TAX REBATE CHECKS--Thanks George

[Deputy Nutz]

While I agree with the inefficiency, I have to question where this money is coming from?!?

Hopefully, it means the government will have to spend less to compensate.

Actually from what I have heard it is just an advance from our 2008 regular tax refund.

[Partial]

Or college student. The way they have it set-up is really stupid. College students are supposed to be dependents because financial aid has an expected parental contribution.

College students are supposed to be grown people capable of fending for themselves. Most college students enjoy that aspect of actually standing on their own for the first time even if it means eating dirt while living in an overpriced slumlord special. Weird.

It's nice when parents can help their kids, but expecting it is a little presumptuous for a number of reasons - socially and economically.

That's awesome you're being excluded though.

You should look into Fafsa. Fafsa has an "expected parental contribution" field. The parents get that money back in the form of claiming their child as an exemption.

To throw your bs back in your face, its really nice that you and your family are going to get to take advantage of the money I am giving to the government while you get to sit at home and play video games.

Hopefully, you're actually responsible with that money and put it into a college savings account instead of wasting it on yourself.

[retailguy]

I didn't write this, but Partial, THIS is where the money comes from...

Bar Stool Economics -->-->-->

Suppose that every day, ten men go out for beer and the bill for all ten comes to $100. If they paid their bill the way we pay our taxes, it would go something like this: The first four men (the poorest) would pay nothing. The fifth would pay $1.The sixth would pay $3.The seventh would pay $7.The eighth would pay $12.The ninth would pay $18.The tenth man (the richest) would pay $59.

So, that's what they decided to do.The ten men drank in the bar every day and seemed quite happy with the arrangement, until one day, the owner threw them a curve. "Since you are all such good customers," he said, "I'm going to reduce the cost of your daily beer by $20."Drinks for the ten now cost just $80. The group still wanted to pay their bill the way we pay our taxes so the first four men were unaffected. They would still drink for free.

But what about the other six men - the paying customers? How could they divide the $20 windfall so that everyone would get his 'fair share?' They realized that $20 divided by six is $3.33. But if they subtracted that from everybody's share, then the fifth man and the sixth man would each end up being paid to drink his beer. So, the bar owner suggested that it would be fair to reduce each man's bill by roughly the same amount, and he proceeded to work out the amounts each should pay. And so:The fifth man, like the first four, now paid nothing (100% savings).The sixth now paid $2 instead of $3 (33%savings).The seventh now pay $5 instead of $7 (28%savings).The eighth now paid $9 instead of $12 (25% savings).The ninth now paid $14 instead of $18 (22% savings).The tenth now paid $49 instead of $59 (16% savings).Each of the six was better off than before. And the first four continued to drink for free.

But once outside the restaurant, the men began to compare their savings."I only got a dollar out of the $20,"declared the sixth man. He pointed to the tenth man, "but he got $10!""Yeah, that's right," exclaimed the fifth man. "I only saved a dollar, too. It's unfair that he got ten times more than I!" "That's true!!" shouted the seventh man. "Why should he get $10 back when I got only two? The wealthy get all the breaks!" "Wait a minute," yelled the first four men in unison. "We didn't get anything at all. The system exploits the poor!" The nine men surrounded the tenth and beat him up.

The next night the tenth man didn't show up for drinks, so the nine sat down and had beers without him. But when it came time to pay the bill, they discovered something important. They didn't have enough money between all of them for even half of the bill! And that, boys and girls, journalists and college professors, is how our tax system works. The people who pay the highest taxes get the most benefit from a tax reduction. Tax them too much, attack them for being wealthy, and they just may not show up anymore. In fact, they might start drinking overseas where the atmosphere is somewhat friendlier."

[LL2]

Very, very good Retail Guy!

[retailguy]

Seriously - This appears to be a pretty good article describing how the process "should" work. I never believe anything until I see the new tax return, but if true, this should help explain the process for all of you.

http://blogs.moneycentral.msn.com/smartspending/archive/2008/02/14/confused-your-guide-to-the-tax-rebate.aspx

Confused? Your guide to the tax rebate
Posted Feb 14 2008, 01:35 PM by Karen Datko
Filed under: Spending, Taxes, Karen Datko
Rating: Lots of readers have told us they're confused about how the tax rebate will work, so we'll try to shed a little light on the matter.

The rebates -- tax blogger Kay Bell dubbed them "prebates" -- are an advance on a tax credit you would have gotten when you filed your 2008 tax return. You're just getting it a year early, says Bell, of Don't Mess With Taxes. The amount will be based on your 2007 tax return and range from $300 to $600 per adult, up to $1,200 for married couples who file jointly, and $300 per child under 17 years of age.

You're eligible if you have at least $3,000 in qualifying income. To see a government document for details about how much you can expect to get, click here.

Kay notes: "Folks who don't usually file a return because their only income is Social Security, certain Railroad Retirement or certain veterans' benefits, or they don't make enough earned income to file, must -- repeat, must -- file a 2007 return to get a rebate." (Supplemental Security Income (SSI) can't be counted as qualifying income, the IRS says.)

Here are some other things you should know:

No special paperwork is required for most people. Just file a 2007 tax return, and the IRS will figure out the amount of your rebate.

Checks will start showing up in May. The money will be direct-deposited into your bank account if you select that option on your tax return.

You have to have a valid Social Security number to get a rebate.

Once you file your 2008 tax return and it ends up you should have gotten a bigger advance payment, you'll get the extra money in 2009. If it turns out you should have gotten less, consider it a bonus. You won't have to pay back the difference.

The rebate is tax-free. You won't have to count it as income on your 2008 taxes. You will have to note it on your 2008 tax return so the government doesn't pay you the money again.

Also, the IRS "emphasizes the stimulus payments will not count toward or negatively impact any other income-based government benefits, such as Social Security benefits, food stamps and other programs."

Who won't get a rebate? This list includes college students who can be claimed as dependants, and people whose adjusted gross income is $87,000 or more ($174,000 for married couples who file jointly). The rebate will be reduced by $50 for every $1,000 you earn above $75,000 ($150,000 for married couples filing jointly).

For more details, click here to read an article Kay wrote about the rebate for Bankrate.com. Also, visit the IRS Web site.

[Freak Out]

they might start drinking overseas where the atmosphere is somewhat friendlier."

Certain Caribbean locations I'm sure......but they still call themselves Americans.

[Scott Campbell]

I didn't write this, but Partial, THIS is where the money comes from...

Bar Stool Economics -->-->-->

Suppose that every day, ten men go out for beer and the bill for all ten comes to $100. If they paid their bill the way we pay our taxes, it would go something like this: The first four men (the poorest) would pay nothing. The fifth would pay $1.The sixth would pay $3.The seventh would pay $7.The eighth would pay $12.The ninth would pay $18.The tenth man (the richest) would pay $59.

So, that's what they decided to do.The ten men drank in the bar every day and seemed quite happy with the arrangement, until one day, the owner threw them a curve. "Since you are all such good customers," he said, "I'm going to reduce the cost of your daily beer by $20."Drinks for the ten now cost just $80. The group still wanted to pay their bill the way we pay our taxes so the first four men were unaffected. They would still drink for free.

But what about the other six men - the paying customers? How could they divide the $20 windfall so that everyone would get his 'fair share?' They realized that $20 divided by six is $3.33. But if they subtracted that from everybody's share, then the fifth man and the sixth man would each end up being paid to drink his beer. So, the bar owner suggested that it would be fair to reduce each man's bill by roughly the same amount, and he proceeded to work out the amounts each should pay. And so:The fifth man, like the first four, now paid nothing (100% savings).The sixth now paid $2 instead of $3 (33%savings).The seventh now pay $5 instead of $7 (28%savings).The eighth now paid $9 instead of $12 (25% savings).The ninth now paid $14 instead of $18 (22% savings).The tenth now paid $49 instead of $59 (16% savings).Each of the six was better off than before. And the first four continued to drink for free.

But once outside the restaurant, the men began to compare their savings."I only got a dollar out of the $20,"declared the sixth man. He pointed to the tenth man, "but he got $10!""Yeah, that's right," exclaimed the fifth man. "I only saved a dollar, too. It's unfair that he got ten times more than I!" "That's true!!" shouted the seventh man. "Why should he get $10 back when I got only two? The wealthy get all the breaks!" "Wait a minute," yelled the first four men in unison. "We didn't get anything at all. The system exploits the poor!" The nine men surrounded the tenth and beat him up.

The next night the tenth man didn't show up for drinks, so the nine sat down and had beers without him. But when it came time to pay the bill, they discovered something important. They didn't have enough money between all of them for even half of the bill! And that, boys and girls, journalists and college professors, is how our tax system works. The people who pay the highest taxes get the most benefit from a tax reduction. Tax them too much, attack them for being wealthy, and they just may not show up anymore. In fact, they might start drinking overseas where the atmosphere is somewhat friendlier."

Great frigg'n story RG!

[retailguy]

Great frigg'n story RG!

Thanks. My favorite line -

"We didn't get anything at all. The system exploits the poor!" (Except for FREE BEER... that is... but conveniently that is FORGOTTEN...)


Good God. How true that one is! We've heard that DOZENS of times in this political climate.... :P

[SkinBasket]

You should look into Fafsa. Fafsa has an "expected parental contribution" field. The parents get that money back in the form of claiming their child as an exemption.

It doesn't surprise me you would read that part of the form that way. Did you also fill out the "Sex:" line with "Yes, please" and then snort and giggle to yourself?

To throw your bs back in your face, its really nice that you and your family are going to get to take advantage of the money I am giving to the government while you get to sit at home and play video games.

Talk to someone who qualifies for the rebate dummy.

Hopefully, you're actually responsible with that money and put it into a college savings account instead of wasting it on yourself.

How's that eepc working out?



Again, I can't tell you how happy I am that someone who hasn't done anything to pull his own weight isn't getting rewarded with a check for it.

[Iron Mike]

I already pissed my money away.

Check the "What Have You Been Up To Lately?" thread.

[Partial]

You should look into Fafsa. Fafsa has an "expected parental contribution" field. The parents get that money back in the form of claiming their child as an exemption.

It doesn't surprise me you would read that part of the form that way. Did you also fill out the "Sex:" line with "Yes, please" and then snort and giggle to yourself?

To throw your bs back in your face, its really nice that you and your family are going to get to take advantage of the money I am giving to the government while you get to sit at home and play video games.

Talk to someone who qualifies for the rebate dummy.

Hopefully, you're actually responsible with that money and put it into a college savings account instead of wasting it on yourself.

How's that eepc working out?



Again, I can't tell you how happy I am that someone who hasn't done anything to pull his own weight isn't getting rewarded with a check for it.

I'm not going to stoop to your level because in time you'll get whats coming to you if you don't change your ways. I would just make damn sure that when I am ironing my wife's pants that I would get that shit as straight as possible.

I'll leave it with an I whole-heartedly disagree, and that everything will fall into place in the end.

[the_idle_threat]

Did you also fill out the "Sex:" line with "Yes, please" and then snort and giggle to yourself?

There's something wrong with this?

[SkinBasket]

I'm not going to stoop to your level because in time you'll get whats coming to you if you don't change your ways. I would just make damn sure that when I am ironing my wife's pants that I would get that shit as straight as possible.

I'll leave it with an I whole-heartedly disagree, and that everything will fall into place in the end.

Is this your woodbuck impression? It's as bad as your Tyrone impression. Maybe worse.

But you're right. I should change my ways. I'll try to be just like you Partial. I think I'll start by poking your mom. I get to go first though. I don't like sloppy seconds.


On a related note, if I were to get "free" money I would use it to pay off our second annual trip to Dollywood this summer. Last year we stayed in Tenn. This year we're trying SC.

[sheepshead]

Im not middle class enough, but i think my son the college student will get some ching!

[Jimx29]

Swift move............

IRS sends up to 15,000 stimulus checks to wrong peoples accounts