Economic stimulus checks coming in May

[Joanna]

I received this email today...

Economic Stimulus Checks (I knew there was a catch.)

A lot of people are super excited about getting this extra money! This means $1800 more for my family this year...or does it? I was ecstatic when the government first announced it's plans to give this money a few weeks ago;  that was until I found out the truth about this money.
These "extra" checks are already YOUR money. They are just an advance on next years return.
So, let's say you receive $1500 in May of  this year (2008) next year (2009) when you file your tax returns and expect to receive $4600 back, you will only be getting $3100 because you were already given your other $1500 in May of 2008.
The government is doing this because they want everyone to spend this "extra" money quickly so it will boost the economy. This is basically a ploy to save their own asses by tricking us into spending our own money to make up for their mistakes.

For those of you who wish to read this information for yourself it can be found here.
http://articles.moneycentral.msn.com/Taxes/Advice/TheDetailsOnTaxRebates.aspx

That was the email, and the link goes to a news story. 
Did you know this?  It was a big surprise to me...  guess it's true that " you don't get somthin' for nothin' "  I wonder if I can change my withholding to take out less, so I won't loose it ~ It reads like if you don't have that much refund coming at the end of '08, you don't have to pay it back. 
I couldn't find anything on Snopes about it, probalby if I'd read the news closer or something I would have figured it out ~ or maybe there will be some "fine print" on the checks in May...  If any of you have more or better info, it would be nice to know.

[W. Gray]

Folks on Social Security or a VA pension were not eligible for the 2001 Bush rebate.

Those same people, however, will be eligible for the 2008 Bush rebate by filing a Federal income tax form 1040a showing the amount of Social Security and/or VA pension received for 2007. That amount has to be over $3,000, though.

Does not make any difference if you do not owe any federal taxes or are not due a federal refund. The 1040a form has to be filed to get your name in the queue. IRS has announced they will be issuing a modified 1040a with specific instructions but that any 1040a form will do.

[Joanna]

My friend Ruth just sent this info to me.  Since the link is the actual IRS website, it is likely more accurate than MSN.  HA!

"If you look for:

"Will the payment I receive in 2008 reduce my 2008 refund or increase the amount I owe for 2008?" 
       on the page, you will find that the answer is:
A. No, the stimulus payment will not reduce or increase your refund when you file your 2008 return.
In fact, from what I'm reading here, it isn't even considered taxable income for next year.  ...
http://www.irs.gov/newsroom/article/0,,id=179181,00.html

[frawin]

I am sure the Chineses are really pleased about the economic stimulus package the Federal Government is going to give out. Since the Chinese are the number one supplierog goods  to the US they will benefit the most.
Frank

[Wilma]

I have already filed my 1040 showing my income including my social security income.  Is there any reason I need to file a 1040A?  I didn't owe any income tax and file only because of the pension and rent I receive.  I file the state return because of the food sales tax refund that everyone is eligible for.  Does this information say anything about filing the 1040A only if you don't have to file the 1040.

[Bonnie M.]

Wilma, I found this "on-line."

Already filed?

Taxpayers who already filed a return do not need to do anything else.

However, if you filed a return but reported less than $3,000 in income, you may need to file an amended return to be sure your qualifying Social Security or veterans' benefits are counted.

"Adding these benefits on an amended tax return will not increase an individual's tax liability but will establish eligibility for the stimulus payment," the IRS said. See this IRS statement for more details.

[Wilma]

I just finished reading the article Joanna referred us to and with your information, I am pretty sure I am all right.  I am going to go check my copy to be sure.  I am sure looking forward to my $300.00 but I am not going to spend it until it is in the bank.  There's many a slip betwixt cup and lip.

[Wilma]

OK, I am safe.  I wasn't considering my social security.  The article says that people that receive social security need to show that it is over $3,000.00.  If my social security weren't over that amount I would be in the poor house instead of living independently.

[Bonnie M.]

"There's many a slip betwixt cup and lip."

I like that!

[Rudy Taylor]

The rebate depends on your 2007 income, but it is actually a rebate toward your 2008 taxes. According to the proposed plan, in 2008, taxes would be cut from 10 percent to zero percent on the first $6,000 dollars of taxable income for individual taxpayers.

So, you need not worry about your 2008 taxes (the ones you will pay on April 15, 2009) going up in order to pay for this rebate business.

It's like a one time tax cut for 2008, but you get the rebate now instead of waiting to file your 2008 taxes. Because this is an advance payment on your 2008 taxes, your refund next year could be more (or less!) depending on your 2008 income.

I like Frank's comment about the Chinese.  I hold the same opinion about Wal-Mart.  Heck, they're the ones who will benefit the most from all these checks, and they don't even need stimulating.