Will I Have to Pay Taxes On My Rebate?
According to the IRS, you will not owe taxes on your rebate when you file your 2008 income tax return. However, you should keep a copy of the IRS letter you receive later this year listing the amount of your payment. In the event you do not qualify for the full amount this year but you do next year, you will need to have the letter as a record of the amount you previously received.
In addition, your tax rebate will not reduce your refund or increase the amount you owe when you file your 2008 tax return.
More Tax Rebate Resources
Tax Rebate Information Directory
IRS Publishes 2008 Tax Rebate Check Details
IRS Launches Tax Rebate Information Center
Will I Have to Pay Taxes On My Rebate?
To Get $300 Rebate, Kids Must Have SS Number
SSI and the Tax Rebate Checks
What if I Filed Before the Tax Rebate was Approved?
Tax Rebate Checks Become Scammer's "Bait"
Comments
what do senior citizens have to do in order to receive the rebate check?
Have at least $3000 in combined Adjusted Gross Income and file a tax return.
See the IRS Tax Rebate Information Center for details on Social Security recipients and the rebates:
http://usgovinfo.about.com/b/2008/02/24/irs-launches-tax-rebate-information-center.htm
Robert
Thanks Robert…this answered all of my questions
i filed head of household with one child as my dependant. will i receive the 300.00 for my child? or do i have to be married in order to get that additional $300
A question: If I need to file for an extension and file my tax forms after April 15th, will I still be eligible for the tax rebate?
Bradley — Yes, but since the IRS can’t process your rebate until they actually have your return, there will be a delay in getting your rebate check. It may take until near the end of the year.
Robert
if the state pays your medicare,will it effect it?
If your state has a state income tax (such as Iowa lol…),unless the individual state passes a bill that you don’t have to pay taxes, you will have to pay state taxes on the rebate next year. So be sure to keep your letter stating how much you receive!
If you are paying installment payments from past years tax will you get the rebate check?
What happens if an extension need be filed?
Tammy, if you owe any federal debts or unpaid child support, the government will apply your rebate to that debt.
At least you’ll closer to debt free.
What happens if you no longer live at the address where you were when you filed your taxes? Do they allow the post office to forward it to you, or are there certain procedures to take?
Dee: If you notified the post office of your forwarding address, yes the rebate check will be forwarded to you. It’s just like other mail.
If you are married filed jointly. Who’s ss# do they use. If one ss# will get it sooner then another?
Because of my income, I am not eligible for this “rebate”. Why am I being punished for being financially successful?
My fiance’s ssn digits are 06 and he filed his return with direct deposit. He has still not received his rebate in his account. Is there any reason why his is delayed? He did get the letter confirming he will be receiving the rebate.
16 – I don’t know about your fiance, but I’d be helping myself by calling the people who are sending the money — the IRS: Toll-Free, 1-800-829-1040
Hours of Operation: Monday – Friday, 7:00 a.m. – 10:00 p.m. your local time.
14 — the first ss# listed on the tax return.
So, will I receive the $300 for my son if I didn’t file head of household, but claimed him? I already received the $600 today in my direct deposit, but I’m not sure if they’re two seperate checks or if they were suppose to come in one.
Call the IRS: Toll-Free, 1-800-829-1040
Hours of Operation: Monday – Friday, 7:00 a.m. – 10:00 p.m. your local time.
My ex owes $40K in child support for our son who since has turned 19. Court ordered never enforced. He has since had 2 children with girlfriend (they have split). Will rebate be split equally between all 3 children? Or will my son lose out once again as he is no longer a minor?
My husband had our tax returns garnished due to an unpaid student loan this year. Does that mean that this rebate will be taken and put towards that as well? Also, neither of us have received a letter stating the amount we should be getting in the rebate. At this point, does that mean we arent getting one???? We filed Married/jointly.
22 — Yes it will affect your rebate. You might try checking the IRS’ Where’s My Rebate web site. Instructions can be found at:
Instructions to the Where’s My Rebate site are at: (If html is working today.)
I received a direct deposit today from the US treasury and I am pretty sure it is my tax rebate, but it is deposited as “US Treasury 220 Tax Refund”. (This is not my refund from filing my taxes a couple of months ago, that already has been deposited). I was just wondering if it would make sense that it is listed as “Tax Refund” or if it may be a mistake?
Please clarify if the rebate is prepayment of qualified 2008 tax credits or if the rebate is in addtion to qualified tax credits.
Thanks!
26 — The IRS: Toll-Free, 1-800-829-1040
Hours of Operation: Monday – Friday, 7:00 a.m. – 10:00 p.m. your local time.
ONE THING I HAVE LEARNED IS NOTHINGS FREE HOW AND WHEN WILL I NEED TO PAY IT BACK IT SAYS IT WILL NOT ALTER 2008 TAX RETURNS BUT WHAT ABOUT 2009? AND SO FORTH?
28. You can go ahead and send it back now if you like, but I’m here to tell you, it will NEVER affect your federal income tax.
I filed head of household claiming my 17 year old and she also filed since she had $5k in income to report. Which one of us will get the $300 for her?? It is posted that anyone you claim 17 or over will not get you the $300 which is insane and because she is not 18, will not get it for her filing. So, it sounds like all 17 year olds are cheated!! Please explain or let me know if I’m wrong??!!
30 — No, 17-year-olds who filed their own return AND qualify for a rebate should get a rebate. Sounds to me like your daughter should get the full $600, but you won’t get $300 for her. Of course, only the IRS has access to your tax returns, so onlt the IRS can tell you for sure.
I have heard that Turbo Tax filers who selected direct deposit will be issued paper checks. Is this true?
My son was in college last year and I was able to claim him as a standard deduction. He claimed zero but did earn over $4K in part time earnings. He receieved all taxes he put in. Since he claimed zero deductions but did make over $3K, does he qualify for a rebate?
My husband and i always filed joint income tax, but when the rebate check and the supporting paper came mo amount was listed for me, the check amount is only for my 3 kids and for my husband. Does it mean, I won’t be able to receive mine?
Actually, the statement that you will never have to pay it back is not true. The IRS site says you won’t have to pay any income taxes on it. If you read the original bill passed by the Senate and the House (available at their website) and signed by Bush, it is merely a LOAN against your next years taxes. In other words, the amount you receive will be offset against what you paid. It’s true your taxes won’t go up, but the amount you paid on it will go down.
Supposedly, Congress is supposed to change this, but they haven’t yet.
If u get SSID monthly will u recieve a check? also since some check has been miss routed will some checks be delayed? and if so will they send letters out to let them know there checks will be late?
WILL THERE BE A TAX REBATE FOR 2008 IN 2009
WILL THE IRS OR FEDERAL GOVERNMENT TAKE THE
REBATE MONEY THAT WE GOTTEN FROM OUR INCOME TAX FOR 2008 FILING.WILL THEY TAKE THE REBATE
REFUND FROM OUR INCOME TAX WE GET THIS TAX
YEAR..THIS WHAT I’VE BEEN HEARING..IS THIS TRUE
Do we have to pay back our stimulus payments out of our 2008 refund checks or not? I am hearing conflicting stories online. I know 2 people that have filed so far and Jackson Hewitt took their money back. One friend lost $300.00 and the other lost $600.00 Turbo tax is also taking the money back…. WHY???
I don’t want any more stimulus checks. They give you a sense of hope and then they smack you in the face by taking it back when you really need your tax refund. Can I choose not to accept it???
thank you for any answers.
Has anyone done their taxes yet? When you filed, did you receive a lot less than last year? After I put in the tax rebate amount that I received on my taxes and the amount went down quite a bit. Other people who I know said theirs were the same after entering their stimulas payment. Does anyone know if we are being taxed on the stimulas payment?
JB
I have done my taxes online and I was not taxed on my $2100 stim. check nor was it deducted from this year’s refund.
I am using Turbo Tax for the first time and Yes, when I put the stimulus payment into the field requested, it reduced my refund by the entire amount I received. Someone needs to clarify this. I didn’t want the government handing these checks out to begin with. I definitely think it is totally wrong to demand we give all the money back the next year. They are talking about doing this again. And why??
Hi — You need to call Turbo Tax’s help line, because, as H&R Block says…
“Your 2008 tax rebate payment will not decrease your refund when you file
your 2008 return, nor will it increase your balance due.”
http://digits.hrblock.com/topicsofinterest/beforeyoufile/2008taxrebate.php
I am on SS Disability and only receive $973 after my medicare premium is deducted. I owe $132,000 on my home and my mortgage payment is $1045 monthly. My 76-year-old mother is making my mortgage payment. I have tried to sell my home, but still no buyers. Even if I sell it, I will only clear $42,000 and can never get a loan to buy another home. I don’t know what to do. I need help. Thank you for any help you can give me.
Turbo tax says you do pay income tax on the rebate check you received in 2008. How come IRS says no. Turbotax says yes. Which is correct? Income tax is getting just too complicated for anyone to figure out unless you are a CPA.
Robert —
I just used Turbo Tax and it Does Not say that. The first thing it asks you to do is to enter the amount of your 2008 tax rebate check (if any). It uses that to calculate your “Recovery rebate credit,” for you, if you qualify for one. Read this blog post:
http://usgovinfo.about.com/b/2009/02/03/irs-clarifies-2008-tax-rebate-confusion.htm
Bottom line is, some people did not get as big a rebate as they were due. The Recovery rebate credit is intended to make up for that.
The IRS is right, you are NOT being taxed on the rebate.
According to the IRS website you do have to claim the recovery rebate on your taxes. Then according to the rest of your filing they will determine how much of the rebate will be used.
Nancy — Nope, the amount of your 2008 rebate (if any) is used to determine if you are due an additional rebate amount — the “recovery rebate credit.” See:
IRS Clarifies 2008 Tax Rebate Confusion
http://usgovinfo.about.com/b/2009/02/03/irs-clarifies-2008-tax-rebate-confusion.htm
WHY DID I GET THE REBATE FROM 2008 DEDUCTED WHEN I WENT TO DO MY INCOME TAXES???? DO WE HAVE TO PAY BACK THE REBATE WE RECEIVED LAST YEAR(2008)? PLEASE ADVISE.
Last time, folks. The 2008 rebate was not “deducted” or “taxed.” It was reported simply to help you or your tax software to determine if you were due MORE rebate money. Read:
IRS Clarifies 2008 Tax Rebate Confusion
http://usgovinfo.about.com/b/2009/02/03/irs-clarifies-2008-tax-rebate-confusion.htm
From Feb. 3.
Hey Roger….would you rather get a 1 time check for 600 bucks or have a higher paying job with consistently higher check that the people who are getting them???
I just did Turbo Tax and they tell me I have the pay the IRS the same amount as I paid last. This is also the same amount I received in my stimulus check. How can this be?
My daughter had Jackson Hewitt do her taxes and was told she had to pay back the stimulas. They figured her return and then said we have to take this 600.00 out and then another 300.00 for the check you will recieve for your son that you didnt get. Whats up??
James — Sounds like she owes more in 2008 taxes than the total amount of her rebates. I’d suggest you ask Jackson Hewitt to explain it. She paid them.
Hello, I prepared my own taxes at a friends office who’s using tax software purchased from a software firm. The amount of my stimulus chwck I received did decrease my refund check when I entered the amount requested. So it’s so very true that it’s taken back, but why is it like this, really.
Hi me again. I just noticed the site for IRS clarification for rebate. The confusion comes in where everyone is talking about their stimulus but then IRS says rebate recovery. the recovery is like a second part of the stimulus. As i said before, I prepared my own taxes on a friend’s software, and my refund was for a little over $6,000. After I entered my stimulus amount received on worksheet 5, my refund went to a little over $5,000. My refund was reduced exactly by the amount that I entered, so why wouldn’t it be true that the stimulus amount reduces your refund amount.
my question: my mom received her stimulus check for my 2 brothers and sister last year, is it going to be deducted from her taxes this year? i have another thing to say but i rather say it personaly because i can cause some problems…
PLEASE REPLY PLEASE!!!!!
its me gina again…im 18 yrs old and i just want to clarify things for my mom, she doesnt speak much english but she is smart thats why im asking…
…she went to do her taxes and she alredy received a check…but she noticed that the check says “chase bank”…and she also noticed that she was deducted $1,000+ dollars…
…she asked the lady that did her taxes and the lady told her “oh thats from last years stimulus check you received, the government is taking it back.”…
when my mom told me i was confused because from my knowledge, that was supposed to be “free money”
the only thing thats coming to my mind is that she is stealing money….
please help me out
gina
Okay, Gina — First the internet is not the place to come for answers to problems like yours. Nobody here is either the IRS nor a tax attorney. But, the 2008 tax rebate checks came from the US Treasury, same as tax refunds, not a bank. And, the IRS did not take anybody’s rebate back. You’ll have to deal with your mom’s tax lady, but get some details first. Call the IRS at Toll-Free, 1-800-829-1040 and explain the situation to them.
I had to pay back the 300.00 we got. So why did it come to us anyway?
do I have to list the rebate I received on the form I use as interest/dividend or any other type income
Do I have to add the rebate as a type of income on mt tax form.
Bernie
That is just not true about the 2008 stimulus money not be taken back by the government. I do turbo tax every year with no problem. However, this year I made an error with regards to how much stimulus we received in May 2008. Instead of 1200.00, I put 797.00 which is what we received due to them taking out previous taxes owed. My error, wasnt thinking since I had the stub from the check received. According to Turbo tax, the rebate was not suppose to effect the return in anyway – well guess what! We received a letter from the IRS stating that we owed 80.00 instead of receiving 323.00 – due to line #70 which is the rebate line! Huh! Do the math! They took the entire amount back! Plus I checked my sons who earned much less, and he would have gotten back 600.00 more on his taxes if the stimulus “loan” would have not been there. Looking back over past taxes where we received the stimulus checks, we did not have to put them on our taxes. This was purely a “loan” from the government plain and simple. Open your eyes people!!!!!
Clark is right, the IRS and the Govt. have lied about this so-called rebate check. If I put the $600 rebate I got on my tax return I get that much less back. How many more lies are we going to tolerate?
I too just received a notice from the IRS stating I owe them $604 because of the rebate check I received. I am reading where it states that rebate check will not change what you owe or receive. I owed $250 and paid it now I have to pay an additional $600. I’m on hold with the IRS now. 20 min wait but I have them on speker phone while I continue to work. I have to refute this.