Getting Back Into the Black

CNNMoney.com posted a good article for anyone that is still curious about the tax rebate checks that will be coming in a few months.  I think the most important part is this:

 People who have already filed their 2007 tax returns and reported at least $3,000 in qualifying income don’t need to do anything else. The IRS will assess their rebate eligibility and send a check to those who qualify. Qualifying income for the purposes of the rebate includes wages and salaries, Social Security benefits and certain veterans’ and retired railroad workers benefits.

I knew that my taxes were going to be really easy this year because I only had one stock sale in November so I filed the day after I got my w2.  I was actually quite impressed that the IRS had the money deposited into my account within 2 weeks.  Based on my past experiences with the IRS, I do not normally hold my breath waiting for them.

A comment over on freemoneyfinance.com really caught my eye just now. I’ve been trying to figure out exactly how the Economic Stimulus Package is going to affect me and my family over the next year and especially how its going to affect my taxes.

CF had this to say:

***They’re temporarily removing the 10% tax bracket on the first $6,000 in income for single filers (total of $600), and the first $12,000 in income for married filers (total of $1,200)***
To use an example: Assume congress never passed this bill, and suppose you are someone (an individual filer) who would receive a $300 refund next year for your 2008 taxes. What would you rather have?
1. No stimulus package: $300 refund in April 2009
2. Stimulus package figured on your tax return: $900 refund in April 2009
3. Stimulus package as it has been passed: $600 in June of 2008 and $300 in April of 2009

I’m taking #3 every time.

While it may be an “advance” on next year’s taxes, it’s a prepayment of an excess that they’ve decided to give. If they had passed nothing, we’d be worse off. I hope this makes sense - sorry if it doesn’t, but bottom line, we’re better off financially with the stimulus than without.

I think thats the best summary so far of what is in store for us. My thanks to CF for clearing it up.

After all of the confrontations with the IRS I’ve had over the past year I was not expecting to get an income tax return. For the past few years its been common place at our home for us to file our income tax, expect a refund and a few weeks later get a notice in the mail that our refund was kept and applied toward my outstanding balance.

While I dont like to count my chickens before they hatch, I’m happy to report that I will be getting my refund this year. I talked to the IRS yesterday and they have the payment scheduled to go out tomorrow into my checking account.

Of course, being the obsessive compulsive person I am, I’ve already marked all of it for use in our savings and travel plans.

Where’s your refund? - goes to the IRS website.