Did you know the Economic Stimulus Package is really just a prebate?
By jezzikabret
@jezzikabret (245)
United States
April 7, 2008 7:16am CST
The money we receive in our little package is really just money taken out of next years taxes! So if you get $1200 now and you only get $300 back in taxes next year you would owe the government $900!! The just conveniently forgot to tell us all. What do you think about this? Is bush right for doing this? Should it have been made more public that the money isn't really free like it was made out to be?
visit the link below to see the article in a Military newspaper...
http://kaiserslauternamerican.com/artman2/publish/Commentary_6/Economic_stimulus_package_is_a_prebate.shtml
1 person likes this
7 responses
@lisan23 (442)
• United States
8 Apr 08
Um, no. The information on that site is incorrect. If you go to www.IRS.gov and read the FAQ's and information about the rebates you will find out the following:
This will not count as income on your 2008 taxes.
You will not have to pay this money back.
This money will in no way effect your 2008 tax refund.
It's allright there on the IRS's website. No offense, but I'm much more likely to trust the IRS on this one than someone's personal website.
1 person likes this
@schilds (410)
• United States
28 Apr 08
What you file in 2009 is 2008 your taxes.
It will not reduce the amount of your normal refund or add to what you owe next year.
It is not taxable income.
and if they over pay you on your rebate you do not owe anything back - the overpayment is a gift from the IRS.
What it is, is a credit that wasn't passed in time to get it on 2007 tax forms. It is a credit just like the child tax credit, and the EIC. If they weren't sending out these checks now - next year we would get this much MORE back from the IRS. The only reason they suggest you keep track of how much they pay you is incase you are eligible for more next year.
@jezzikabret (245)
• United States
8 Apr 08
You're right it doesn't count or do anything to 2008 taxes but it will count against you in 2009. The IRS website didn't state that it wouldnt count against you in 2009...so just be careful. "Free" money isn't always really free.
The website that i got this from is put out by the goverment as well. Its a government/military newspaper. Talk to someone in the military about the newspaper, its legit.
1 person likes this
@stephcjh (38473)
• United States
7 Apr 08
Are you really sure about this because the governement has given us a prebate before and it never affected us like this that I am aware of. That would be awful if it happened that way. They gave us a rebate in the past though for the families who were living in a low state so ir may be different for this stimulous poackage. They are so tricky!
1 person likes this
@jezzikabret (245)
• United States
8 Apr 08
That was a much smaller tax break. This one coming up is for a much larger group of people and would cost the government way more if they just gave away all that money.
@icyorchid (2564)
• United States
24 Apr 08
No it isn't a prebate! This is free money! I have never heard that it is a prebate tax. The government can't do that to you without you knowing about it!
The link you put doesn't work either. Sorry
According to the IRS, http://www.irs.gov./newsroom/article/0,,id=179181,00.html
you will not owe taxes on your rebate when you file your 2008 income tax return. However, you should keep a copy of the IRS letter you receive later this year listing the amount of your payment. In the event you do not qualify for the full amount this year but you do next year, you will need to have the letter as a record of the amount you previously received.
http://usgovinfo.about.com/b/2008/02/27/will-i-have-to-pay-taxes-on-my-rebate.htm
@Angelwhispers (8978)
• United States
24 Apr 08
Yes jezzikabret, it just a repeat of what Bush did before, the money you get now will be deducted from your return next year. This is not really something they forgot to tell us, it just is what it is. Nothing is ever free.
@Angelwhispers (8978)
• United States
25 Apr 08
Well blow me down! LMAO LMAO Are you sure really? got a link for that information Tally?
@Angelwhispers (8978)
• United States
25 Apr 08
Wow Tally I think You might be right...here is one of the questions from the FAQ in that link you left
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.
@nova1945 (1612)
• United States
7 Apr 08
Sure, Bush did the same thing the last time he "gave" us free money. You have to claim whatever you get in that check as income on next year's taxes, and then get taxed on that. For some people it can completely adjust your income bracket upward and you ending owing more than you did last time. He thinks we are all just dumb taxpayers and will be so thankful to him that he "gave" us this rebate money.
It is just an advance on next year's tax refund.
@jezzikabret (245)
• United States
8 Apr 08
I completely agree with you. Its also very convienent that most people figure it out right after he gets out of office. Thanks for your response!
@carolscash (9492)
• United States
14 Apr 08
I heard something about this but the tax office here has assured me that we don't have to include this as income next year and that it won't effect our taxes next year. I hope that they are right. I don't want to have to pay taxes on it next year considering that they are giving it to me.
