nothing else changes you will get $1000 next year. If for whatever reason they gave you too much you wont owe anything back. The deduction you have to take next year is not from your refund - it is from this credit. So if your new credit is $1200 next year and they sent you $1500 this year that $300 is a gift. If your credit is $1500 and they sent you $1200 you will get an extra $300 refund. Again --- this rebate alone will not affect your 2008 refund.
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