Tax rebate - more info

[asterroc]

Here, finally, is the part I care about.

Do I have to pay the rebate back?

No. And here's why.

Your rebate is a one-time tax cut - an advance on a credit you'll receive on your 2008 return.

It's based on your 2007 income initially. If it turns out that your 2008 income and number of children would have qualified you for a larger rebate than the one you received, you'll be sent the difference. If it turns out your 2008 income was lower than in 2007 and you should have gotten a lower rebate, you get to keep the difference.

"If you were supposed to receive a larger payment than you did, you will get the extra money," said Treasury spokesman Andrew DeSouza. "If you received more than what you should have gotten, you will not be penalized." [CNN]

Comments

[meredithanne42.livejournal.com]

After deleting twice, you know, I think I'm going to stop trying to understand all of this at 9 in the morning!

[zandperl.livejournal.com]

Hee. :) Go back to sleep!

[oh-chris.livejournal.com]

so.. um... i think i understand it? you don't have to pay it back, but you'll get $600 less on your tax refund next year? so if you were due to get back $700 from your 2008 taxes, you'll get $100, but if you were due to get back $500, you won't get anything but won't have to pay?
i think?

[zandperl.livejournal.com]

That's how I'm understanding it.

Edit: So does that mean we should have too much taxes taken out of our 2008 paychecks, or too little in order to best take advantage of that?

[oh-chris.livejournal.com]

well, that sucks ass.
i'm torn too. if we take out too much, the government gets an interest-free loan. if we take out too little, we could end up owing money.