2008 Tax Rebates

[lsowers]

Now that it seems imminent that the tax rebates Bush has been talking about will be pushed through, has anyone noticed if these will be an Advance (like the prior one) or will this be an actual rebate (not to be repaid through the 2008 tax return)?

Of course I know we are still paying for it (it is not free money like some people think).

Thanks

[BulldogTom]

That is the question.

I don't want to go through the advance payment on 08 taxes route. It was a nightmare the last time and ticked of more people.

Don't forget the time they changed the withholding tables mid year to get everyone a bigger paycheck, then we had to explain why they had no refund at the end of the year.

My sense on this is it will be a true tax giveaway. The only thing to decide is the amount. The public will see through a smokescreen like the advance refund. There is so much more media coverage and analysis of anything the government does that any gimmick will be exposed for what it is, and the pols cannot afford to tick off the voters until after the election in nov. Since the white house and congress, dems and reps are all behind this, I am thinking it will be a giveaway.

Just my (not so) humble opinion.

Tom

Lodi, CA

[GeneInAlabama]

What I'm wondering is how they are going to handle this? Do we claim it on the 07 tax return or will IRS just mail everyone a rebate? Are their computers capable of filtering through all the tax returns filed and determine who gets how much. How will they know who earns at least $3,000 but do not earn enough to file a return? If we claim it on the 07 return, will those who have already filed have to file an amended return and how long will it take the IRS to get the new forms out? Maybe I have missed something, but I haven't seen anything saying how they are going to do this. It looks like a terrible nightmare coming. Maybe all the smart people in government have it all worked out! I have my doubts.

Gene

[BulldogTom]

From reading the news just now, what they are looking at is agi + filing status + # of Child tax credits. I am sure they can run a query to get those classes of tax filers.

We should see the HRB commercial by tonight that says come in and file a return even if you don't have to because you don't want to miss out on your rebate. And if you can't afford to pay us, thats all right, we will set you up with a loan.

I am wondering if taxpayers can double dip. What if you are a dep claimed on parents return and parents get the additional 300 for you. Will you get the 300 also if you made 3500? I think that will be the tricky part.

I wonder if my kids are going to get the 600. The article says "Individuals who pay tax" will receive $600. My kids are paying tax this year (Kiddie Tax) because I sold some stock for them early in the year. So they will be "individuals who pay tax". I wonder if my kids are going to make out like a theif this year?

It is going to be interesting.

Tom

Lodi, CA

[Bart]

Maybe all the smart people in government have it all worked out! I have my doubts.

Gene

I think that is a silly notion - smart people in government

[GeneInAlabama]

Yeah - I guess you're right. I guess I got carried away there for a moment.

[Mel in Hawaii]

Just another 'loan in disguise' if you ask me... Any time the government pays out something, it's taking out a loan that we as taxpayers will have to repay. If I wanted to borrow some money, let me do it.

[mcb39]

Just another 'loan in disguise' if you ask me... Any time the government pays out something, it's taking out a loan that we as taxpayers will have to repay. If I wanted to borrow some money, let me do it.

.....and every other person who calls asks about it. How smart do we look when we have to say that we don't know? Oh, and everyone has a different figure as to how much they "should" get. Thank you Mr. Government....

[joanmcq]

And, like I need a loan on my tax. I'm having extra withholding taken out of my paycheck to cover all my other income and I need a 'refund'???

[JohnH]

Don't forget, anyone who doesn't think they should receive a rebate (or thinks they don't deserve it) has the option of sending it back. It will be applied directly to the national debt AND it qualifies as a contribution deduction. Be sure to communicate this to your clients - I always explain it to anyone who complains to me about tax reductions or rebates, or in any way expresses that they think they are not paying enough in taxes. I'm going to keep some preaddressed envelopes ready for them, although in the past no one has ever asked for one after I showed them this very practical way to put their stated convictions into action.

Anyhow, I think it's likely that if the next election goes they way lots of pundits are predicting, the Federal Government will take it all back, plus a hefty chunk more. And that won't be a one-time adjustment.

[Pacun]

"Are their computers capable of filtering through all the tax returns filed and determine who gets how much".

You guys use computers and ignore how powerful computers are. In 5 years, computers will be able to audit each return every 5 years as stated by some IRS employees. Do you know how much the IRS software programs cost? Don't you think that it is capable of doing queries much better that MS word? If you get the bible on your computer and you want to find out how many times the word Jesus is mentioned on the bible, the computer will do it in seconds or less. A better program will do numerical queries much better.

[taxtrio]

We still have a lot of quesitons, and no answers. There won't be any answers (what we need to know) until they actually pass something through congress.

From what they are saying on the news, it is supposed to be automatic. The IRS will figure what they should get, and sent it in well, they say, about 10 weeks after they pass the bill (whatever it is). The feeling I've gotten from information I've seen is that it will probably be based on last years returns; (2006 tax return). But we'll have to wait and see.

And if you notice they are saying people will get a "maximum" of so much and it will "phase-out" at a certain income level. So people are probably not going to get what they think... just like last time. I'm taking a waiting attitude, "it ain't over until the fat lady sings" as they say.

So I just keep reminding people, "they haven't passed anything yet". MTF (more to follow) as my old boss was fond of saying when she didn't have the answers.

I still have freinds that work at the big green box, and last Saturday they already had people walking in the door asking "where is my check??" Ahh Clients, they never change!!

[lydia33]

We all will just wait and see. However it is handled we know who will have to deal with it and explain to Mr. and Mrs. Joe Taxpayer all the bad points that go along with the rebate. Just hope I get one this time. Heard something about the small business person, too. That's me. I'll take that also. Anyway wait and see and tell clients that all you know for sure is it has not anything been put in stone.

[Byron]

Most of my clients know better than to ask me.

If any do, I'll say "when you get a check in the mail you'll know how much you're getting."

[Byron]

Check out this explanation:

http://www.nola.com/news/t-p/frontpa...800.xml&coll=1

which includes:

Q: Why do some people call these payments "prebates"?

A: Because they're technically going to be credits based on tax year 2008. The government doesn't want you to wait until 2009 to get this money, so it's issuing checks now.

Q: Since tax year 2008 just started, how will the government decide who is eligible for income purposes?

A: The government will go by the returns filed this spring for tax year 2007.