The Tax Rebate in May?

IF you are receiving a tax incentive rebate this May 2008 - will this be TAXed as income in 2009 as income for 2008? If so will my income bracket jump to the next level to possibly equal between $250 to 350 bucks?

Isn't this Peter to pay Paul?

Lastly, I suppose they funds used for rebates are either some sort of Bond (?), but it is an IOU from the government - aren't we all just really using our own (tax) money as a loan to be taxed anyway (double or triple taxation)?

* sorry for all the mispellings, I rail out when I get (&^%) upset.

Your answers are awesome, thumbs up all around...

I've been reading some of Audrey A's post - she is wicked good!!!

It simply adds to the national debt, which we all have to pay back someday.

But it will not be taxable income on your 2008 taxes. This rebate that we get this year is basically an advance on a credit on next years taxes. The money that you will receive this year will simply offset the credit on your 2008 taxes. It will not affect your income level, or your refund amount (if anything)

Edit: Thank you. I try :)

No, it will not be considered taxable income next year, but will directly impact next year's refund. The stimulus payment is just an early advance on next year's refund, based on this years tax information. It is not free money, just a way to get people spending cash. There is no bond involved.

Check out the following website for answers to all your questions...
usgovinfo.about.com/od/incometaxandthe...

many tax rebate articles availble here

No.

The rebate will not effect your 2008 federal tax liability or refund. The law says the IRS can't recover any extra rebate payment by reducing your 2008 refund or adding to your 2008 tax bill.

The "rebate" is an advance credit against your 2008 tax return (which will be filed in 2009). However, it is calculated based on the amounts shown on your 2007 return. When you file your 2008 return, the IRS will recalculate your "rebate" based on the 2008 amounts. If this results in a larger "rebate", you will receive a check for the difference. If this results in a smaller rebate, you will not have to repay the difference.

The "rebate" will not increase or decrease any tax refund to which you are entitled. It is an additional refund.