Tax Refund??

[dvcdenise]

The IRS sight states that you will NEVER have to pay it back, however if the person doesnt qualify this year they may qualify next year.

 

[SheDaisy0088]

My hubby is a tax advisor at his job. He says that this is not a refund. It is a rebate on next year taxes. Let me explain it this way. Basically if you were going to get $600 back next year (2002), then you wouldn't get anything back in 2002!! If you owed $600 next year then you are going to owe $1200 next year!! If you were going to get $2000 back in 2002 then you are only going to get back $1400. Make sense. It is not a refund merely a rebate!! One that we will have to pay back one way or another!!

I am ashamed to say that at the time that he proposed the tax cut it sounded good!! Now I am really beginning to wonder!! It looks like the only people that are going to see anything worthwhile are the rich people who don't really need it anyway!!

 

[Falls1]

Here is a bit of information to help you understand some
of the tax information..

Individuals who did not have an income tax liability for 2000 but who have one for
2001 will be able to claim the tax credit on their 2001 return, provided they are
otherwise eligible. Taxpayers whose advance payment is less than the credit
amount figured on their 2001 tax return will be able to claim the rest of the credit
when they file their 2001 return. Taxpayers whose advance payment is larger than
the credit amount figured on the 2001 tax return will not have to pay back any
difference.

 

[Riverview]

SheDaisy008 Isn,t that the way it always works the rich get richer and we get the crumbs.
Riverview

 

[Sleepy]

I do not understand the gov thinking on this one. IF this *refund* is merely an advanced payment for our refund for next year, wouldn't it make more sense for the gov to just hang onto the refund until the normal tax year rolls around before giving people this money? Think of all the interest the gov could be making off this?

I don't see how this could be classified as a surplus since as they now specify, it is merely an advance on next year. What I also do not understand is.....if the tax rate is less for next years filing, then of course your normal refund would be less next year, but I do not see how this could amount to $600 less for everyone. Everyone makes a different amount, and I do not see how someone making $12,000 a year and someone making $30,000 a year could have that $600 figure be the same. Ok, so I am confused and am no tax expert, but this just does not make sense in average man's terms.

 

[SheDaisy0088]

Sleepy,

Yes, it would make sense for the government to hang onto it. But, when does our govenment ever do things that make sense?

 

[frost5000]

ok, I'm going to post again, despite my inner-voice telling me to turn the computer off and just stay away from this topic (I think I mistakenly upset a lot of people from my post on page one). Please keep in mind I have kinda an "off" sense of humor, not trying to offend!!! With that said, here we go! I am starting to think the reason the "refunds" are being sent out early (before Nov. elections maybe???) may be to sway political opinions for better "ratings"? (I know I'm gonna get blasted for this one!!! ) Otherwise why not keep the money, earn interest and give better refunds at tax time (there are no elections in April???) Just a thought....

 

[Riverview]

Politics as usual!
Riverview

 

[tink2dw]

frost5000- I think you got it!!They knew that GW's controversial election wouldn't help any Republicans keep their jobs, so ply the people with a little payola!!! THAT THEY GET BACK!!!

 

[SheDaisy0088]

Frost- BINGO!!! You got it right!! I voted for Bush because of the fact that I like his policies. Not because of this rebate stuff. i think it is a big concidence that it is being done at this time of year!!!

 

[Luv2Roam]

Warren Buffet, one of the richest men in the country, lives in Omaha. He was quoted in our local paper stating that even he doesn't think the taxes are fair. He said legally, he can pay less in taxes than his secretary.

 

[pats]

Wow....all this controversy...and im just glad to be getting $600 just in time for my Disney trip!!!! Come on August...haha

 

[DisneyKidds]

It has been stated that the reason the rebate is being given now is to help stimulate the slowing economy. The idea is that the billions of dollars sent in rebates will be pumped back into the economy when people spend the money. As traditional thinking goes - this will help businesses, create jobs, yada, yada, yada. Is it this or is it political? I'll stay away from that.

As for one comment related to the fact that if tax rates are lower next year then refunds would be lower. (So why the rebate?) Generally that may be true in future years. But for 2001, it will take some time before peoples withholding rates are changed. This will result in the gov't withholding taxes at current rates when actual tax liabilities will be based on lower rates. Thus the rebate on the excess withholdings.

 

[phins_jazy]

I don't know if we get the refund or not. I don't have my 2000 taxes in front of me. All I know is that we are a two income family....well, technically 1 and a half since I only work pt, family of 3. We made about 39,000 last year. We have a 2 year old DD. Will we get the refund??????

 

[6_Time_Momma]

It sounds like you would probaly qualify, but the determining factor is how much you ended up paying in taxes after you tax forms were filled out. For example, if you had $1500 taken out of your checks last year and got all of it back, you actually paid no taxes, so you would not get the rebate. If you got all but $300 back, You paid $300 in taxes and you will get a rebate of $300. If you didn't get any of it back, you paid $1500 in taxes and so you would get the full $600.

 

[phins_jazy]

Thanks alemankc
I don't remember exactly how much we paid in and how much we got back but I do remember we got less than what we paid in. I remember making a joke with my DH that it didn't pay for me to work since it put us into a different tax bracket and we got less back. So hopefully we'll get something back. If not the whole amount any amount will do.

 

[msr709]

I'm completely confused, when it comes to tax matters I am a DUMBO!! LOL!! Does this mean that if the taxes taken out of my paycheck were over $8,000 in and I got a refund of $1,500 this year when I filed, I do qualify for this "refund"? I am head of household with no child-care age children, my dependents are over the age of 21 with the exception of one 16yo.??

 

[DisneyKidds]

msr709

Based on what I have seen and the info you provided you should qualify for the "advance payment".

You tax liability for 2000 appears tohave been $6,500 ($8,000 less $1,500 refund). As Head of Household your "advance payment" amount should be $500.

 

[Ecdubfan]

I think what many of you are neglecting here, is that this rebate is an advance on next years tax returns. Next year's tax returns include a new $600 tax credit. This is similar to the standard child tax credit. The basis of this NEW tax credit is 5% of year 2000 taxable income up to a max of $600. Yes, this is an advance on next year's tax returns. No, this credit did not exist last year, so there is a maximum $600 new tax credit for next year's filing. If you do not qualify for this rebate now, or if you partially qualify, you may qualify at filing time if you find your circumstancs change to those meeting the guidelines. Granted, there is always politics involved in most government decisions. But, the basis is that there is a potential of $600 in new tax credits for fiscal year 2001. Plus, tax rates were reduced by .5%. What this means is I get to keep a bit more of my hard earned money. If you qualify for the rebate this year, then your 2001 tax return should still even out to the standard set in 2000 with major differences being caused by changes in earnings, exemptions, withholdings, or other deductions that changed during the year.

Isn't it amazing that we Republicans are looked at with such scorn? Lets cut tax rates .5% and introduce a new $600 tax credit and increase the child tax credit by $100 solely to help the rich get richer. I'm by no means rich, but I'll take it!!!

 

[msr709]

You answered my question! The people on these boards are the greatest!