 |
04-23-2008, 07:44 AM
|
#1
|
Recycles dryer sheets
Join Date: Dec 2006
Posts: 427
|
2007 tax rebate question
Since, from what I read, this rebate was estimated using 2007 income even though it was going to be for 2008, if you exceeded the 2007 income limits, but you don't exceed the 2008 income limits, will still get this money when you file a 2008 return?
In other words, your tax would be reduced $600 when you file next year. Is this correct?
Thanks.
JD
|
|
|
 |
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!
Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!
You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!
|
04-23-2008, 07:56 AM
|
#2
|
Thinks s/he gets paid by the post
Join Date: Jun 2006
Location: Central, Ohio, USA
Posts: 2,632
|
No!
__________________
Vietnam Veteran, CW4 USA, Retired 1979
|
|
|
04-23-2008, 08:57 AM
|
#3
|
Recycles dryer sheets
Join Date: Dec 2006
Posts: 427
|
This is the article I was referring to...Sandra Block (USA TODAY)
TAXES
Myth: Because I'm getting a tax rebate this year, my 2008 tax bill will be higher.
Reality: No, it won't.
Starting next month, more than 130 million taxpayers, senior citizens and disabled veterans will receive rebates ranging from $300 to $600, or $1,200 for married couples who file jointly. Parents with dependent children under age 17 will be eligible for an additional $300 per child.
Technically, the rebate is a credit based on your 2008 taxes. To get money into consumers' wallets more quickly, though, Congress decided to calculate the rebate using taxpayers' 2007 returns, says Mel Schwarz of the accounting firm Grant Thornton.
If it turns out you're due a larger credit, you can claim it when you file your 2008 tax return. And if your rebate was too large? No worries: You won't have to give the money back.
Surveys suggest that taxpayers will be more likely to save their rebate or use it to trim debt than to spend it. But whatever you do with the money, don't worry about setting aside a portion of your check for the IRS. The rebate won't be treated as income when you file your 2008 return, Schwarz says.
|
|
|
04-23-2008, 09:32 AM
|
#4
|
Recycles dryer sheets
Join Date: Mar 2008
Location: Washington, DC
Posts: 75
|
Yes, but if you exceed the 2007 income limits, then you essentially get nothing and you can't deduct it on your 2008 taxes either.
|
|
|
04-23-2008, 10:27 AM
|
#5
|
Thinks s/he gets paid by the post
Join Date: Jan 2006
Posts: 4,172
|
Quote:
Originally Posted by JohnDoe
This is the article I was referring to...Sandra Block (USA TODAY)
Technically, the rebate is a credit based on your 2008 taxes. To get money into consumers' wallets more quickly, though, Congress decided to calculate the rebate using taxpayers' 2007 returns, says Mel Schwarz of the accounting firm Grant Thornton.
If it turns out you're due a larger credit, you can claim it when you file your 2008 tax return. And if your rebate was too large? No worries: You won't have to give the money back.
.
|
I have seen similar things on the fairmark.com forum so I'm guessing this is true.
|
|
|
04-23-2008, 11:16 AM
|
#6
|
Thinks s/he gets paid by the post
Join Date: Jun 2006
Location: Central, Ohio, USA
Posts: 2,632
|
My response in #2 may be all wet. This from the IRS Web Site (Google "Irs Rebate" and read the FAQ's):
Q. I don’t qualify for a Stimulus Payment based on my 2007 return. But my tax situation will be different in 2008. Will I qualify for any special benefit?
A. Possibly. The 2008 tax instructions will include a worksheet to help those who did not qualify for a payment or those who received a reduced amount determine if they can obtain a benefit when they file their 2008 tax returns next year.
__________________
Vietnam Veteran, CW4 USA, Retired 1979
|
|
|
04-23-2008, 11:25 AM
|
#7
|
Dryer sheet aficionado
Join Date: Oct 2007
Posts: 34
|
Quote:
Originally Posted by sarahsays
Yes, but if you exceed the 2007 income limits, then you essentially get nothing and you can't deduct it on your 2008 taxes either.
|
For those with high incomes and mortgage loans above $417K but below $729,750, there was a nice little gem added to the Economic Stimulus Act of 2008.
Economic Stimulus' Biggest Real Estate Winners
|
|
|
04-23-2008, 11:29 AM
|
#8
|
Recycles dryer sheets
Join Date: May 2005
Posts: 192
|
My understanding is that if you do not qualify in 2007, but you otherwise would qualify in 2008 (or you would otherwise qualify for a larger rebate in 2008), you get the difference after filing your 2008 return. However, in the opposite situation (you qualify in 2007 but you would not qualify in 2008) you will not be penalized.
Someone let me know if my understanding is incorrect. I'm expecting hoping to get an additional $300 after filing my 2008 return because I have a child that was born in Jan. 2008. I can't claim her for 07 but I can in 08.
|
|
|
 |
Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
|
|
Thread Tools |
Search this Thread |
|
|
Display Modes |
Linear Mode
|
Posting Rules
|
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts
HTML code is Off
|
|
|
|
» Recent Threads
|
|
|
|
|
|
|
|
|
|
|
|
|
» Quick Links
|
|
|