My husband has heard that everyone gets a $1600 tax credit this year. Is he out of his mind?

I say there is no way this could be true. They would have to pay out just way too much money. Has anyone heard anything about this?

My husband has heard that everyone gets a $1600 tax credit this year. Is he out of his mind?
First of all, this is a PROPOSAL, not a done deal. Nobody gets anything unless Congress passes a rebate, and if they do, there's no guarantee that it will match what the president talked about in his speech.





As proposed though, it is a REBATE on taxes - so only people who pay taxes would get it. The proposal was to eliminate charging tax on the 10% bracket, the lowest bracket. Amount would be up to $800 per individual filer, or $1600 for a married couple filing a joint return, but only if you paid that much in income tax for 2007. If it's passed soon and as proposed, it's estimated that the checks could come as early as June.
Reply:It's just talk right now. They are trying to come up with ways to stimulate the economy. No legislation has passed yet. One proposal is $800 for singles and $1600 for married couples.
Reply:No, it is not a credit on your 2007!!! If Congress passes the plan it will either be a tax refund advance on 2008 or a rebate paid this Spring or Summer. If it is a rebate, you won't have to pay it back on the 2008 return. Whether or not it will be taxed is up to Congress.





In either case, 2007 is normal, no extra credit. Your husband is slightly confused but not crazy :)
Reply:Yes he's crazy
Reply:It hasn't passed congress yet. But it likely will.
Reply:They said it on TV they will do it to help the economy.However they did a huge interest rate cut to 3.5% this morning, so that tax refund might not come....
Reply:I have heard it. Just don't know when and if.
Reply:It is partly true. The proposal is to spend 150 billion to jump start the economy but you will not get it until this summer. The bummer is that you get 800 for single and 1600 for married, but it will be taxable income, so you will have to pay taxes on it at the end of the year.
Reply:yes
Reply:It's all over the news. They're pushing to issue checks to citizens to reboost the economy. I've heard a few different figures, but one of them was $800 to singles and $1600 to married couples.