Confirmation that tax rebate will not have to be paid back.
There was a discussion earlier today about the rebate checks and having to pay them back or pay taxes on them in 2008 returns.
The latest from CNN Money is that no, you get to keep them.
Details below the fold:
From the artile linked: Here:
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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.
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So, this really is a tax cut for the middle class that will not have to be paid back. It will increase the deficit, unless the money is recaptured somewhere...