Tax Guru-Ker$tetter Letter
Friday, May 02, 2008
Actual 1040 required for rebate check...
Subject: gov tax award
Hi Kerry"Hey just a line, I was wondering if our extension suffices for filing and do we qualify for a stimilus tax award. Thanks
The amounts of the stimulus checks depend on the info on the 2007 1040; so IRS can't start that process until they have actually received the 1040 for 2007. The extensions don't have any of that pertinent info; so IRS can't determine the amount amounts of the checks from those.
As I said in an earlier post on my blog about this very issue, these rebate checks are not free money. Whether you file your 2007 1040 in time (by 10/15/08) to receive a check or not, it will all equal out.
The people who receive these special stimulus checks will end up with smaller refunds when they file their 2008 1040s, or possibly even owe money that they wouldn't have if IRS hadn't sent out these advance checks.
In another typical example of keen government intelligence, many people who receive these stimulus checks in the next several months will just end up having to repay that same money to IRS when they file their 2008 tax returns.
This whole thing is a Mickey Mouse tactic to try to get people to spend their way out of the recession, when the actual result will be that this money won't even cover the increased cost of fuel for their vehicles, which is the real cause of the recession.
I hope this answers your question.
A good illustration of why fuel prices are so high, courtesy of Lucianne.com: