Today at 2 pm President Bush signed the Economic Stimulus Act of 2008 into law. Bush called the act a "booster shot" for the economy, which he said is going through a "rough patch." President Bush said that the bill, which amounts to more than $152 billion this year, is plenty large enough to make a large impact. The bill amounts to about 1 percent of Gross Domestic Product, or GDP. The government hopes that this act will help the economy avoid recession, or make a potential recession a very short one.
Now let's take in-depth look at what the stimulus act means to you, and how much you can expect when your tax rebate check comes in the mail.
The tax rebates are expected to be sent out in May of 2008. This rebate has no affect whatsoever on 2007 tax returns. The rebates are an "advance" on a new credit that will be presented on 2008 tax returns. What does this mean? It means that when you file your taxes for 2008 the IRS will run a calculation for the stimulus rebate again. If the results show that you should have received more for any reason, you will be sent the difference. If the results show that you should have received a smaller rebate you will get to keep the difference. Basically, the rebate that you will receive is a credit to the taxes you'll owe on 2008 income. The credit is a new credit, which means you won't have to pay it back.
Rundown of situations
- Individual taxpayers- $600 check
- Married filing joint returns- $1,200 check
- Those not paying taxes but earning at least $3,000 annually- $300 check
- Child Rebates- $300 per child (no limit)
Those who can be claimed as a dependent on another's taxes will not receive a check, but may be eligible for a second chance rule on their 2008 return if they are not dependent.
The schedule is set for the tax rebate checks to start going out in May, but you have to file your 2007 taxes before the IRS will send your check, so if you are late or get a filing extension, you won't receive the check until later.
If you have any questions regarding the tax rebates I will do my best to answer them here. The Economic Stimulus Act of 2008 is signed and is ready to go, now all everyone can do is wait for the checks!
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» The 2008 Tax Rebate- Economic Stimulus plan nitty gritty from GrowYourFunds
Today the details of the economic stimulus plan, aimed at stunting a possible recession, were revealed. The plan was designed by the congress and the President to go toward those who need it most as well as those who are... [Read More]
Tracked on: February 14, 2008 7:01 PM | Permalink to Trackback