Understanding the US Stimulus Package: Impact on Next Year's Taxes Explained

[pampchefrhondab]

Hey anyone know about this package yet? I know we will be getting a refund, but...... does this go against what we get back next year?

Example if you get $2,100 from the package and you only got $1,000 back this year, will you owe $1,100 next year? Is this just and advance like they did the last time? Of course I'm comparing this to the same income/expense.

 

[Jennie4PC]

my understanding is yes

 

[Kodeysmom]

if you get back $2100 and next year you would only get $1000 you DO NOT owe the $1100 but if you get back $2100 and would get $3000 you will only get $900.

 

[redsoxgirl]

From what I understand, it will only take away from refunds, not add to what you owe.

 

[Gloria&Emily]

IRS Info Page on Stimulus PackageHere is the official IRS website that may help:

http://www.irs.gov/irs/article/0,,id=177937,00.html

 

[Mwalker]

I thought this time around it was NOT an advance on your refund for the following year.

 

[pamperedtara]

"What is it? It's an economic stimulus payment that more than 130 million households will receive starting in May.It's not taxable, and it won't reduce your 2007 or 2008 refund or increase the amount you owe when you file your 2008 return."

From the IRS website under Basic Information on the Stimulus Payments

 

[BethCooks4U]

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.

The above was quoted out of the Q&A in the above link.

 

[pampchefrhondab]

Thank you! I just figured if it reduces my refund next year I'll have to just put it in the bank. I had one child turn 17 this year so I don't get the child tax credit anymore for her. I don't need anything else increasing my taxes.!

 

[Kodeysmom]

The above was quoted out of the Q&A in the above link.

awesome-This must be an update because everything else i have ready said that yes it was against next year.