Be Careful About Spending That Tax "Rebate" Check!

[Laurel]

http://rockymountainnews.com/drmn/business/article/0,1299,DRMN_4_754516,00.html

The tax-relief checks that will start arriving in mailboxes next week don't have a consumer-warning label, so we're happy to provide one.

Warning: This check is not a "rebate" of taxes you already paid. It's an advance on the refund you'll get when you file next April.

If it's an advance, you ask, does that mean my refund in April will be $300 smaller than it would have been? And if I'm unlucky enough to owe taxes, does that mean my tax bill will be $300 higher?

The answer to both questions is yes.

 

[KillerMuffin]

Laurelly is correct. www.irs.gov if you want the scoop straight from the horse's mouth.

 

[Simply Me]

Why am I not surprised. Heaven forbid the government give us anything without some kind of stipulation attached.

 

[SweetNick]

This is STILL a rebate. Its a rebate on the taxes you've paid for this year up until the bill was made into law. Grant it, you won't be getting the huge rebate check come next year, it'll be a bit smaller, that's all. The purpose of the rebate now is to help stimulate a stagnant economy. Some people will choose to pay of already existing debts with the rebate, but the government is hoping, as are most businesses that the rebates will be used to buy things thereby speeding up the recovery process.

 

[morninggirl5]

Bad news always comes in 3's right?

Thanks, got number 3 out of the way and still have 6 hours of the day left to enjoy.

 

[lobito]

it's for this precise reason...

that I will be using the money while I'm on vacation OUTSIDE the U.S.

This is deceptive practice by the Government, (Read BUSH), calling it a rebate, and not telling you or letting you know until later that it's to be used against next years taxes.

A rebate is for something you've already paid for, NOT what you'll be paying for next time around. This is complete and utter BULLSHIT!

Way to go BUSH! DUMBFUCK!

Lobito

 

[Harpoon]

Maybe the private sector could take a lesson here... Give rebates to people hoping they will buy their product... Do you see any flaw in that? LMAO

The only reason it works for the gov is because they know they will get theirs... as always.

 

[Laurel]

This is STILL a rebate. Its a rebate on the taxes you've paid for this year up until the bill was made into law. Grant it, you won't be getting the huge rebate check come next year, it'll be a bit smaller, that's all. The purpose of the rebate now is to help stimulate a stagnant economy. Some people will choose to pay of already existing debts with the rebate, but the government is hoping, as are most businesses that the rebates will be used to buy things thereby speeding up the recovery process.

A rebate, I believe (and I could be wrong), is usually the return of money already paid - i.e. I buy Norton Antivirus, then fill in a coupon to receive a partial REBATE of the purchase price. This tax money is aactually an ADVANCE of money not yet paid. Two entirely different animals. I think a lot of people will be surprised to find this out. Pretty sneaky semantic game the government's playing, eh?

25% of taxpayers won't be receiving the advance/rebate/refund/whatever. Of those who do, hardest hit will be families with children, because those who get child tax credits won't get the maximum rebate. There was a story in our local paper
(http://www.nctimes.com/news/2001/20010721/51639.html)
that featured the family of a Camp Pendleton Marine who were expecting to get the full $600 and instead got $69 - partly because they claim child tax credits. So the families that could really use the money to buy their kids back-to-school clothes won't be getting it.

 

[WriterDom]

If you didn't pay in, you don't get a rebate. It's not an income redistribution program like the earned income credit.

 

[miles]

Laurel

25% of taxpayers won't be receiving the advance/rebate/refund/whatever.

Meanwhile almost half of Americans pay no tax.

Of those who do, hardest hit will be families with children, because those who get child tax credits won't get the maximum rebate. There was a story in our local paper

That is incorrect. Anyone with a child under 18 gets the tax credit. I did and I'm getting $600.

 

[SweetNick]

A rebate, I believe (and I could be wrong), is usually the return of money already paid -

You have paid taxes this year correct? You have federal income taxes taken out of your check. Therefore the money you got back was from those taxes already taken out this year. Though mom still helps with my tazes, i Do believe that when I file next year, I'll be filing for income earned this year, including the previous 6+ months.

 

[beckbabe]

To me, it's found money...every time.

 

[Bigdog]

Too late

I already spent my check. Spent it on all sorts of stupid stuff like vet bills, groceries, and truck registration.

The funny part was getting a letter on Friday telling me how much the check would be, then getting the check on Saturday.

How much you will get is determined by last year's tax liability, not by how much you gave/got back. I took the child tax credit and got a check for $600 (married) but that is because after the child credit I still had a huge tax bite. <insert dog joke>

There's STILL no such thing as a free lunch. But since they didn't ask me if I wanted a check and sent it anyway, I spent it like it was my own money.

 

[cymbidia]

I never get any money back from the government at tax time.
I always pay money to the government at tax time.
My street still has a big hole in it.
Bah humbug.

 

[Guest]

What made my day a couple weeks ago was getting a cheerful letter from the irs informing me that I would not be eligable for a tax rebate. Really not unexpected because I didnt work at all last year.

Well the catch is that although it came from the irs, there was no invoice attached. None. Anywhere. I got mail from the irs and I didnt end up owing anything. A memorable event in itself. And are there any guesses as to where the cost of mailing that letter came from? Bwahahaha

-Aranian

 

[Siren]

And this is a surprise because?

 

[WriterDom]

http://rockymountainnews.com/drmn/business/article/0,1299,DRMN_4_754516,00.html

The tax-relief checks that will start arriving in mailboxes next week don't have a consumer-warning label, so we're happy to provide one.

Warning: This check is not a "rebate" of taxes you already paid. It's an advance on the refund you'll get when you file next April.

If it's an advance, you ask, does that mean my refund in April will be $300 smaller than it would have been? And if I'm unlucky enough to owe taxes, does that mean my tax bill will be $300 higher?

The answer to both questions is yes.

No, the answer to both questions is no. Without passage of the tax bill, the 300 dollars would be in the government's pocket and you would never see it. As of July 1, everyone is paying less tax on top of the rebate. It would be great if the rebate went back to 2000, but that's a little too much to expect.

There are plenty of self employed people who have to make quarterly payments to the IRS during the year. To them, it's a true rebate. I really don't understand the point of this thread. If the rebate did go back to 2000, singles would be getting 900 and married couples would get 1800. Would that make the liberals happier?

 

[Guest]

My 600 is already invested. Not in the market which is still struggling to reach pre-election levels. Another one of Bill's legacies. Like letting Conditit get by with murder, since he's in congress and it is his PERSONAL business.

 

[floridaguy64]

Re: Laurel

25% of taxpayers won't be receiving the advance/rebate/refund/whatever.

Meanwhile almost half of Americans pay no tax.

Of those who do, hardest hit will be families with children, because those who get child tax credits won't get the maximum rebate. There was a story in our local paper

That is incorrect. Anyone with a child under 18 gets the tax credit. I did and I'm getting $600.

ACTUALLY......................THAT TOO IS INCORRECT..............

I have 2 boys at home, four and 12 and I got my notice from the IRS last week.................I will get a check for the amount of (DRUM ROLL MEASTRO, IF YOU PLEASE) $0.00, zip, nada !!!!!!!!

And I don't apply for any extra credits either, just my standardized deductions....................so forget about telling me that I will be getting anything in the form a a tax rebate check just because I have children under the age of 18 at home.