Rebate implications for next year?

So what is the actual implication of this rebate check the government will be sending out next year? This has to have some effect on your bill or refund next year if this is just an advancement of a credit that was going into effect next year.

In other words, for example, if someone has a steady income over the past year and next year and gets a refund of $1000, how does the rebate check coming this year as the so-called "economic stimulus" effect your taxes next year? Do they remain the same? Does it go up or down (amount of taxes owed or amount of rebate)?

Assuming all your income remains identical, what does this mean for next year? Just curious...........................

Just following up - is anyone here aware of how this years rebate effects us next year?

Just following up - is anyone here aware of how this years rebate effects us next year?

The checks that will be in the maill in May 2008 are an advance on a tax credit on your 2008 tax return.

The amount of the credit you will receive during 2008 is determined from information on your 2007 tax return.

The credit books will be balanced/justified when we file our 2008 tax return about 1 year from now.

After filing your 2008 tax return, it is determined you received too large an advance of this tax credit, you do not need to pay the excess back.
If you received too little credit during 2008, and you should have more coming based on the facts on your 2008 tax retrun, you will receive the excess.

Here is a link to Kim Kiplinger's column on this subject: http://www.kiplinger.com/columns/ask/archive/2008/q0210.htm

great... so I pay the IRS 20K and I get 1.2K back..... how generous!!!

Rock33,

I don't know how much tax you paid on your 2006 earnings, but I do know you did not get a $1,200 tax credit.

I hope you understand this $1,500,000 rebate program is being paid with borrowed funds. This loan will need to be paid back in future years.

Tell your representatives in Congress what you think of the program, they are the folks that made this rebate possible. Here is the address for e-mail or snail mail to YOUR representatives in Congress: http://www.visi.com/juan/congress/

So we don't have to pay the rebate back next year, but in several years down the road? I think this is a bad way to spur on the economy, and I don't feel it will even work in the short-term.