If the incentive Tax Rebate happens, will that money be considered taxable income in the following year ?

No.

The rebate will not effect your 2008 federal tax liability or refund. The law says the IRS can't recover any extra rebate payment by reducing your 2008 refund or adding to your 2008 tax bill.

The "rebate" is an advance credit against your 2008 tax return (which will be filed in 2009). However, it is calculated based on the amounts shown on your 2007 return. When you file your 2008 return, the IRS will recalculate your "rebate" based on the 2008 amounts. If this results in a larger "rebate", you will receive a check for the difference. If this results in a smaller rebate, you will not have to repay the difference.

The "rebate" will not increase or decrease any tax refund to which you are entitled. It is an additional refund.

Totally free. Do not need to report next year. Here is what the IRS has to say about it.

Q. Is my stimulus payment taxable?

A. No. You will not owe tax on your payment when you file your 2008 federal income tax return. But you should keep a copy of the IRS letter you receive later this year listing the amount of your payment. In the event you do not qualify for the full amount this year but you do next year, you will need to have the letter as a record of the amount you previously received.

Go to this page http://www.irs.gov/newsroom/article/0,,id=179181,0...

on the IRS site and scroll all the way down the page until the 6th question from the last.

The answer is NO, it's not. Unlike the rebate in 2003, which was a loan against next year's refund, this stimulus package is a straight return to the citizens of the taxes collected in 2007.

According to the IRS website of FAQs about the tax rebate:

Q. Is my stimulus payment taxable?

A. No. You will not owe tax on your payment when you file your 2008 federal income tax return. But you should keep a copy of the IRS letter you receive later this year listing the amount of your payment. In the event you do not qualify for the full amount this year but you do next year, you will need to have the letter as a record of the amount you previously received.

The Rebate IS happening, and it will NOT be taxable income for 2008.

No.

But the forms will work the same way they did the last two times and people will be convinced they did. The forms will calculate the rebate as if you hadn't gotten it early and then subtract out the amount you received. This gives people a second shot at getting the full amount. But you only get the money once.

Not sure what you mean by "if it happens" since it's already passed into law well down the road to being implemented. And no it isn't taxable next year..

No, it's a gift, not Earned Income.

No, it's a free check. No tax liability.

Yes, we will be taxed on it, so be sure to keep some aside to prepare for that next year.

free money.