OT-possible tax rebates for us Americans.

[livie1205]

I never agree with pres. bush (and i am republican) but I do like this idea but i dont know about the 110,000 limit, I do not make that much but people that make more than this pay plenty of taxes...now if you dont pay taxes you should not get money back.

 

[vellamint]

I do not support this plan at all. I agree with most of the statements above. Clearly the money has to come from somewhere. From what a previous poster said it will be those making more than $110,000. When is the government going to realize that families living in expense areas are not rich if they are making above $100k?

HERE HERE - I totally agree with you since I live in LONG ISLAND NY and we are being SQUEEZED and TAXED to DEATH!!

 

[dvcgirl]

I just can't help but note the irony that the same government officials who complain that Americans aren't saving enough for the future are now crying that Americans aren't spending enough so let's send them more money to blow at the mall. You can't have it both ways. Either people will be responsible, live below their means and save for the future, or people will spend every penny they get their hands on and then some, living paycheck to paycheck and racking up debt.

Sending out these checks, the folks who are living paycheck to paycheck already will likely spend it. The folks who are savers will save it. And the end result will be not much of anything will change.

The 3.5 million people at risk of losing their homes to foreclosure are not going to be bailed out by $800 or $1,600. People with 10K and more in CC debt aren't going to make a dent with $800 or $1,600.

This is election-year politics basically.

I'm still fuzzy on these numbers. $800 per worker...what are there, 200 million workers in the US? That's what?.....1.6 Trillion? They're talking about a 150 Billion package.

I'm guessing it's like we're thinking...that this is just some kind of advance on future tax refunds, or something like that. There's no such thing as a free lunch I suppose.

Just an FYI....This is the worst start for the US Stock Market in any year....ever. Yikes....

 

[madge]

IF we even get one, we will be putting it towards the downpayment for our NEXT cruise likely in 2010.

we are wise

I figure, if it comes in June ... that's 8 months to earn some interest before the rest of the refund comes. LOL!

 

[DianeV]

I'm not sure some of you are understanding this correctly

When they did it in 2001 yes we 'gave' it back the next year but it was an additional credit that was added to what you were already getting back. It wasnt 'including' what you were already getting back

In other words I think you didnt have to 'take' the credit early from what I remember and then you got it the next tax year. If you had already 'taken' it you just didnt claim it and get it in ADDITION to your regular refund

We NEVER had it taken out of our regular refund..it was additional

 

[dvcgirl]

I'm not sure some of you are understanding this correctly

When they did it in 2001 yes we 'gave' it back the next year but it was an additional credit that was added to what you were already getting back. It wasnt 'including' what you were already getting back

In other words I think you didnt have to 'take' the credit early from what I remember and then you got it the next tax year. If you had already 'taken' it you just didnt claim it and get it in ADDITION to your regular refund

We NEVER had it taken out of our regular refund..it was additional

But the math doesn't add up unless it's something like that. 200 million workers....$800 bucks a pop is *way* more than 150 Billion dollars. I mean, I'm pretty sure they could send us all 8 dollars, but that would put them over by 10 billion. I know that the government pays $1,500 for toilet seats and things like that....so maybe they use different math from what we all know. Maybe it's like Kramer said on Seinfeld...."Jerry, It's a Write-off" .

 

[speedyf]

I'm not sure some of you are understanding this correctly

When they did it in 2001 yes we 'gave' it back the next year but it was an additional credit that was added to what you were already getting back. It wasnt 'including' what you were already getting back

In other words I think you didnt have to 'take' the credit early from what I remember and then you got it the next tax year. If you had already 'taken' it you just didnt claim it and get it in ADDITION to your regular refund

We NEVER had it taken out of our regular refund..it was additional

Aha....finally someone remembers what really happened.

If you go back and read the info on this current stimulus package, you will note that the $800 and $1600 figures are coming from the fact that they want to abolish the 10% tax bracket this year.

No matter what you make....the first $2650 worth of your money is not taxed. Then, from $2651 to $10120....you are taxed at 10%. That's for single people....the tax table goes up from there. So, the difference between $10,120 and $2651 is about $7500.....and we all pay 10% tax on that....which is about $750 (around $800)

For married people....the first $8000 you make you are not taxed. From $8000 to $23500 you are taxed at 10%. The difference between $23500 and $8000 is $15,500. 10% of that is $1550 (around $1600).

Now...I don't know how they figure the $150,000 top range unless it has something to do with alternative minimum tax....I haven't really read up a bunch on that.

Diane is correct about the prior rebate. The child credit went from either $600 or $700 to $1000. They gave us the additional $300 or $400 per child during that year. The next year, we got the $1000 credit minus the $300 or $400....which brought us down to the credit we were expecting anyway.

Same thing here. You are already locked in to pay that 10% on your wages made between $2651 and $10120....or $8000 and $23500. If they abolished the 10% tax on this money, when you file in 2009 for 2008 you would get your 10% back that you paid. They want to send that money to you now instead of waiting until next year.

That's how I see it.....but, I haven't really done a bunch of research on it and I don't know if all the details are quite out yet.

It's basically a tax cut at the lowest level retroactive to the 1st of this year. They are giving you the refund now instead of waiting until the 1st quarter of 2009 when you file your taxes and realize that you paid that 10% on that income and you did not owe it and you get it back as a refund then.

Hope I didn't confuse yall too much.....

Speed

 

[speedyf]

Also...to all the people who don't pay extra and break even....why complain?

The reason you do this is that you don't want the government to hold on to your money and draw interest when you could be holding on to your own money and drawing interest.

If the goverment wants to send you a $1600 check....and you think you will owe it back to them in a year.....why not put it in a savings account and draw interest on THEIR money....then send it back.

You would really be sticking it to the goverment then....not only are they not getting your money to draw interest on....you are taking some of their money temporarily for a year....and drawing interest on it....then, sending it back.

Woohoo!

I try to do this as well...but, I usually don't account for the full child tax credit, so I end up getting about $500 or $600 back every year. I'll take the $1600 now and stick it in my savings for a year and send it right back, if they want it....but, I don't think that's how this stimilus package will work anyway. It's an advance on a tax cut...from what I see.

Speed

 

[Schachteles]

speedyf---you very well could be right...let me know if I have this right, or at least for what you understand it as...ok??

*So this years taxes that I am getting ready to file right now I will get $5400 back from the feds.

*Then with this stimilus plan I would possibly get $1600 for my family in June (all depends on the income level and how they figure it).

*But when I file my taxes for 2008 I hypothetically should still get that $5400 back if nothing changed, right?? But if they didn't give it out in June then I should have seen $7000 back?

I am just trying to figure this out to be more educated...forgive me if I am wrong or confusing more people.

 

[mom2my3kids]

I could sure use the extra money..

 

[Grumpy's Gal]

I notive several people said "per worker."

That confuses me.

What if one partner works and one doesn't?

What about dependants that work? (college aged kids)

So confusing.....

 

[MakiraMarlena]

Are you not thinking of the fact that if the economy does take a dive, people are going to lose jobs, lose pay and there will be LESS taxes being paid? Something like that could take a few years to recover from. This is an attempt to prevent that, so yes I'm all for it. Like I said, if you don't agree with it then don't cash your check if you get one.

I'm a little curious as to how getting a one-time socalled "tax rebate" check is going to prevent anyone from losing jobs or pay.

 

[MakiraMarlena]

I think step one would be for the Federal Gvt. to pay all the military personnel the 3.5% increase in pay that was authorized for them to be started in January, but President Bush vetoed the bill! How can we treat them so badly when we daily ask the supreme sacrifice from them?


The additional money we might get from the Government won't be for new spending <unless it's used to cover the increase in everybody's grocery bill, gasoline and home heating this year>. I don't see new purchases in a splurge atmosphere.

I am civilian federal and my raise with locality pay in my city is 4.49.

The military increase has to be at least 3.0%. It is usually on par with the basic civilian raise (without locality pay)

 

[IDoDis]

Just this morning there was a woman at Macy's (who, by the way, was sporting more bling than I could ever afford) who was trying to pay for a Coach bag with her WIC card. The cashier said NO and the lady argued with her that the purse could be used for a diaper bag.

Funny I've heard that story before. Isn't it an urban legend?

 

[scrapquitler]

A few years ago, here in CT the state had a huge surplus, so they decided to give us a 'rebate' like the one that was proposed today. There were two problems with it: It cost the state millions of dollars to process these rebates, and we were all shocked the next year to recieve a 1099 from the state for the amount of the rebate -- yup, that's right...WE HAD TO PAY INCOME TAX ON THE REBATE THE NEXT YEAR.

You can be guaranteed that if we get this rebate, it will cost the government tens of millions of dollars to process sending out the rebate. You can also be sure that next year you will have to to pay income tax on that $800, so be sure to save some of it instead of spending it.

 

[robsmom]

A few years ago, here in CT the state had a huge surplus, so they decided to give us a 'rebate' like the one that was proposed today. There were two problems with it: It cost the state millions of dollars to process these rebates, and we were all shocked the next year to recieve a 1099 from the state for the amount of the rebate -- yup, that's right...WE HAD TO PAY INCOME TAX ON THE REBATE THE NEXT YEAR.

You can be guaranteed that if we get this rebate, it will cost the government tens of millions of dollars to process sending out the rebate. You can also be sure that next year you will have to to pay income tax on that $800, so be sure to save some of it instead of spending it.

You will not pay income taxes on the federeal refund/rebate whatever it ends up to being but i am not sure why you were suprised by having to pay taxes on a state refund. they are always taxable and have been for a long time. You only paid the taxes if you were itemizing and took your state taxes as a deduction for state and local taxes. You can't keep the deduction if the state gave you the money back. Think about it, if this where the case then every state would tax us 100% and then give most of it back. but people would owe no federal taxes because they would deduct the 100% and never add back in what they got back. You took the money as a deduction

 

[pandora174]

I wonder if my DB who is disabled & gets SSI but never makes enough to pay taxes but he still files every year to be ok with the IRS will qualify for this stimulas package. He definitely can use the extra $. He gets $614 a month & $124 in food stamps & it's very hard for him. Thankfully he lives with our other brother.

 

[MrsPiglet]

I wonder if my DB who is disabled & gets SSI but never makes enough to pay taxes but he still files every year to be ok with the IRS will qualify for this stimulas package. He definitely can use the extra $. He gets $614 a month & $124 in food stamps & it's very hard for him. Thankfully he lives with our other brother.

This are the people that really needs it. I hope he gets it.

 

[speedyf]

speedyf---you very well could be right...let me know if I have this right, or at least for what you understand it as...ok??

*So this years taxes that I am getting ready to file right now I will get $5400 back from the feds.

*Then with this stimilus plan I would possibly get $1600 for my family in June (all depends on the income level and how they figure it).

*But when I file my taxes for 2008 I hypothetically should still get that $5400 back if nothing changed, right?? But if they didn't give it out in June then I should have seen $7000 back?

I am just trying to figure this out to be more educated...forgive me if I am wrong or confusing more people.

That would be correct. The plan still hasn't been set...but, that's what I'm reading into it. Now...if this were a permanent tax cut, it would be nice....but, it seems like another temporary tax cut just like the Bush tax cuts that are in effect now. This means future congress/president can decide not to renew the cut.

Again...this is all preliminary....and it seems to be all political (election year)...but, I don't think it will be a situation where you get money now and have to pay it back at the end of the year. That's what everyone seems to be stressing about.

I still don't understand how removing the 10% tax bracket would not effect people that make over $150k unless they plan on sticking that 10% back in somewhere else.

I don't have all the answers...I just don't want everyone jumping to conclusions about what this is or isn't. The info from Diane about the past rebate was correct, though. We basically received an advance on an additional tax credit that we would have received at the end of the year anyway.

I still got my scheduled $600 child credit that year...but, also got to keep the $400 rebate check I received earlier in the year. The child credit went from $600 to $1000 per child. The nice thing is that it actually stayed there....so far....until Congress decides whether it will renew the Bush tax cuts or let them expire and send the credit back to $500 or $600.

I have a feeling that our taxes will go up in that way....not raising taxes....just not renewing or making permanent the Bush tax cuts.

Speed

 

[speedyf]

Again....this stimulus package may or may not be a good thing. If they would come out and say that they are "cutting" spending to help pay for it, it would be a heck of alot better.

I'm all for lower taxes and lower government spending.

The problem is that the government sets up more and more programs each year to fund. Then, each year....these projects get a % increase in budget to keep up with inflation or CPI or whatever. If they get a 2% increase instead of a 5% increase, the reporters are all over the news, internet, etc saying that the government is cutting funding to these programs. Most of the time, they are not cutting funding...they are just not giving them the increase in budget that they want.

I really wish they would cut out alot of the programs and cut funding across the board (foreign aid, domestic projects, everything!) to balance the budget.

Why do you think companies are moving out of the US? The ridiculous corporate tax rate is a big reason. Also...anytime a company makes too much money, the government wants to bring it down by making them pay more taxes.

Hey...you're doing too well and you are too successful. Let's change the rules and make you pay even more taxes. Guess what? I'm moving overseas.

Speed