Is the gov. $600 rebate check taxable income?
So, I have no debt and I already invest in my company IRA and a Roth IRA each year. But I rarely have enough $ to go on vacation. I am thinking that if I take my $600 rebate check and can convince my boyfriend to do the same, we can take a vacation together. My question is: Is the money taxable income? Because if it is, I don't want to spend it just to find out I only got $400 instead of $600. Thanks in advance
Public Comments
- Allot of states R debating this right now...When Bush Senior 1st gave refund checks,,,THose where taxable income....But many people remembered this and where VERY angry about it........I know in my state they R not gonna consider it.
- The rebate checks are actually an advance on next years refund. Therefore non-taxable income. However, if you don't usually get a refund, expect to pay that $600 back next year when you file.
- It's not taxable. Don't spend it before you get the letter confirming the amount you will get.
- The IRS.gov Web site is the best source for additional information and answers to questions regarding the stimulus payments. The site will soon have an online tool which will allow taxpayers to calculate the amount of their advance payment and to check on the status of their specific payment.
- No, it is not a taxable income. Also your rebate can be $300 to $600 if you have qualifying income of $3,000. Read more http://taxipay.blogspot.com/2008/02/are-you-eligible.html
- You don't have a choice about whether you get the check or not. If you qualify, you will get it. Unless, you had a tax liabilty last year or owe outstanding taxes. If you paid anything in last year, your check will be trimmed or eliminated. In cases where checks are issued (like what Bush the first did), the IRS adjusts the tax tables to allow for the refund. You will not have any federal tax liability for this payment, unless your tax situation changed. However, any state that requires income tax has the option to count this. If your state indicates this is income, then you might pay a higher state income tax. If you pay state income tax, you will need to check with your state to see if they count this as taxable income. You may be able to deduct this from your Federal taxes. Check with the IRS or a qualified tax preparer or tax attorney if you need.
- Nope, not taxable. It's a refund of taxes.
- It is not taxable, because it is a rebate of taxes you already paid. The IRS does not consider it income which is taxable. They are giving back to you something that was yours to begin with. Check out www.irs.gov for more info. Also this is not an advance on your tax year 2008 refund. So this means that this is free money from the government. Convince your boyfriend and spend that money to save your country.
- Per the IRS site - NO. http://www.irs.gov/newsroom/article/0,,id=179181,00.html State tax would be another matter - each state would decide that.
- No. Directly from the IRS website: Q. Is my stimulus payment taxable? A. No. You will not owe tax on your payment when you file your 2008 federal income tax return. But 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. Q. Will the payment I receive in 2008 reduce my 2008 refund or increase the amount I owe for 2008? A. No, the stimulus payment will not reduce your refund or increase the amount you owe when you file your 2008 return.
- Federal income tax rebates are not taxable. State income tax rebates for years for which you deducted state income tax are taxable. State income tax rebates for years for which you did not deduct state income tax are not taxable. Sales tax rebates for years for which you deducted sales tax are taxable. Sales tax rebates for years for which you did not deduct sales are taxable.
- It does not seem right that the IRS will give your a rebate check, then turn around and tax it.
