Tax Rebates?

Not exactly true....

The rebates will appear as a credit on your 2008 taxes, but you are getting an advance on that credit now.

Your 2008 taxes will basically be unaffected. You will get a tax credit that will be offset by the advance... Basically creating a wash.

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

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.

For the rebates based on taxable income ($600 for singles, $1200 for joint filers), the rebate will about equal the tax cut, so your refund next year will not be effected.

Of particular concern are the $300 rebates to those who pay no tax and the $300 rebates for dependent children. Those who receive these rebates may wind up paying it back next year.

One thing I know, which may or may not be helpful, is that you are going to have to pay taxes on this money next year because it is considered taxable income. So you'll be paying that much more because the amount of your refund will be added to your taxable income. Add that to the fact that most things we buy are from other countries, a high percentage of people said they'd use the money to pay off debt or will save it, we're borrowing the money from China and paying it back with interest and this is altogether a bad idea. Who's economy is this going to stimulate? Not the USA's! Free money would be great, if it were actually free and would actually make a difference.