February 14, 2008

Tax Rebate Truth Comes Out

I, as well as everyone else, has been wondering just where we are going to end up paying for those tax rebeats we will be getting in the mail this summer.

It's not a rebate per say, but it really is an advance on your 2008 taxes.

But filers will have to reconcile any money they receive this year when they file their 2008 returns.

"It harks back to the 2001 situation when we got the new 10 percent bracket and got an advance check for that. Then on next return had to account for it," says Luscombe. "It's expected to be that way this time."

The 2008 tax forms should have a line for the new credit. When calculating taxes next year, taxpayers will have to subtract what they got as a rebate check the previous summer.

"Some people might think that's unfair," says Luscombe, "but they got the money, and they got it early."....

Because the law is technically an advance credit on 2008 taxes(emphasis mine)

So it's just the government loaning us money as a speculation of what we would receive back for our 2008 taxes.

But what happens if you never recieve money back from your taxes? The article doesn't explain that situation.

Posted by Quality Weenie at February 14, 2008 01:28 PM | TrackBack

I haven't paid attention so I didn't know this... thanks for posting it! A loan... as long as they're not charging interest! But what if I don't want it right now? Geez...

Oh, and Happy Valentine's Day...! :)

Posted by: pam at February 14, 2008 02:48 PM