What's going to happen with your Income Tax returns?

Discussion in 'Archived Threads 2001-2004' started by Ted Lee, Jan 24, 2002.

  1. Ted Lee

    Ted Lee Lead Actor

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    hi all -

    i'm hearing conflicting stories.

    the last i heard, the government was going to subtract the rebate checks we got last september from our income tax returns this year.

    then i heard that H&R Block made some mistake and that no deductions will occur.

    has anyone heard what's really up?
     
  2. Jason Handy

    Jason Handy Second Unit

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    this makes sense...I remember the tax rebates were simply to be considered credits towards this year's returns.
    well...so much for getting that new Zenith DTV1080 set top box for my home theater [​IMG]
    Jas
     
  3. Clinton McClure

    Clinton McClure Casual Enthusiast

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    I heard a better one than that: We are gonna have to claim the rebate check (and be taxed on it) as if it was normal income, then the amount of the rebate would be deducted from the total tax return we would be getting, hence we get screwed and Big Brother gets more money.

    However, I never believe anything until I get official word, which has not happened yet.
     
  4. Patrick Sun

    Patrick Sun Moderator
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    I think they slid some portion of income tax from the 15% bracket down to the 10% bracket and the resulting tax "savings" to each taxpayer was the magical $300.
     
  5. nolesrule

    nolesrule Producer

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    That tax rebate was in fact a credit on the 2001 tax year. What they basically did was cut an advance payment for what you would have saved because of the difference between the new 10% tax bracket and the old 15% bracket on the first $6000/$12,0000 (Single/Married, filing jointly).
    5% of $6k = $300
    5% of $12k = $600
    check out this page from the Urban Legends site: http://www.snopes2.com/inboxer/outrage/rebate.htm
     
  6. Chris Maynard

    Chris Maynard Supporting Actor

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    This information was incorrectly reported by KCRA Channel 3 here in Sacramento.

    I will not speculate on what exactly will happen with taxes but KCRA did admit the error that they reported inaccurate information sourced from H & R Block.
     
  7. nolesrule

    nolesrule Producer

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  8. Patrick Sun

    Patrick Sun Moderator
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    But you do on State income tax refunds from the previous year.
     
  9. Ted Lee

    Ted Lee Lead Actor

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    hey chris! howdy from another sacto local! [​IMG]
    anyway, to add fuel to the rumor fire, what is supposed to happen to people who end up owing? will they owe the rebate on top? that would be truly bogus.
    oh well...it looks like i got a little of my money up front and i'm pretty sure i'll get more back still, so i can't complain too much. [​IMG]
     
  10. SteveA

    SteveA Supporting Actor

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    The only case where last year's rebate will have an effect on your tax return is if you did not receive a rebate you were entitled to (anyone who made over $6000 in 2001, but paid no federal taxes in 2000). These people have an opportunity to get a tax credit for the amount of the rebate.

    For everyone else, you don't need to worry about last year's rebate. It won't affect your taxes at all.
     
  11. Ted Lee

    Ted Lee Lead Actor

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  12. Craig Chatterton

    Craig Chatterton Stunt Coordinator

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    Snopes does a pretty good job of explaining it. Basically if you normally get say $1,100 back every year, this year you WOULD have gotten $1,400 because of the 15% to 10% reduction. The government just sent you that extra $300 early. So this year you'll still get your normal $1,100 back. But your return will say you're entitled to $1,400 and have already received $300.
     
  13. Dave Sutton

    Dave Sutton Agent

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    Is it true that certain states are making you claim it as income (for state taxes only)? Iowa is the only one I can remember hearing, and there was only a few.

    Of course, this was a few months ago and things could have changed.
     

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