Do I have to pay the rebate back?
No. And here's why.
Your rebate is a one-time tax cut - an advance on a credit you'll receive on your 2008 return.
It's based on your 2007 income initially. If it turns out that your 2008 income and number of children would have qualified you for a larger rebate than the one you received, you'll be sent the difference. If it turns out your 2008 income was lower than in 2007 and you should have gotten a lower rebate, you get to keep the difference.
"If you were supposed to receive a larger payment than you did, you will get the extra money," said Treasury spokesman Andrew DeSouza. "If you received more than what you should have gotten, you will not be penalized."
Rebates: What you need to know - Feb. 8, 2008
I am so confused now on this whole thing
Seriously, most of the guys I know are doing exactly what I'll do with this...if we get it...paying down debt. This is a laughable way to 'stimulate' the economy and is really nothing more than political games to make the voters love politicians in the months leading to the fall election.
Why does this type of game work for politicians?
...It's an uninformed electorate.
Ignorance will be this countries demise. These antics ought to result in a 100% turnover in the House and 33% turnover in the Senate in 2008. But most people don't think. How does this get fixed? or does it?
No this will not get fixed, people will still pander to the stupid uninformed electorate. And yes I use the word stupid because most people I talk to are excited about this, they think it is free money!
So this is just an advance on the 2008 tax return? If you have a big tax return in 2008, then you simply get the amount less the rebate? Lame.
But you won't have to repay the rebate...so the key is to adjust your withholdings so your 2008 tax return is $0, correct? That way the "rebate" is a bonus
Am I interpreting this correctly?
Edit: Never mind, after a good nights sleep, I read the article again and it makes sense now.
It is backed up by a tax cut. The 10% rate has been reduced to 0% for this one time only.