Tax Refund Checks

[HavBlue]

Heads up, an internal IRS memo says we're processing in May.

 

[reiobard]

what will the pay structure be? do you know? it says "up to" which is scary to me since that means i get next to nothing while rich folks that don;t need it get the full amount to pad their bank accounts with.

 

[mikebike]

what will the pay structure be? do you know? it says "up to" which is scary to me since that means i get next to nothing while rich folks that don;t need it get the full amount to pad their bank accounts with.

EASY there Reiobard.... folks with higher incomes get NOTHING so know where of you speak prior to slamming those that pay far more in taxes to help support those that do not but have their hand out.

by the way this ecconomic stimulus package it a pile of dung.... it will not work .... yet those that fuss about the debt and wild governement spending are right there with thier greedy little mitts out.

 

[bikerider]

Will we have to pay taxes on the ecconomic stimulus package? I finished my taxes last night. Im ready to go shopping :rockon:

 

[Hellgate]

Will we have to pay taxes on the ecconomic stimulus package? I finished my taxes last night. Im ready to go shopping :rockon:

I think we do, if I remember correctly we had to on the first go around on this.

 

[reiobard]

EASY there Reiobard.... folks with higher incomes get NOTHING so know where of you speak prior to slamming those that pay far more in taxes to help support those that do not but have their hand out.

by the way this ecconomic stimulus package it a pile of dung.... it will not work .... yet those that fuss about the debt and wild governement spending are right there with thier greedy little mitts out.

I agree that this will not work, but in the past they have tried things like "trickle down economics" where they put the $ in the hands of the higher income folks with the understanding that they will spend it and put it gradually into the economy. I apologize if i offended you or anyone else in the higher tax brackets by my inquiry as to the pay structure. I was simply trying to "KNOW WHERE I SPEAK OF" by asking how it was going to work. I made no mention as to whether i knew if it was going to be a blanket amount for everyone, or to whether i knew who was getting what.

So before you get all pissy and try to put words in my mouth please take the time to READ the post. Instead you took my asking a simple question of how it was going to work from our friendly IRS guy and turning it into a Greedy whiny fit. In simple i was saying that if they try the trickle down economics bull $hit that they always seem to try it will definitely not work. If i get nothing that is fine with me, just don't tease people and then not deliver.

 

[madmanmaigret]

does this mean no checks until may or just the stimulus package check?
thanks for the heads up hav!

 

[jsteinb95]

I agree that this will not work, but in the past they have tried things like "trickle down economics" where they put the $ in the hands of the higher income folks with the understanding that they will spend it and put it gradually into the economy. I apologize if i offended you or anyone else in the higher tax brackets by my inquiry as to the pay structure. I was simply trying to "KNOW WHERE I SPEAK OF" by asking how it was going to work. I made no mention as to whether i knew if it was going to be a blanket amount for everyone, or to whether i knew who was getting what.

So before you get all pissy and try to put words in my mouth please take the time to READ the post. Instead you took my asking a simple question of how it was going to work from our friendly IRS guy and turning it into a Greedy whiny fit. In simple i was saying that if they try the trickle down economics bull that they always seem to try it will definitely not work. If i get nothing that is fine with me, just don't tease people and then not deliver.

Take it easy Rob......Mike was just commenting on what you said about the rich. If you make over $150,000 (< I think) a year, you get nothing. The checks are coming in May....if you made less than $150,000 (combined w/spouse) then you will get something. :thumbup:

 

[mikebike]

I am pretty sure just the stimulus package checks will be later....regular interest free loan (other wise know as refunds) will be deliviered as normal

" i get next to nothing while rich folks that don;t need it get the full amount to pad their bank accounts with."

the above is not putting words in your mouth and plainly draws a line between the haves and the have nots and cast a disparaging tone against those that have.

it is not a matter of need it or not ... why should people have to need it if the rich paid more into taxes than the non rich why should they not get money back as well....

keep in mind I do not think ANYBODY should be getting MONEY from the Government

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I apologize if i offended you or anyone else in the higher tax brackets

I never said one way or the other what tax bracket I am in

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sounds like you have a case of cabin fever ...why don't you go out and shovel some snow..... my motorcycle is calling...

 

[reiobard]

My only issue was the implication that if you don;t have spare money then you are greedy and you are looking for a hand out. I could definately use the money and agree that nobody should be getting "free" Money from the Govt. All ti is going to do is kill the US dollars worth even more than it has been lately.

My only point is that if you do in fact make more than $150,000 and get the full potential of the money that is being sent out (whether it is a good idea or not, it is going to happen) and someone who is a teacher like my wife and makes $15,000 a year while working her way through school and she only gets, lets say $100, i don't think that is putting the $ where it could actually do some help to people.

Now that being said, does anyone actually know what the structure will be? We made much less than the $150,000 that was mentioned so from this thread i have gathered that something will be coming. Just no idea if it will be the full amount or if it will be a percentage of that.

Once again, i agree that the money from the Govt will NOT help anything but if they are coming i was just curious if they would put it where people need it rather than someone that probably makes enough where it will be put into savings and not touched for a long time.

 

[DefyInertia]

HavBlue, it was nice of you to post this.

I am pretty sure just the stimulus package checks will be later....regular interest free loan (other wise know as refunds) will be deliviered as normal

Did you hear that they pushed back the 1099 deadline for 5 major brokerage firms? Perhaps there will be less corrected 1099s this year. +1 on the interest free loan concept.



reibard, you made some interesting comments. I must know your qualifications as an economist.

Will we have to pay taxes on the ecconomic stimulus package?

Assuming you mean the check they are cutting, I suppose it depends how they look at it (I know little of this program currently). If it's a direct reduction of your tax liability (similar to a credit) then I'd say no. If it's a handout, then I'd say yes. This won't impact any of my clients so I have not looked into it. HavBlue???

 

[Hellgate]

HavBlue, it was nice of you to post this.



Did you hear that they pushed back the 1099 deadline for 5 major brokerage firms? Perhaps there will be less corrected 1099s this year. +1 on the interest free loan concept.



reibard, you made some interesting comments. I must know your qualifications as an economist.



Assuming you mean the check they are cutting, I suppose it depends how they look at it (I know little of this program currently). If it's a direct reduction of your tax liability (similar to a credit) then I'd say no. If it's a handout, then I'd say yes. This won't impact any of my clients so I have not looked into it. HavBlue???

These were a hand out last go around, I got a check in the mail. Robbing Peter to pay Paul...

 

[craig007]

Married couples with incomes below $150k, get the full amount. The payment gets reduced down to nothing at around $175k. I'm not sure is the per kid payment is indexed to income.

I don't like it. It is election year pandering. It just means that taxes will be higher next year to pay for this. Anyway if they wanted to stimulate the economy they should have given checks to teenagers. That money would flow straight into the economy.

 

[mikebike]

I don't like it. It is election year pandering. It just means that taxes will be higher next year to pay for this. Anyway if they wanted to stimulate the economy they should have given checks to teenagers. That money would flow straight into the economy.

don't sell all teenagers in the same boat... I have a 17 and 22 yr old and both have nice mutual fund portfolios they invested in with thier money.

Each owns their car (they paid for) and both have jobs the younger owns his own business....

I get your point and unfortanately I agree with it --- just do not generalize with too wide of brush

 

[HavBlue]

Any and all money I get back will be invested. Cause you know we'll have to claim it next year.

Yup, it's income....

 

[HavBlue]

DI, Yes, and the adjustment should help things in terms of the 1099C run. I don't deal with that much as I generally work personal and small business. Working a guy right now that is trying to go CNC. He's got an 8821 working under his 2848 that is an idiot and trust me, when I'm through with them I'm hooking up all three. Sometimes I would swear these folks think we just fell off the tow truck.

Another heads up folks:

The IRS does not send out E-Mails. If you get one from the IRS do not respond to it and "DO NOT OPEN IT." It's that time of year again and the warnings are coming out fast. One such E-Mail has been found to contain a Trojan type virus and another is attempting to gather identity theft information. My wife received one of them today.

 

[Bo67]

Good heads-up on the scams Hav Blue. I already knew of them but a reminder never hurts. Thx.:thumbup:

 

[DefyInertia]

Yup, it's income....

Isn't it just an advance payment of a tax credit?

Mechanics of relief. In technical terms, the recovery rebate credit is structured as a credit against tax for the 2008 tax year. ( Code Sec. 6428(a) ) However, those who are eligible individuals for the 2007 tax year will get an advance refund of the credit in 2008—via a check from the Treasury or direct deposit to their bank accounts—based on their tax situation for 2007. ( Code Sec. 6428(g) )

When the 2008 return is filed in 2009, taxpayers will use a worksheet to:

(1) calculate the amount of the rebate credit based on their 2008 tax return, and
(2) reconcile that amount against the advance rebate payment they received based on their tax situation as reported on their 2007 return. ( Code Sec. 6428(f) , JCX-16-08)

For many taxpayers, the two amounts will be the same. If, however, the amount in (1) exceeds the amount in (2) (because, for example, the taxpayer paid no tax in 2007 but is paying tax in 2008), the taxpayer will be able to claim that amount as a credit against 2008 tax liability. No interest is allowed on any overpayment. ( Code Sec. 6428(g)(4) ) If, however, the amount in (1) is less than the amount in (2) (because, for example, the taxpayer paid tax in 2007 but owes no tax for 2008), the taxpayer will not have to repay the rebate amount to IRS. ( Code Sec. 6428(f) ) Otherwise, the rebate payments have no effect on tax returns filed in 2009; the amount isn't includible in gross income and it doesn't otherwise reduce the amount of withholding.

This is all late breaking...I can't even access the code sections sited yet.

 

[Jake]

There is a maximum income allowed in order to get this refund (I believe it's $150,000 or over). There is no minimum income to recieve this refund.

-- Trickle-down economics was used effectively to bring us out of a major recession during the 1980's. Will it work now? I dunno, I'm not an economist. It has been effective in the past though, that's all I'm saying.

-- The rich get richer and the poor get poorer because they keep doing the sames things that got them there in the first place.

-- I've never been issued a paycheck by a poor man.

Ride Safe, Be Happy,
Jake

 

[DefyInertia]

There is a maximum income allowed in order to get this refund (I believe it's $150,000 or over). There is no minimum income to recieve this refund.

The phaseout starts at 150 for MFJ etc. but at 75 for single filers

Regarding the minimum income...

Basic credit amount.

An eligible individual receives a basic credit for the first tax year beginning in 2008 equal to the greater of:

(1) his net income tax liability up to a maximum of $600 ($1,200 for a joint return); ( Code Sec. 6428(a) ) or
(2) $300 ($600 for a joint return) if either (a) the taxpayer's “qualifying income” is at least $3,000; or (b) his net income tax liability is at least $1 and gross income is greater than the sum of the applicable basic standard deduction amount and one personal exemption (two personal exemptions for a joint return). ( Code Sec. 6428(b)(1)(A) )

RIA observation: Thus, the minimum basic credit for eligible individuals who meet requirements (1) or (2) is $300 ($600 on a joint return), and the maximum basic credit is $600 ($1,200 on a joint return).

“ Net income tax liability ” for this purpose is the excess of the sum of the individual's regular tax liability (under Code Sec. 26(b) ) and alternative minimum tax (under Code Sec. 55 ) over the sum of all nonrefundable credits (other than the child credit). It is not reduced by the refundable recovery rebate credit or any other currently refundable credit. ( Code Sec. 6428(e)(1) )

“ Qualifying income ” includes:

... earned income;
... Social Security benefits (as defined in Code Sec. 86(d) ); and
... any compensation or pension received under chapter 11 (compensation for service-connected disability or death), chapter 13 (dependency and indemnity compensation for service-connected deaths), or chapter 15 (pension for non-service-connected disability) of title 38, U.S. Code. ( Code Sec. 6428(e)(3) )

RIA observation: Thus, retirees getting Social Security income and disabled veterans and their survivors may qualify for the rebate. Also, those who receive Social Security disability benefits can receive the rebate.

“ Earned income ” has the same meaning as used for the earned income credit, except that it includes combat pay and doesn't include net earnings from self-employment which are not taken into account in computing taxable income. ( Code Sec. 6428(e)(4) )