New $800 tax rebate ?

[dyne]

tax rebate

An article in the newspaper stated that the rebate would be allowable only if the taxpayer
had a tax liability of that amount or more on the prior year tax return.

[ChEAr$]

Good thought there, Koss.

It would probably be more accurate to call it a prefund.

Or maybe taxpayers would understand it better if the check was accompanied by a tax form already filled in by the IRS. The IRS could prepare and send a form along with the check showing all the calculations used to determine the amount of the check. It could be called...

Form 1040-ER, Estimated Refund

BMK

After which taxpayer might be taken TO the ER.

[ChEAr$]

Horror!

An article in the newspaper stated that the rebate would be allowable only if the taxpayer
had a tax liability of that amount or more on the prior year tax return.

But that's not fair to those who have no tax liability. What will they get? (tongueincheek)

[Lion]

Idea

My college daughter had a great idea. Give the rebate to all college students. They will spend it all and stimulate our economy. I'd pay off some bills and save any excess, not adding to our economy. But, our college daughter has no bills to pay off (very cash basis!) and never saves, so she and her friends would spend us out of any recession! I knew we were sending her to college for a reason.

[JohnH]

Good Economics Lesson

Sounds as though your daughter has been paying attention in Economics class. Successful capitalism depends fundamentally upon individual human beings consistently and spontaneously acting in their own self-interest. Tell her she's learning to be a good economist, but a lousy politician.

Incidentally, there will be clients who, like some public figures, like to grouse about how "I really don't deserve a tax reduction". To anyone who really believes that, I offer them a way to come clean with their conscience. A person of integrity who really means what they say would take steps to return the money to the government as soon as the check arrives. Fortunately, there is a mechanism for doing just that. It's found on page 77 of the 1040 instructions. Not only can they return the money, but it will be applied against the national debt (which is usually what they are squawking about). As a side benefit, they get to take a tax deduction for having backed up their empty words with positive action. Oddly enough, nobody has ever asked for the address, which tells me they like being a windbag but really don't have the courage of their convictions.