Question about tax rebate?

03-01-2008, 09:15 PM

Wait a minute-I'm confused. HOW does this affect next year's tax return? Wouldn't it just be that, say, if you get a $1200 rebate this year, you'll have to claim it as income next year, right? But it doesn't actually get DEDUCTED from next years refund, does it?

Let's say, hypothetically, I get a $1000 tax refund this year, AND a $1200 rebate. Then next year, I'll claim the $1200 rebate as income (I guess?). But let's say I should get a $1000 refund again next year. I don't have to take the $1200 that I got this year off of my refund for next year and actually OWE money, do I?!!!

03-01-2008, 09:53 PM

Catlover, I heard that too, but I *think* it's just that you have to claim it as income.

Tink · 03-01-2008, 11:20 PM

No, sadly, as a "rebate" this is simply an advance on your next years tax refund. You don't get a freebie from Uncle Sam... it's simply a way for the current administration to make people feel they're getting a nice bonus now, so next year IF the democrats are sitting in the White house, the republicans can look good in comparison when people realize they're going to be getting that much less back next year.

You WILL lose that $1200 off of next years refund, but if you have only $1000 due to you, that $200 difference is not going to be owed... they will forgive that.

Janet · 03-02-2008, 04:16 AM

See how well our wonderful Tink explains things? I would love to have her elegant way of explaining things so simply. Love ya Tink!!

pearl · 03-02-2008, 07:15 AM

thanks tink, i did not know that at all about it affecting next year. luckily, next year will be the year i don't claim my daughter (her dad will) and i always owe in those years, so looks like the timing is good for me!!!
that's pretty sneaky of the government to not make that clear.

03-02-2008, 08:16 AM

Wow! Really? Man, I am going to put it in a CD then and not spend it, lol. Next year is finally the year that we will get a tax return because my husband isn't doing that job as a subtractor anymore. I don't want that to get messed up because of that rebate.

Tink · 03-02-2008, 08:44 AM

Thanks Janet! Right back at ya!

Sounds like a good plan Gwen...

03-01-2008, 11:20 PM	#3
Tink Donating 4WT 2000 Club Member Join Date: Sep 2006 Location: Rural Wisconsin Posts: 3,707	No, sadly, as a "rebate" this is simply an advance on your next years tax refund. You don't get a freebie from Uncle Sam... it's simply a way for the current administration to make people feel they're getting a nice bonus now, so next year IF the democrats are sitting in the White house, the republicans can look good in comparison when people realize they're going to be getting that much less back next year. You WILL lose that $1200 off of next years refund, but if you have only $1000 due to you, that $200 difference is not going to be owed... they will forgive that. __________________ 'A simple way to take measure of a country is to look at how many want in.. And how many want out.' England 's Prime Minister Tony Blair' Last edited by Tink; 03-01-2008 at 11:23 PM.

03-02-2008, 04:16 AM	#4
Janet Moderator Donating 4WT 18K Club Member Join Date: Sep 2006 Location: INDIANA Posts: 21,625	See how well our wonderful Tink explains things? I would love to have her elegant way of explaining things so simply. Love ya Tink!! __________________ To every thing there is a season, and a time to every purpose under the heaven. ECCLESIASTES 3:1

03-02-2008, 08:44 AM	#7
Tink Donating 4WT 2000 Club Member Join Date: Sep 2006 Location: Rural Wisconsin Posts: 3,707	Thanks Janet! Right back at ya! Sounds like a good plan Gwen... __________________ 'A simple way to take measure of a country is to look at how many want in.. And how many want out.' England 's Prime Minister Tony Blair'

03-01-2008, 09:15 PM	#1
catlover Guest Posts: n/a	Wait a minute-I'm confused. HOW does this affect next year's tax return? Wouldn't it just be that, say, if you get a $1200 rebate this year, you'll have to claim it as income next year, right? But it doesn't actually get DEDUCTED from next years refund, does it? Let's say, hypothetically, I get a $1000 tax refund this year, AND a $1200 rebate. Then next year, I'll claim the $1200 rebate as income (I guess?). But let's say I should get a $1000 refund again next year. I don't have to take the $1200 that I got this year off of my refund for next year and actually OWE money, do I?!!!

03-01-2008, 09:53 PM	#2
Gwen Guest Posts: n/a	Catlover, I heard that too, but I think it's just that you have to claim it as income.

03-02-2008, 07:15 AM	#5
pearl Senior Member Join Date: Feb 2008 Location: Colorado Posts: 207	thanks tink, i did not know that at all about it affecting next year. luckily, next year will be the year i don't claim my daughter (her dad will) and i always owe in those years, so looks like the timing is good for me!!! that's pretty sneaky of the government to not make that clear.

03-02-2008, 08:16 AM	#6
Gwen Guest Posts: n/a	Wow! Really? Man, I am going to put it in a CD then and not spend it, lol. Next year is finally the year that we will get a tax return because my husband isn't doing that job as a subtractor anymore. I don't want that to get messed up because of that rebate.

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