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Subject:  Re: Tax stimulus - 2007 vs. 2008 Date:  2/13/2008  12:45 AM
Author:  TMFPMarti Number:  98632 of 129673

Can someone confirm my understanding.... the tax stimulus is really against 2008 income, so if your income is too high in 2007 for the total or any rebate, but this is not the case in 2008, then next spring/summer (of '09) you will receive whatever extra you qualify for?

Confirmed. The checks to be sent this year are based on information on 2007 returns, but the are actually an educated guess as to what your 2008 refundable credit will be. If the check was too little you get the balance as a credit on your 2008 return. If the check was too much you get to keep the change.

Second, am I to understanding that the rebate is not taxable this time around? Or won't be added into near year's taxes owed? As apparently was the case last time around?

I'm not sure how you got confused before, but neither of the two prior "prebates" has been taxable in any way. The two prior ones were prepayments of retroactive reductions in current year's taxes, as is this one. It must be accounted for when you file your return to make sure you don't get the benefit twice, but in no way is it taxable, nor does it have to be "paid back."

Phil
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