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Author: carnmar Three stars, 500 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121185  
Subject: Tax rebate checks ?? Date: 2/2/2002 3:33 PM
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Does anybody know if the IRS is taking back the money we got for the rebate out of our refunds?

A friend said they did on his.

mar
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Author: taxprof Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 58074 of 121185
Subject: Re: Tax rebate checks ?? Date: 2/2/2002 4:04 PM
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The answer is no. Regardless of income, the tax rebate that people received $300 or $600) is not reportable as income nor do you have to pay it back if you earn less than would have generated the tax subject to the rebate. In essence, your friend is inaccurate when he says that they subtracted the rebate from his refund. It is likely that your friend had an outstanding debt with the federal government, child support, or some other debt that the IRS withholds refunds for.

TaxProf

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Author: carnmar Three stars, 500 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 58080 of 121185
Subject: Re: Tax rebate checks ?? Date: 2/2/2002 5:29 PM
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TaxProf,

Thanks for the reply.

mar

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Author: ptheland Big gold star, 5000 posts Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 58089 of 121185
Subject: Re: Tax rebate checks ?? Date: 2/2/2002 9:10 PM
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The other common mistake is to try to claim the rebate a second time on your return. That would involve messing up on line 47 of your 2001 return. (Or line 30 on a 1040A). That error would also look like they took the rebate back, when instead the IRS simply refused to give you TWO rebates.

--Peter

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Author: JuniorBuffett Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 58130 of 121185
Subject: Re: Tax rebate checks ?? Date: 2/3/2002 7:21 PM
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Perhaps one reason the notion that the $300 per person tax rebate reduces ones refund by a like amount is the H&R Block tax preparation program. I just finished doing my taxes using the program. It has a tax refund number displayed on the screen as one works through all the questions. I noticed that after entering the $300/person rebate ($600 in my case since I filed a joint married return) my H&R block calculated refund decreased by $600! Also, H&R block included a statement that although not taxed on the $600, my refund would be reduced by that amount.

I can only imagine that their intent was to point out that in 2002, there won't be any such rebate and the tax rates are going to be adjusted accordingly and that the government made a decision to not adjust the rates for 2001.

JB

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