Quote:
|
Originally Posted by dc_dux
I think Derwood had it right.
It is not rebate on 07 taxes....its more like a "prebate" on '08 taxes, but based on your '07 tax return. And there will be another form to attach to your 1040 next year.
The IRS faq cited above is a bit misleading...its correct that it wont reduce the overall refund you receive in 08...it just pays a portion of it a year in advance.
But maybe I have it wrong. In any case, I'm not getting a check...so I have no stake in it.
|
From what I'm reading, that's not correct either. It's an "advance" on any tax credits you might be eligible for next filing. It neither reduces nor increases your refund.
This was done a couple years back, when families were getting checks of $400 per child; the following year, the dependent child deduction, which was about $3000, was reduced by $400. So come next year's filing, if that child deduction was to be $3000 per, it'd be reduced by $300 per and your own allowance reduced by $600.