Stimulate My Package
Ok, I’m a bit perplexed about my taxes. Instead of hiring a CPA, I’ll just solicit answers from the world at large.
Last year I was eligible to receive one of those stimulus package rebates. Now, I was under the impression that those were designed to stimulate the economy by having you spend it. I also thought it was associated with my 2007 taxes, not the current year (at the time) of 2008.
Anyway, I was preparing my taxes last night using a tax software program and throughout the process, your refund amount (based on the numbers you’d entered so far) appears on the top right. It goes up and down each time you enter something new (interest from banks, etc…). Well, I got to the page that discussed the tax rebate from last year. It said to enter what the government gave me. I did.
…AND MY TAX REFUND FOR THIS YEAR WAS REDUCED BY THAT AMOUNT!
I don’t get it. How did that stimulate the economy? It was basically the government saying “here’s some money.”…then 6 months later saying “Psyche – I was only kidding!”
So where was all this fuss about how this rebate would cost the country so much money if they were just going to be taking it back, dollar for dollar, a few months later? And how does that help the everyday person who was expecting a much larger refund at the end of the year?
I mean, I was against the rebate checks in the first place (as I was the first time Bush did it in 2001). So I suppose it seems rather hypocritical of me now to complain about having it taken away.
But I’m wondering if I’m doing my taxes wrong somewhow. I mean, essentially this rebate did nothing for me. It slipped into my hands and then the exact same amount slipped right back out. I guess in my mind it was supposed to be like the bail-outs the corporations are getting. Do they have to pay it back?
Anyway…if anybody knows what the story is, please let me know. I don’t have the energy to check out the IRS website. Besides, comments from online readers are usually much more interesting, filled with rants and sarcasm that you simply can’t find on those stuffy government websites.
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That’s right, you’re tax refund will go down by $600 (just assuming that’s what you got) so it’s really a pre-payment of money.
The whole idea of these checks is absurd.
I won’t even get into the debacle that passed the Senate yesterday, alright I will say this $800B is almost the entire amount of personal income tax collected in the US each year (usually that’s around $1T) so that means all that spending is almost equal to all the personal income tax collected. Want to stimulate the economy don’t collect personal income tax for 2 months, it’ll be cheaper and put real money in people’s pockets not in pet projects and such.
Thanks! Well, that’s insane. instead of calling it a rebate (which it isn’t), they should have called it an “advance.”
At the time, I was a bit miffed that I didn’t qualify for one of those checks. I had no idea it was a give with one hand, take with the other scam. Why am I not surprised it was perpetrated by George, W. Bush?
What check? That’s my story and I’m stickin’ to it.
If they wanted me to pay taxes on it, they should have sent me a W2. But they didn’t, so I’m with Jeffrey.
Now that I think about it, I think you can make $600 and not get taxed. This lets the kid that mows the lawn, and the babysitter avoid doing hard time, unless they’re really overcharging you. Don’t quote me on that though.