Discussion:Rebate News: A Run on the Bank
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Discussion Forum Index --> Tax Questions --> Rebate News: A Run on the Bank
Death&Taxes (talk|edits) said: | 25 January 2008 |
| It's not going to be a prebate this time if this is correct: http://www.taxgirl.com/
Did I hear the captain tell us to rearrange the deck chairs? | |
| 25 January 2008 | |
| I have read 2 different versions. Is it going to "Earned" income to qualify thus leaving out those retired? Or is it Income? What about SS Income?
Dusty | |
Death&Taxes (talk|edits) said: | 25 January 2008 |
| Here's the latest explanation from Pravda: http://www.whitehouse.gov/news/releases/2008/01/20080124-4.html
In other words, they create a higher -0- percent tax bracket for 2008: "In 2008, taxes would be cut from 10 percent to zero percent on the first $6,000 dollars of taxable income for individual taxpayers and the first $12,000 of taxable income for couples." This must be based on the 2007 return, else it would be an advance of a 2008 cut. I have already heard from someone who has not filed 2005-06, asking if she should hurry to get in on this boondoggle for 2007. For a another view on what may be happening: http://www.tomdispatch.com/post/174884/chalmers_johnson_how_to_sink_america | |
| 25 January 2008 | |
| Chalmers Johnson. I was checking out one of his books at the library, and the librarian started showing me brochures on a tract of land she was buying in Portugal. Where is this coming from, I says to myself. Anyway, now I've bought in, and they can send my check over there. The heck with it. P.S. I got a sub-prime loan on a villa in Sherry country. | |
Taxestaxes (talk|edits) said: | 25 January 2008 |
| Quite honestly, I am tired of everyone coming in saying, Make sure you give me that tax rebate they been talking about on tv....then I have to explain that it hasnt even passed and it will be later, etc...and I just got one angry Mom who is mad because this is the father's year to claim the child, so that means he will get the $300 for the depenendent and not her - can't please everyone! :) | |
Death&Taxes (talk|edits) said: | 25 January 2008 |
| Crow: better hang out a shingle telling the disgruntled you do domestic relations and divorce follow-up. The previous poster has an interesting take. Bet we see no 8332's given this year. I wonder if advocating signing one could be considered malpractice. | |
| 25 January 2008 | |
| I dunno. The divorce rate is down. Of course, the moral majority is claiming victory. But, that's not the reason: people can't afford to divorce. Honestly, I'd quit and sell hotdogs on the street before I handled another domestic relations case. I'm too old for it. | |
| 25 January 2008 | |
| Sorry but I hate this bulls**t. Got clients who look at the EIC tables (I am sure) that make earned income appear what it is not in order to get the maximum EIC even though they are living off the taxpayers who actually have earned income and pay taxes on that earned income via w-2 or tax payments for self employed purposes. These same ppl since they show earned income which is NOT earned but made up by them will essentially get an additional tax rebate but are not at all stimulating the economy. Yes, they will spend it...every dime but where are the checks/balances in line if this is someone who is claiming self employment earnings to boost an EIC and only the EIC is reduced by the self employment taxes? Something is very wrong with this picture...... | |
| 25 January 2008 | |
| So, even though this hasn't passed yet, it is my understanding that it is based on filing status, exemptions and EARNED INCOME, that is, my retirees with $3,000 in interest income and Social Security will get NO rebate, but a person working and earning at least $3,000 will get at least $300 plus $300 per child.
Based on WHAT? Would have to be based on a 2007 tax return filed in order to know filing status, number of children, wouldn't it? So people who DONT have to file (single, W-2 of only $8,000, for example) would'nt get it. And people who file extensions???? and children born by when? | |
Death&Taxes (talk|edits) said: | 25 January 2008 |
| As both TaxesTaxes and I said above, don't go giving away those dependents, Kevin!
It was based on 2001 status last time though it was supposed to get the 2002 cut into the hands of the people faster. | |
| 25 January 2008 | |
| and our illegal aliens who file a return with 5 or 6 children will get it, but our retirees with 40 years paying into the system but with no earned income will not. | |
| 25 January 2008 | |
| I HATE IT!!! Already had 2 people asking me about it..... | |
Death&Taxes (talk|edits) said: | 26 January 2008 |
| You got it, Sandy. A retired client called at 5:15 to ask if her mother, 86, and whose income is 7200 from pension and does not file, would be able to grab her $300. | |
| 26 January 2008 | |
| The thing that gets me is that there are so many people who are actually talking about it....I mean $300. I'm pretty sure none of my clients will ask me about it because that's about the cost of living for 1/2 of a day in this community. It's immaterial to the overall cost of living.
It makes me sad that there are so many people living on such a tight budget that $300 is such a big deal. Yes, there are a lot of people who take advantage of the system, and I'd like to round them all up and stick them on an island far away and let them learn to work to survive. But there are also many many people working very hard and just not making enough to be able to relax about their ability to cover the bills. That's a load of stress, and it's not the kind of stress that passes. | |
| 26 January 2008 | |
| I never thought about the possibility of creating earned income by filing a Sch C. Not enough to owe taxes, but enough to get $300 back. I can't see IRS auditing someone who over reports income.
And for $300 it probably isn't worth their time. Still unclear to me whether retired people with enough income to be in the 15% bracket, but all of it pension, interest and dividends, would get the rebate. Also - what about a married couple with a stay at home spouse. Joint return in the 15% bracket. If the stay at home spouse has no earned income does that mean only a $600 rebate? Also what about the couple with three kids - has a tax liability that is reduced to zero due to the child tax credit. | |
| 27 January 2008 | |
| Oh Jake; people DO create earned income; once it benefits them. I have one client in particular that I believe has other income that she never reported from housecleaning part time, etc. because she got no 1099's and was single with no dependents. This person now has 3 children and guess what? Her W-2 wages were small, but she wanted to now report her income from house cleaning. It then raises her income to the amount of 13K when other years she only had 3 to 4K in w-2 wages. Now, she pays self employment taxes on this additional earned income, but it places her at a point that due to this increased earned income she gets EIC to the tune of 3K. Her refund this year will be about 4K, more than her w-2 wages....tell me she did not figure this out before....I suspect yes, but I take the information she gives me and do her taxes. She is thrilled but her ? is what about my rebate? Will this help my rebate amount too? Gotta love them.... | |
Bottom Line (talk|edits) said: | 27 January 2008 |
| The tax stores are full of these and they want their money NOW!!! | |
Michaelstar (talk|edits) said: | 28 January 2008 |
| Yes - D&T - and he wants them below deck this time! Smartly......rrrrrrr | |
Donniecastleman (talk|edits) said: | 28 January 2008 |
| Yep, they'll all take their rebates and run down to the furniture rental store and get a house full! | |
Taxestaxes (talk|edits) said: | 29 January 2008 |
| "They have already printed the checks! Its a done deal"
Can you believe this? Thats what I had one guy tell me today because thats what he saw on the news, checks being printed!!! I am sure it was just something they were showing in the background as the anchor person was reporting about the topic, but this gentleman insited it was the rebate checks they were already printing!!! lol | |
Rgtaxservice (talk|edits) said: | 29 January 2008 |
| I just got this from the IRS website:
Information on Advance Payments The Administration and Congress have announced an economic growth package that would provide advance payments to many Americans. However, no legislation has yet been enacted, so final details are not available. As more information is available, we will post it to our Web site.
| |
Rgtaxservice (talk|edits) said: | 29 January 2008 |
| I was enjoying a another well deserved cigarette break while thinking of this wonderful 'advance'. Soon I realized that there was more smoke coming from my ears - I was fuming - than my cigarette.
This rebate, advance, prebate, whatever you want to call it is a crock of sh*t. As a taxpayer, I'll have to re-pay this wonderful gift, yet those that don't pay into the system - and sponge off of my tax dollars - will and get it will have to repay nothing. What is wrong with this country?!? | |
| January 29, 2008 | |
| If it hasn't been finalized yet, how do you know some will not have to repay it, assuming some will? | |
| 29 January 2008 | |
| I agree with Natalie. Until there is a concrete act of law, we don't know what the terms will be. | |
Death&Taxes (talk|edits) said: | 29 January 2008 |
| What are you saying, guys and gals? I have mine spent already. | |
| 29 January 2008 | |
| I had a client get the $300 'rebate' a few years back, only to have to 'pay' $300, when I prepared their return.
hehe Has anyone priced a flat screen TV lately? I think I'll wait for the federal coupons for my 'digital converter', | |
Death&Taxes (talk|edits) said: | 29 January 2008 |
| We have this B.O.A.T. in our front yard.....I put periods after each letter because it stands for Break Out Another Thousand. $1200 will not tempt us to move it from its spot. In fact it will allow us to hit the Home Depot Garden Center so we can use it for a planter. In this neck of the woods, a boat that does not move takes the place of lawn furniture. | |
| January 29, 2008 | |
| In yesterday's paper the editorial cartoon showed a huge sign "tax rebate giveaway" with a button to push on a machine to get your "$$ here." The catch was that Pelosi was ready to pull the plug. | |
Death&Taxes (talk|edits) said: | 29 January 2008 |
| If you read on-line today, Baucus and the Senate Finance Committe would lower the base amounts to bring in those on Social Security and extend unemployment, plus allow corporations some NOLD benefits. | |
Rgtaxservice (talk|edits) said: | 29 January 2008 |
| It's another example of Congress turning something simple into a boondoggle. | |
Bottom Line (talk|edits) said: | 30 January 2008 |
| I heard today that the Senate was rumbling about (what I call) amending it to death. (Heaven help us!) | |
Death&Taxes (talk|edits) said: | 8 February 2008 |
| Can't avoid the question now | |
| 8 February 2008 | |
| I have not seen any info on whether or not there will be folks who get more than $300 but less than $600. In other words is it steps or phase out? If you only had a $400 tax liablity in 07 would you get $600 or just the $400? | |
Taxestaxes (talk|edits) said: | 8 February 2008 |
| Is there any more info on this? Such as, elderly living on social sec./penison, should they file to have it on record, or will IRS know who they are? Is there a limit on dependents? IF only one spouse works, will they only get $600; These are just some of the questions I am getting.... | |
| 8 February 2008 | |
| Here's a link to the enrolled version of the bill: http://thomas.loc.gov/cgi-bin/query/F?c110:5:./temp/~c110yc0siM:e1754: | |
| February 8, 2008 | |
| They pulled that link down, Katie! Word earlier was that it was merely a prepay against 08 tax refunds! They've now since revised that so that it's now sounding like fresh money rather than a prebate as DT calls it. Hopefully that means we don't have to track them this time, too! | |
| 8 February 2008 | |
| You can find any bill pending or passed in Congress by going to [1] and doing a search. A great resource.
California has a similar service: [2] | |
| 8 February 2008 | |
| Funny, the link still works for me! Anyway, it's H.R. 5140, and you can get it by doing a bill-number search on Thomas. This is the enrolled version, passed by both Senate and House, so it is a done deal. Press says Pres will sign it. | |
Death&Taxes (talk|edits) said: | 8 February 2008 |
| Oddly today I prepared 2000-2004 returns for a person on the hook now for SFR filings for those years. The Service filed MFS, we amended to MFJ and the 2000/2001 Prebate came up. I could find no record of it on the transcripts I had so I let it go for 2001, a year he really owe money. | |
| February 8, 2008 | |
| D&T, just did the same thing on a 2001 return. No mention on the transcript so I let it go - we'll see if anything surfaces after filing. | |
| 8 February 2008 | |
| The language of the bill for the new rebate contains a provision preventing rebate for people who file real late. Peruse the 2001 rebate bill. | |
Taxestaxes (talk|edits) said: | 8 February 2008 |
| So should elderly/retired people on Soc Sec/pension file even though they dont owe, just so govt. knows to send them a check? I read the link, but the further down I read, I got confused? :) | |
| 8 February 2008 | |
| The link doesn't work now; Thomas only keeps search results up for a certain period of time. Go to Thomas and search for H.R. 5140-ENR and you will get it. | |
| 9 February 2008 | |
| The final version of HR 5140 was modified slightly from its original version. Under the final version, Social Security and Veteran’s benefits will be treated as earned income for rebate purposes. Thus, an elderly person with no income other than Social Security benefits will be entitled to a $300 rebate ($600 if married).
Also, the rebate is still an advance payment of the 2008 rate reduction credit. | |
Rgtaxservice (talk|edits) said: | 9 February 2008 |
| I can't quite remember how the rebate worked in 2001? Can someone enlighten me?
As I recall, the rebate/advance affected the TY2001 refund by reducing it by the amount of the advance. I vaguely remember the credit...vaguely. | |
| 9 February 2008 | |
| Rate reduction credit (10%-5%) for 2001 was accelerated into the early part of 2001 via the use of rebates (advance payments). The rebate reduced (but not below zero) the rate reduction credit claimed on the 2001 tax return.
The current year credit appears to be a little different in that it appears that low income taxpayers who normally have no tax liability will be eligible for the rebate -- even though their rate reduction credit for 2008 will be zero. | |
Taxestaxes (talk|edits) said: | 9 February 2008 |
| SO should someone on soc sec and pension file a return for 2007 so the govt knows to send them a rebate check? | |
| 9 February 2008 | |
| I'll bet IRS will very soon will be announcing please don't do that if not required to file, since they will not want many millions of unnecessary filings. If your SSA-1099 has got the right address, IRS will have all the information needed to send $300. Even if you have a filing requirement for 2007 but don't, but did not have one in 2006 (that they will know from 1099/W-2 file), your $300 (at least) looks good to go out. Or $600 if both marrieds are on SS. If required, file 2007 eventually (but before 12/31/08) and maybe get some more $$, I guess. | |
Death&Taxes (talk|edits) said: | 9 February 2008 |
| I would think the married couple below filing level would receive two three hundred dollar checks, not one $600, since the SSA-1099 would not indicate divorce (how about if one is deceased?).
Several years ago New Jersey preparers were used to filing returns for the elderly so they could receive their homestead rebate, so printing useless paper for electronic zero filings would be nothing new. | |
| 9 February 2008 | |
| Indeed, also thus a disclosure problem! Yes, two $300 checks. Of course, we're trying to write IRS FAQs for them in advance here! But electronic filing do cost IRS money too. There would be political pressure to get checks out mid-May as promised, to (legally) nonfiling SSA and VA annuitants. A zero paper filing could maybe gum up the works? | |
Death&Taxes (talk|edits) said: | 9 February 2008 |
| So the big question here, everybody, is how much will you charge to do a zero return? | |
| 9 February 2008 | |
| Re SS decedents, my Mom passed in July, 2007 (@90). I was executor under will only, probate N/A. Looks likes $300 might be sent to my address payable to her, as the bill does not specifically exclude decedents, as SSA electronically tells IRS about, except to exclude an "estate" in the statute. However, there was no 1041 filing requirement at all in my case, so existence of an estate was theoretical only (household furnishings). I anxiously await IRS FAQ. If an SSA spouse passed December '07, and an SSA (nonfiler) widow(er) gets only one check, there will be political repercussions. | |
Taxestaxes (talk|edits) said: | 9 February 2008 |
| I personally dont see myself charging the elderly/disabled if they are required in the end to do a zero return!! I have gotten a call from our local senior center asking what they need to do.....I told them to be patient, sit tight, and wait for the final ruling....if they need to file a zero return, I plan on setting up a day there to do it for those who need to..... | |
| 9 February 2008 | |
| Anyone wanna guess at this filing demographic? For single alone, $10,050 on 1099s is a lot of bank/market money. Meaning the bottom end of that pyramid is a lot of people you could doin' for free, if media gets the word out good. And the "internets" tells many wired seniors that preparers are doing it pro bono. Like for an oldster with $200K in bank CDs! | |
Death&Taxes (talk|edits) said: | 9 February 2008 |
| In Pennsylvania that 10050 of interest would require a tax payment to the State, so it adds only one return. New Jersey ditto, depending on other factors such as amount of rent paid, but they would need to file for renter's rebate.
My question was more in jest. | |
| 9 February 2008 | |
| A cnnmoney.com article yesterday says those who don't have enough income to be required to file must file 2007 returns to get the rebate. http://biz.yahoo.com/cnnm/080208/020808_rebates_what_you_need_to_know.html?.v=11&.pf='insurance' | |
| 9 February 2008 | |
| Since the IRS will prepare your return for free - I think our government should accomodate all of the low income filers by making themselves available for this purpose and make sure that the low income filer is aware of this service. (started holding breath...turning blue) | |
| 9 February 2008 | |
| Maybe the IRS will put out a new form like they did for the phone tax credit last year, file this if you don't have to file but are filing to get the rebate. Kind of late in the year to be coming out with a new form but maybe they will. | |
