Tax Relief Money....Should I Give it to Disney???

[Laren]

First thing I said to my husband is "there is our WDW money!" lol but I wonder is this really free money or is it like the time we got a 'rebate' in 2001 and then when it was time for taxes next year they deducted it from our refund then?

I like the idea of extra money not but not no refund/potentially owing a little when it's time to do our 08 taxes next year. Anyone know the specifics? Or haven't they announced how it's going to work yet I keep looking for it but not finding anything.

 

[corinascot]

Not to put a damper on the fun, but you know this is a PROPOSED tax rebate. Will it get through the Senate??

 

[creativeamanda]

We are adding a day to our trip. We were going to stay Aug 1 off resort, but now we are going to stay at POR. With the dining plan, it adds another $250 to our trip (since we're canceling the Quality Inn). But I'd like to add that we do not have cc debt (paid them off when my parents passed with the inheritance)--I have student loans. Since the student loans are in the upward of $17,000, I highly doubt that the possibly $2100 I'll get will make a drop in that bucket.

I don't think you are doing a bad thing, though if you put all or half to a Disney vacation. I'm a special education teacher and my husband an 8th grade math teacher. To pay for this vacation, we are making monthly payments to WDW so we wouldn't put it on our credit card we reserve for emergencies. How many families are putting the vacation on credit cards and saying "we'll worry about paying it later"? This will give those families a chance to not have to worry about it later.

Frankly, most of us Americans have struggled so much simply paying for groceries and gas that a vacation is not only needed but deserved. Dh and I spend summers looking for extra work to pay for extras for our kids like dance lessons and such. So do I think you are being selfish by adding time to your vacation? No! I'm sure your family has struggled as much as mine has.

 

[G8r4evr]

I would pay the CC. I can never FULLY enjoy myself, knowing that I owe someone else money...so taking the trip and paying off the card sounds like the "best of both worlds" =)

 

[creativeamanda]

Not to put a damper on the fun, but you know this is a PROPOSED tax rebate. Will it get through the Senate??

It really looks like it will get through the Senate. The only person I've seen having problems with it is Senator Kennedy.

As far as us having to pay taxes on it in the end of the year, the answer of course is yes. You have to pay taxes on all returns recieved that year, which makes no sense because you've paid taxes once already. My advice to anyone who is in that situtation is to do what I've done--I started a home business many years ago and take a loss on it every year.

 

[DVC~OKW~96]

Pay off the cc. The interest you save may easily allow you to add on those extra days.

 

[Promomx2]

We're taking the whole family (including dd new boyfriend) this summer, but when I heard about this tax relief, well, it IS going to be our 25th anninversary this nov. and it WOULD be great to get away with out the kids. Soo, I'm keeping my fingers crossed that nobody's car/truck breaks down or no major disasters so I can book for nov also.

 

[MickeyHereWeCome!]

It really looks like it will get through the Senate. The only person I've seen having problems with it is Senator Kennedy.

As far as us having to pay taxes on it in the end of the year, the answer of course is yes. You have to pay taxes on all returns recieved that year, which makes no sense because you've paid taxes once already. My advice to anyone who is in that situtation is to do what I've done--I started a home business many years ago and take a loss on it every year.

I guess what we'd like to know, is will the total amount we receive in June come directly out of what we should be receiving as a refund in 08? If we get a rebate of $2400, is that $2400 going to be deducted from next year's refund? So, if we would normally get a refund of about $5000, we would then only get $2600 back next spring. In '01, we got the rebate, but that money was taken out of what we should have gotten from a refund the following year. Therefore, it wasn't really "free money". I can totally understand having to pay taxes on the rebate, but I don't want to spend it if it just means we'll hardly get anything back from our regular tax refund next year (for '08). Of course, I can't find any info about this anywhere

We're already planning a trip to WDW for next January (before we knew anything about the rebate). We've been toying with staying in a Deluxe this time, but I'm not sure we can justify the cost. If this is really "free money", then I think we'll go ahead and splurge. We'll use the rest for bills, etc.

 

[ilisao]

I guess what we'd like to know, is will the total amount we receive in June come directly out of what we should be receiving as a refund in 08? If we get a rebate of $2400, is that $2400 going to be deducted from next year's refund? So, if we would normally get a refund of about $5000, we would then only get $2600 back next spring. In '01, we got the rebate, but that money was taken out of what we should have gotten from a refund the following year. Therefore, it wasn't really "free money"

Yes, that's the way it's supposed to work. This isn't free money by any means. For my family, we will use that money towards our credit card.

 

[Disneyland_Mama]

Yes, that's the way it's supposed to work. This isn't free money by any means. For my family, we will use that money towards our credit card.

I'm not sure it's understood how it works, I believe it is a REBATE, and therefore not taken from your refund, as in an advance of some sort.

 

[KMLOVESWDW]

DH heard this rebate news & instantly said "we can use it for a Christmas trip to Disney". We've never been to see any of the Christmas stuff so maybe. Last night on Larry King, Suzie Orman said to pay off debt or save the money. Why do I watch tv???

 

[WildernessBride]

Last night on Larry King, Suzie Orman said to pay off debt or save the money. Why do I watch tv???

I agree!! It makes going with your heart so much less fun!!!

 

[WETWHISTLE]

No doubt about it - put it towards your credit card balance. Otherwise you are just giving the credit card companies more money!

 

[WantToGoNow]

We will be putting ours back to pay for airline tickest for the 5 of us -- usually we drive because of the added cost of flying (from Ohio - 16 hours), but not on the next trip...

 

[Kanga1]

I guess what we'd like to know, is will the total amount we receive in June come directly out of what we should be receiving as a refund in 08? If we get a rebate of $2400, is that $2400 going to be deducted from next year's refund? So, if we would normally get a refund of about $5000, we would then only get $2600 back next spring. In '01, we got the rebate, but that money was taken out of what we should have gotten from a refund the following year. Therefore, it wasn't really "free money". I can totally understand having to pay taxes on the rebate, but I don't want to spend it if it just means we'll hardly get anything back from our regular tax refund next year (for '08). Of course, I can't find any info about this anywhere

Yes, you have to claim this as "income" on your 2008 taxes, but I don't think they will automatically deduct the whole rebate from your 2007 tax rebate. I think they just take the normal 33% of it like they do on your income.

CC debt? GET RID OF IT!!!! Why in the world would you want to keep PAYING someone else for things you've already purchased!!! This one's a no-brainer for me.

IF we get the rebate, I'm using mine as additional down payment for a new car...and thus lowering the amount of "interest" I have to pay them. I haven't bought a car in 20 years! Still driving my 1988 Corolla. Then again...maybe I'll just keep my car and stash the money in the bank.

 

[maxiesmom]

I'm tempted to give my extra money to Disney too, but I am going to be good and put it on a credit card. My goal is to become debt-free and be able to pay cash for my Disney trips. I know I am not stimulating the economy, but oh well.

 

[eliza61]

DH heard this rebate news & instantly said "we can use it for a Christmas trip to Disney". We've never been to see any of the Christmas stuff so maybe. Last night on Larry King, Suzie Orman said to pay off debt or save the money. Why do I watch tv???

That's why God invented Desperate Housewives rerun. So you don't have to watch evil people like Suzie Orman and that other debt guru, I forget his name.

 

[DznyDreamz]

I am so glad to hear I am not the only one whose first thought was.....whooo hooo, WDW here we come!!!!

Like others have said the Disney corporation is probably not the portion of the economy that needs to be stimulated. Well, in my household, there is lots of local economy simulating going on as I suddenly need to buy one (or four) of every possible thing in the world in order to "be prepared" while on vacation. You know how it goes, snacks for the room we never eat, new outfits for everyone, spending hundreds to buy things that you might need just to avoid the possibility of having to pay a couple extra dollars on the very thing you "might" need when you get there???

I say put the $$$ down towards paying down (off) credit card debt. Instead of paying a monthly credit card bill with high interest on things you already have or used, make a monthly payment to WDW that is interest free and have the trip paid for before you leave. You can save the CC to use at WDW for incidentals - or preferably, cash... Just my two cents....

 

[a Really Bad Egg]

...to pay down high interest credit because that will hurt your net worth.

However, making memories that last a lifetime is not a bad investment. I've used this logic on more than one occassion.

 

[mickeyluv'r]

Wow, so much irresponsible behavior. No wonder so many Americans are in a financial mess right now. If you have cc debt, that is obviously the thing to do with it. Fun or not, carrying a cc balance is just plain dumb. Look at how muc money you are losing in interest each month. Pay it off an you could take a vacation with the savings! Personally I'd feel sick if DH wanted to be that irresponsible. I could never enjoy a vacation if I knew I had cc debt.