Uh, now I think its becoming clear. Lets say my gross income for 2000 was $95,000. And my tax liability was $3700. But because of deductions and Itemizing, I received a refund because of overpayment. But it doesn't negate the fact that my liability was $3700. That $3700 will be used to calculate my rebate. Am I making any sense? ------------------ Everything you do, effects everything that is. [This message has been edited by mc mark (edited June 07, 2001).]
A refund from the government doesn't disqualify you from the rebate. Basically as long as the line on your 1040 that says Total Tax Liability has a number other than 0 on it you are getting a rebate of some type.
Straight from the IRS website: This year's advance payment will be five percent of the taxable income shown on the 2000 tax return, subject to the limits described above. This income amount is on: Form 1040 - line 39 Form 1040EZ - line 6 Form 1040A - line 25 TeleFile Tax Record - line K However, the payment cannot be more than the person's tax liability minus any nonrefundable credits. This amount is on: Form 1040 - line 51 Form 1040EZ - line 10 Form 1040A - line 33 TeleFile Tax Record - line K If a taxpayer's advance payment is less than the maximum dollar amount for his or her filing status, that person may be able to claim a credit on the 2001 return, up to the difference between the allowable amount and the payment already received. http://www.irs.gov/ind_info/apinfo/index.html ------------------
That is some accountant you have there mcmark. $3700 is what, 4% of that salary? And now you want an extra $300 refund? For shame. ------------------ Bingbong was set up, led to an untimely death in the prime of his life for no other reason than pure malice. Things like that do not go unavenged. Sometimes it spills out onto the field of play.
Sam they were numbers off the top of my head. I'm an artist, not a mathematician! ------------------ Everything you do, effects everything that is.
According to a friend who works for the IRS, mc mark is correct. If you recieved a refund or had no tax liability, you will not get a rebate. ------------------ The internet is about the free exchange and sale of other people's ideas. - Futurama
I don't think this is true. I had to send the IRS a check to cover capital gains I realized in 2000. If I hadn't had a capital gain, I'd have gotten a refund. By Jeff's reasoning, I'm supposed to get a rebate check, but I wouldn't get a rebate check if I hadn't sold stock and realized a capital gain. That can't be right.
Jeff I received a refund from the IRS but I still paid my fair share of taxes. I WILL be getting the $600.00 rebate. You have to have 0 tax liability in order to NOT get a rebate. Most Americans who received a refund on their 2000 taxes did have some liabaility. In addition, some folks actually get back MORE than they pay in if they use the Earned Income Credit. My only complaint is that they are mailing out the checks on a schedule based on the last 2 digits of your SSN. Mine is 98 so I get my check mailed on 09/21. ------------------
There is a huge difference between a tax refund and rebate. Whether or not you got a tax refund has nothing -- zip, zilch, nada -- to do with whether you'll get the $300 check. Your refund is simply the difference between the estimated taxes you paid during the year from your paycheck and the true amount that you owe. This can vary depending on how many exemptions you claimed as well as what your non-wage incomes sources are or if you paid additional estimated taxes throughout the year. Beyond that difference, your tax refund was for the year 2000. This $300 check if for taxes already paid (through your paycheck) for the year 2001 that you won't actually owe. What you paid or owed in 2000 is irrelevent except that they seem to be limiting the rebate to those who paid last year so they have accurate addresses and such. People who are paying taxes for the first time this year will simply get their $300 back built-in to their refund check or payment on April 15th. If you're going to owe any taxes throughout year 2001 -- that includes the taxes you're paying out of your weekly paycheck -- you'll get this check. If you've had any wages this year, a portion was deducted for income taxes. Some of that money will be returned to you later this year. If they wanted to simplify things, they could just return it to you with the rest of your refund but the theoretical and political goals are to get you the money sooner to help stimulate the economy and show you "hey, we're giving you money!". ------------------ http://www.swirve.com ... more fun than a barrel full of monkeys and midgets. <font color=white> [This message has been edited by shanna (edited June 07, 2001).]
You know, they won't take it. My grandfather actually asked to not be sent Social Security because he didn't need it and they wouldn't keep it. They said he HAD to take it. I had a friend who didn't want a $100 refund, but all they would do is apply it to his withholding the next year. The government has NO way of taking money and applying it to, say, the defecit. Stupid! ------------------ The internet is about the free exchange and sale of other people's ideas. - Futurama
Here is a primer on the federal tax rebate that will result from the tax cut signed into law Thursday by President Bush. Information comes from congressional offices and the U.S. Department of the Treasury. Who will get the rebate? Every American who filed a 2000 tax return is eligible. Those who had absolutely no tax liability (their tax bill was 0, or they got a rebate from the government) will not get a rebate check. In order to get the full amount of the rebate, a single taxpayer must have had at least $6,000 in taxable income for 2000. A married couple filing jointly must have had at least $12,000 in taxable income for 2000 in order to get the full amount. (see below) How much will the rebate check be? Most singles will receive about $300. Single parents will receive about $500. Couples will receive about $600. But some taxpayers will receive less. These figures are MAXIMUM amounts. No one will get more than these amounts. How is it calculated? The rebate is equal to 5 percent of a person's taxable income for the year 2000 with ceilings set at the figures above ($300 for singles, $500 for single parents, $600 for couples). That's why some people will get a little less. For example, someone whose taxable income (after deductions, etc.) gets down to $5,000 will only get a $250 check. And again, anyone with ZERO tax liability will get no check. Why is this check coming? The tax bill the president is signing immediately creates a bottom income tax bracket of 10 percent, effective retroactively to the beginning of this year. That means the first $6,000 of a single's income or the first $12,000 of a couple's income is suddenly going to be taxed at 10 percent (instead of the old 15 percent rate). Because this change is retroactive, the government will owe everybody who already paid some of those taxes (through withholdings from their paychecks from January until now) some money back. The Treasury Department points out that this is not officially a "rebate" ... it's an "advance payment" to taxpayers of money they would have gotten back from the government as a rebate when they filed their tax returns next April (for 2001). When will people get the check? The government will start sending out checks in late July. They will send out nearly 100 million (98 million) checks. The checks will go out over a 10-week period. The Treasury Department will use the last two digits of people's Social Security numbers to determine the order of mailing. Those with 00 at the end of their SS number will be first in line. Those with 99 will be last to get their checks. All of the checks to regular filers will go out before the end of this fiscal year, September 30. For late 2000 filers, there will be some checks that go out after September until December. When will people hear from the IRS? In mid-July, the Treasury Department says every taxpayer will get a letter informing them of the check that's coming. What do people have to do to get their check? Nothing. As long as a taxpayer filed a 2000 return, he is eligible. The Treasury Department says no one should call the IRS or the Treasury Department. They say the government knows where to find you. What about late filers? Those who filed for an extension and haven't filed a return for 2000 yet better hurry, according to a Treasury spokesperson. The sooner they file, the sooner they'll get the tax credit and therefore a rebate check. If they don't receive a check before December 2001, they would be able to apply the credit to next year's tax return, when they file next April. What if you've moved since filing your 2000 return? Taxpayers who've moved should file an official change of address form with their local U.S. Post Office. Is there a website where taxpayers can find out more about their checks? There is a website with lots of information -- www.irs.gov. It won't tell taxpayers exactly how much their check will be for, but it will tell people when the checks are going out. (The exact amount will come in that letter from the IRS in mid-July). On the IRS website there are fact sheets about general questions. Why am I not surprised that since I got a refund in 2000, that I won't be getting a refund? Typical ------------------ Everything you do, effects everything that is.
"Those who had absolutely no tax liability (their tax bill was 0, or they got a rebate from the government) will not get a rebate check." ------------------ Everything you do, effects everything that is.
I think, and I'm not at all sure about this, that they're referring to something other than the excess you paid in tax. I'm looking into it right now. I'm thinking they mean those 'taxpayers' who didn't actually pay taxes but did] receive checks from the government won't be eligible to get checks this time around. You know, the poor who are being so screwed by Bush's tax plan. EDIT: here's a link with more information... I don't know. It looks to me like I'm eligible here. In general, individuals who had a federal income tax liability for 2000 and who could not be claimed as a dependent on someone else's tax return are eligible for a 2001 advance payment this year. You had a liability if your tax was greater than the amount of your nonrefundable credits, such as the child tax credit, education credits or child care credit. Refundable credits - such as the earned income tax credit - are not a factor in determining eligibility or computing the credit or the advance payment. Nonresident aliens and those who could be claimed as dependents are not eligible for these advance payments. Those who did not have an income tax liability will not receive an advance payment. Individuals who did not have an income tax liability for 2000 but who have one for 2001 will be able to claim the tax credit on their 2001 return, provided they are otherwise eligible. Taxpayers whose advance payment is less than the credit amount figured on their 2001 tax return will be able to claim the rest of the credit when they file their 2001 return. Taxpayers whose advance payment is larger than the credit amount figured on the 2001 tax return will not have to pay back any difference. [This message has been edited by BrianKagy (edited June 07, 2001).]
I got a note about this from a co-worker couple of hours ago. I was jumping for joy until I read this post. Why is the fact that since I am getting a refund from the IRS makes me not qualify for a refund? I am a contractor, hence, I pay quarterly estimated tax. Just because I over paid (so that I won't get penalized at year end) my tax, I don't deserve a rebate? This is my reward for putting extra money in their pocket in the first place? What a load of crap!!!
Again, I think a rebate and a refund are different things. A rebate is a reward handed out to extremely low-income citizens. A refund is the amount you overpaid your taxes.
Brian, I will be the first to admit that I'm not to clear about how this will work. So you probably have a better understanding than I do about these matters (I've always sucked about money matters). ------------------ Everything you do, effects everything that is.
Well, just speaking generally, I think that at least 50 percent of all taxpayers got a refund last year. Probably more. There's no way they're all automatically ineligible for the rebate check because of it. I think the terminology's just unclear in the original piece you cited.
