Back when I wrote about the details of stimulus package, someone quickly corrected me when I called it “free money.” This commenter pointed out that last time the government disbursed rebates to stimulate the economy (2001) we ended up being taxed on those rebates received.
Well, yesterday someone asked the Tax Expert for the WSJ whether this rebate would be taxed as well and it seems the answer is no! According to Tom Herman, Senate Finance Committee staffers say the economic-stimulus payments will not be taxed. But in order for you to receive it you will have to file your taxes for 2007.
I still have a few questions about this, for example when they refer to working couples they usually talk about people married filing jointly. But my husband and I file that way and he is the only one working outside the home. How will they check that both people have a W-2 to their name? It would be interesting to see how they work out the little kinks in the plan.
I was also reading Jennifer’s Hub on this issue and I agree with a lot of things she mentions. But I really liked her comment on making sure that if you spend your rebate at least make sure you are paying for US made goods or services. Check out what she had to say here.
Good News on The Stimulus Package
17 years ago
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