Tax Stimulus how does it effect this year

Gary · #1 (**permalink**) 01-23-2009, 10:17 PM

I am confused does my tax stimulus that I recieved this year have to be declared as income? I heard that what ever I got this year is going to be deducted from what ever refund I have coming back. Say I got back $300 this year and my refund for tis year should be around $2400. Then am I only going to get $2100?

Can anyone straighten me out.

TaxGuru · #2 (**permalink**) 01-25-2009, 08:59 PM

According to the IRS, the economic stimulus payment that more than 124 million households will have received "will not be taxable, and it won't reduce your 2007 or 2008 refund or increase the amount you owe when you file your 2008 return."

In fact, according to the IRS the following are the possible scenarios that taxpayers may encounter when filing their 2008 tax return as shown below;

1. If a taxpayer received all of the allowed rebate in your 2008 rebate check, there will be no affect to your 2008 tax return.

2. If a taxpayer received more rebate than the allowed rebate when filing your 2008 tax return, there will be no affect.

3. If a taxpayer received less rebate than the allowed rebate when filing your 2008 tax return, you will be eligible for the rebate credit of the difference.

Thus, as far as your situation is concerned, your tax refund will not be affected.