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Not sure if you, guys, are all clear about the Tax Rebate, but me personally understood only today what it means for my 2008 taxes. So, I wanted to share some links in case you wanted to know too.
This is an official document (it seems) to explain tax credits including the 2007 Tax Rebate http://www.house.gov/jct/x-16-08.pdf. The info about tax rebate starts on p.4.
"Rebate checks
Most taxpayers will receive this credit in the form of a check issued by the Department of the Treasury. The amount of the payment will be computed in the same manner as the credit, except that it will be done on the basis of tax returns filed for 2007 (instead of 2008. It is anticipated that the Department of the Treasury will make every effort to issue all payments as rapidly as possible to taxpayers who timely file their 2007 tax returns. (Taxpayers who file late or pursuant to extensions will receive their payments later.)
Taxpayers will reconcile the amount of the credit with the payment they receive in the following manner. They will complete a worksheet calculating the amount of the credit based on their 2008 income tax return. They will then subtract from the credit the amount of the payment they received in 2008. For many taxpayers, these two amounts will be the same. If, however, the result is a positive number (because, for example, the taxpayer paid no tax in 2007 but is paying tax in 2008, the taxpayer may claim that amount as a refundable credit against 2008 tax liability. If, however, the result is negative (because, for example, the taxpayer paid tax in 2007 but owes no tax for 2008, the taxpayer is not required to repay that amount to the Treasury. Otherwise, the checks have no effect on tax returns filed for 2008; the amount is not includible in gross income and it does not otherwise reduce the amount of withholding ."
Those Rebate Checks Are Really Just Advances On Future Refunds | KXNet.com North Dakota News
So, this is what I understood. If I assume our income doesn't change in 2008, and no changes in the family, but after I do 1040 I see that I still owe $100, I'll have to return the IRS $1,400 next year ($1,500 is our Tax Rebate they're going to send us, IMO). Since we're going to have another child this year, that $1,400 would be reduced by a child credit (if we qualify).
Do you think I understood it correctly? That English in the official document was not plain English to me and English is not my first language, btw.
This is an official document (it seems) to explain tax credits including the 2007 Tax Rebate http://www.house.gov/jct/x-16-08.pdf. The info about tax rebate starts on p.4.
"Rebate checks
Most taxpayers will receive this credit in the form of a check issued by the Department of the Treasury. The amount of the payment will be computed in the same manner as the credit, except that it will be done on the basis of tax returns filed for 2007 (instead of 2008. It is anticipated that the Department of the Treasury will make every effort to issue all payments as rapidly as possible to taxpayers who timely file their 2007 tax returns. (Taxpayers who file late or pursuant to extensions will receive their payments later.)
Taxpayers will reconcile the amount of the credit with the payment they receive in the following manner. They will complete a worksheet calculating the amount of the credit based on their 2008 income tax return. They will then subtract from the credit the amount of the payment they received in 2008. For many taxpayers, these two amounts will be the same. If, however, the result is a positive number (because, for example, the taxpayer paid no tax in 2007 but is paying tax in 2008, the taxpayer may claim that amount as a refundable credit against 2008 tax liability. If, however, the result is negative (because, for example, the taxpayer paid tax in 2007 but owes no tax for 2008, the taxpayer is not required to repay that amount to the Treasury. Otherwise, the checks have no effect on tax returns filed for 2008; the amount is not includible in gross income and it does not otherwise reduce the amount of withholding ."
Those Rebate Checks Are Really Just Advances On Future Refunds | KXNet.com North Dakota News
So, this is what I understood. If I assume our income doesn't change in 2008, and no changes in the family, but after I do 1040 I see that I still owe $100, I'll have to return the IRS $1,400 next year ($1,500 is our Tax Rebate they're going to send us, IMO). Since we're going to have another child this year, that $1,400 would be reduced by a child credit (if we qualify).
Do you think I understood it correctly? That English in the official document was not plain English to me and English is not my first language, btw.
. 
that this rebate will not affect my 2008 in any way........Grrr my brain seems clogged 
), since we expect a child this year we'll get an extra $300 when we file 2008 taxes. That's what the tax guy wrote. 
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