Tax Rebate or Prebate?

[Monty]

In reference to Bruce's poll about how "Where will your tax rebate go?"
http://www.penturners.org/forum/topic.asp?TOPIC_ID=33199

You do realize that this is not a rebate but a PREBATE on next years income tax, don't you?
http://articles.moneycentral.msn.com/Taxes/Advice/TheDetailsOnTaxRebates.aspx

 

[cowchaser]

I read that also and to be honest I would much rather get it next year. I already have to pay this year. I can only imagine what this will do to me next year. Oh, well I guess they don't give me much of a choice on it.

 

[turned_for_good]

I had heard that too but its not quite true.
http://www.opencongress.org/articles/view/418-Stimulus-Bill-Misconceptions

Here is the actual bill text
http://thomas.loc.gov/cgi-bin/query/C?c110:./temp/~c110fUSQ3j

The pertinent text to this is about half way down and states:

d) Refunds Disregarded in the Administration of Federal Programs and Federally Assisted Programs- Any credit or refund allowed or made to any individual by reason of section 6428 of the Internal Revenue Code of 1986 (as amended by this section) or by reason of subsection (c) of this section shall not be taken into account as income and shall not be taken into account as resources for the month of receipt and the following 2 months, for purposes of determining the eligibility of such individual or any other individual for benefits or assistance, or the amount or extent of benefits or assistance, under any Federal program or under any State or local program financed in whole or in part with Federal funds.

 

[Tonto]

Interesting twists, regardless our pals in DC are sending out money they don't have and we will all eventually pay for it one way or another. Send your kids and grandkids a thank you as this is on them. Interesting timing too. Any of us would be in jail or bankruptcy court if we managed our money this way.

 

[stevers]

My rebate, (if I get one) will go to pay this years taxes due. So it backfires on me, but they get their money back.

 

[gmcnut]

A lot of this is just plain old redistribution of monies. Many getting these funds didn't pay anything or paid very little in taxes in the first place.[:0]