What's the verdict on the Rebate/Prebate checks?

I haven’t seen any discussion on this topic lately, but I remember a little while back there was quite a bit of debate about whether the checks being distributed are going to be free money or if they are going to come off of our tax returns next year. As far as I know, the debate was never settled, and I can’t seem to get a straight answer in any news pieces. As someone who generally breaks even or gets a modest rebate, I don’t want to spend this check only to owe money next year.

Has anyone determined yet which it’s going to be?


Q. Is my stimulus payment taxable?

A. No. You will not owe tax on your payment when you file your 2008 federal income tax return. But you should keep a copy of the IRS letter you receive later this year listing the amount of your payment. In the event you do not qualify for the full amount this year but you do next year, you will need to have the letter as a record of the amount you previously received.

Q. Will the payment I receive in 2008 reduce my 2008 refund or increase the amount I owe for 2008?

A. No, the stimulus payment will not reduce your refund or increase the amount you owe when you file your 2008 return.

Well, all right, I guess I can trust the federal government. I mean, they’ve never lied to us before, right?


Meh. If they stay on schedule, I’ll have a net +$600 on May 9 and a net -$600 shortly thereafter.

Sounds like you are going to believe what ever you want to believe. Right?

Nevermind. Answered my own question.