http://www.consumerismcommentary.com/2008/...08-tax-returns/ http://www.sfgate.com/cgi-bin/article.cgi?...2/BUOAV0BJP.DTL Is this accurate? If so, the government completely misled the American people.
Well this is reading as though it's not "more money in your pocket" but rather an advance on money you would have gotten anyway when you filed your 2008 taxes. Hypothetical example with easy numbers: I get a return this year of 2000 on a joint married return. I get a $1200 economic stimulus check that the government is saying should be spent spent spent. Next year, (assuming all money stays the same and tax brackets, etc.) I now get an $800 return? For people who plan on their returns to pay off debts or to make up their 401(k) or IRA contributions, the government spinning this as money they want you to blow can be damaging.
His argument (I believe) is that there is a key pharse missing at the end of the following quote: A: It will not impact your 2007 refund. Your 2008 refund might be smaller than what you calculate on your return because you have already received the refund in advance, Luscombe says. But it still represents more money in your pocket. ... NOW that you might have received this same time next year IF you were slated to get a refund. It is essentially a 0% interest loan against a future refund.
Ok, after doing some research this may be a case of two sources just unintentionally misleading due to word choice: About.com has this to say: Here's more from that one link you had: http://www.consumerismcommentary.com/2008/...08-tax-returns/
It is a new tax credit for 2008. The government is paying you now instead of waiting for 2008 to get it. So it is a loan against future refund, but it is more money in your pocket, since the credit is new to the stimulus program.
That's not accurate actually. Like I said, this was just a case of two poorly worded articles. From the IRS website:
"To summarize, the rebate that will be sent out in May 2008 is a credit to the taxes you’ll owe on 2008 income, but it is a new credit, so you don’t have to “pay it back.” its from your own link... a new credit paid in advance.
According to the IRS it has no impact on your 2008 return whatsover unless your 2008 income would have qualified you for a larger stimulus check.
